Consolidated Crypto Traders/Chat Thread

Discussion in 'Blockchain & Cryptocurrency Mining' started by Optimus., Dec 15, 2017.

  1. RP_Automotive

    RP_Automotive Member

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    Earnings are also through the roof for miners aswell with all the activity. Whilst it’s great in the short term, in my opinion it just incentivises the developers to implement measures to reduce mining fees as quickly as possible before users of ETH get too pissed off at the transaction fees.
     
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  2. r3s

    r3s Member

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  3. Slug69

    Slug69 Member

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    I am a miner and this is insane. The same rigs that were earning me approx $50 per day two weeks ago are returning $75 per day now. And this is after BTC took a bit of a dive.
     
  4. douver

    douver Member

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    Yeah, the Ethereum devs seems to have been continuously trying to lower the rewards to somewhat mimic bitcoins scarcity, next update is meant to double gas as well too, which should drop the fees - although then miners get the fees from twice as many transactions. Scarcity does seem to be starting to get all hyped up at the moment with these burning style tokens on BSC so the reward drop should play well for Ethereum. There has also been some talk lately about how dogecoin's continual inflation makes it worse than bitcoin. This all doesn't really paint a great picture for POS coins that generally have the comparatively high inflation and it's ongoing forever.
     
  5. OP
    OP
    Optimus.

    Optimus. Member

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    It shouldn't matter whether it's POS or POW, it's more about the creation of new tokens. The game theory with POS is that people will HODL a large proportion of them for stake rewards. The increasing trading scarcity increases each token's individual value and the rewards for staking are lowered to balance it out.

    Unless I'm missing something (I may be) in which case please set me straight so I can re-evaluate my financial life choices!
     
  6. Mac-Pro

    Mac-Pro Member

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    Keep an eye on this site - https://etherscan.io/gastracker

    The Low price of gwei is a good guide to how much we make. The reason you look at Low is because that's where the majority of the transactions are and most likely reflects our rewards.

    100 gwei is average good. 60 gwei is bad and should be looking at other coins to mine.

    Also check out www.whattomine.com to see how competitive other coins are in terms of profits.
     
    Last edited: Apr 21, 2021
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  7. r3s

    r3s Member

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    Profitable mining calculators are only based on current values so unless your selling immediately switching miners over to a coin thats "more profitable" cause its had a pump but then gets dumped back to lower levels soon after is counter productive, there is always more to look at then that depending on whether you are holding what you mine or looknig to cover costs right now.
     
  8. dirkmirk

    dirkmirk Member

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    So I've Been making a killing on Elongate and wracking my brains thinking about what it all means but it's pretty obvious if you think about, this is like the distinct 3rd stage of a crypto ecosystem driven boom and bust cycle(Durr but might need explaining to really get it).

    The first one I went through in 2013 was driven by the price of Bitcoin going up and up and up, some people only bought Bitcoin some were buying altcoins with no fiat pairing, coins like Litecoin, peercoin, name coin, etc you could not trade directly for dollars.

    This drove up the demand for Bitcoin but when people decided to take profits on altcoins you had to trade back into Bitcoin which may cause the price to increase depending on the cycle, that's why you could See Bitcoin or altcoins moving opposite direction depending on the supply of either coin.

    When the market crash was on the only way to get out was to trade to Bitcoin and then to cash out for dollars, that's why the altcoins plummet so hard.

    The 2nd big boom were coins in 2017/18 based on the Etheruem network, those coins were essentially the same pattern as the first Bitcoin crash with the ERC20 tokens crashing harder than Etheruem.

    The 3rd stage is the current one as people are buying up the shitcoins on the Binance network and that's why the bnb token is so highly valued as theirs a high demand as people are buying the safemoons and elongates.

    So what I think is going to happen if these coins keep pumping the BNB token will go sky high probably whilst Elongate/Safemoons are crashing because you can't have thousands of people sitting on paper millons trying to cash out when they market has done enoughz the market has to collapse and temporarily cause a strong demand for BNB.

    And these people won't want to be holding BNB token which will cause that currency to collapse as people trade for dollars or Bitcoin.

    As to what affect this has on the overall market it's hard to say.

    So the next logical wave would be people piling into the other smart contract platforms(Cardano Polkadot, Avalanche, etc)when the new round of sh!t comes out(coins), the currencies inside those platforms will moon because it's the hot new thing.

