Quote:
Originally Posted by PrimordialAA
Why? Seems like the platform they are building and the people behind it it could very easily/ realistically be top 4 in market caps, it might be close already by the end of the IPO
it's not an IPO. the product isn't even fully developed. it may not be. assuming it is fully developed and functional...
these are all my thoughts, possibly quite wrong and misunderstood:
- ether is used to run applications on ethereum. there is no need for the value of ether to be high.
- ether is divisible 1 x 10^18. Tiny fractions of ether can possibly be used to run apps.
- rather than paying to run the application with ether, ether itself can be almost completely devalued, and the cost may be 100 ether to run the program, but the program itself can require payment in bitcoin or other currency on some basis to maintain the contract.
- the apps can be used to make contracts or payments in any currency, including bitcoin. so if a contract is created, to me it makes more sense to make the contract payable in bitcoin than in ether.
- there is already a lot of investment, and the value of ether is being heavily diluted.
I'm having a hard time explaining. It's possible I just don't understand it very well, but in general I see ethereum as an amazing platform and technology but I don't necessarily see the value of ether. Rather than it being costly to run applications, it should be extremely cheap or free to run these decentralized applications. Although it is divisible 10^18 times, a high value of ether will either make it expensive to run apps or an arbitrary and annoying amount such as 0.0000000001 will need to be paid in ether.
I guess overall the reason I'm hesitant to invest are:
1) possibility it never even comes to work
2) security risks
3) don't foresee a high value of ether
4) don't think it will usurp bitcoin
5) think the value bitcoin will outperform it
Just having a hard time seeing how 2000 ether is or will be > $600 USD.