    I guess that's why I think Bitcoin and Litecoin are the safest coins because they don't have that crazy hype boom and bust driven demand for their tokens.

    Anyway some crazy ramblings , I might get lucky timing TFO of Elongate and BNB but it's a very risky play right now sitting on juicy profits.....

    So hopefully it has a bit of a new boom but I will 100% get out of Elongate and anything to do with Binance

    So much garbage on the platform it's hard to know how the whole thing will handle these ultra pumps n dumps with these shitcoins.
     
    Last edited: Apr 22, 2021
  9. illdrift

    illdrift Member

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    I thought you couldn't actually buy this elongate, that it was a joke, but apparently it's a thing

    https://bscscan.com/token/0x2A9718defF471f3Bb91FA0ECEAB14154F150a385

    From what I can see it is literally nothing but a token, kinda like a NFT i guess? The only thing you can do with it is trade <> with BNB, and then Pancake manages to withdraw a % on any transfer, and they plan to use those proceeds towards charity
     
  10. dirkmirk

    dirkmirk Member

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    They don't plan they do it already( Elongate donating to charity).

    I can't work out what stage of the cycle Elongate is in right now,, how much legs does it have, I had a good think about the tokenomics and it's a hard balance between the foundation selling elongate into BNB, into dollars to fund charity, this does create hype and goodwill but how much people will keep piling into this thing is hard to gauge, it's gotta be a volatile token because the foundation has to sell coins to fund the charities.

    I've got that concern but also the entire Binance ecosystem, just feels like their could be a huge collapse or some black swan event, got that feeling.
     
    Last edited: Apr 22, 2021
  11. illdrift

    illdrift Member

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    I was thinking over how this works and it does sound rather ingenious. It's an entirely useless meme, much like dogecoin (does anyone actually transact with that?). But instead of enrichening asic miners, there's no blockchain being run, it's a hard cap of fundamentally useless tokens.

    Instead, with all the crypto-stupidity going around, they get to have some fun, while actually doing some good with the donations.

    I guess with Tesla accepting bitcoin, it`s easy enough to raise some BNB, swap to BTC and order a new model 3 for some lucky guy.

    It`s a pity they can`t have done this on ethereum, but I guess gas fees would kill the idea of anyone wanting to spend some beermoney on this.

    I`ll look into throwing a few weeks worth of staking rewards at it
     
    Last edited: Apr 22, 2021
  12. douver

    douver Member

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    I have bought and staked a few coins over the years and while the price is stable or going up they're great. It's like you're getting free money. However when the price starts going down, 5% or 10% pa is essentially nothing. For instance, if I look at $10 worth of rewards but the value of the entire stash loses $1000, there's no incentive for me to hodl. So I've generally ended up feeling like an idiot and dumping them.

    In practice no POS coin has actually delivered price wise on that game theory in the long term yet, but POW with reducing rewards has delivered in practice fairly consistently. So perhaps they are the same, but POS should implement some kind of reducing rewards?
     
  13. r3s

    r3s Member

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    Ada price and returns have both increased?
     
  14. douver

    douver Member

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    AFAIK POS just got implemented in ADA a this year? So no real effects from it yet.
     
  15. whatdoesthisdo

    whatdoesthisdo Member

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    Is that always going to be the case though?
     
  16. OP
    OP
    Optimus.

    Optimus. Member

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    It's been there since last year with the Shelly release. The event this year was it going fully decentralized at the end of March with 100% of blocks being created by parties other than cardano themselves.

    The main difference from douver's case (compared to eth and bnb) is the native multi asset support. You can pay transaction fees in that token rather than, say, needing eth for gas. The cardano stakepools will process it and receive their rewards in ADA. So that's one value proposition of the token.
     
    Last edited: Apr 22, 2021
  17. r3s

    r3s Member

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    Nothing is certain in crypto :)

    But 1 would imagine price increases with the rest of the market if bitcoin etc go higher which most predict it will.

    I havent looked into it but coinmarketcap has a token cap of 45billion, i'm not sure how that works with POS?

    If every single ada was staked at the 4.21% APY that i see in my wallet ( not sure if that increases with amount held ) thats 1.35b new tokens a year, i think the market cap can sustain an extra 1.35-2.7b a year at this stage to maintain the price at the least.

    My ada was a long ago purchase that was forgotten, i'd be happy with a 5% increase year on year in price on top of the staked additional coins, at this stage its well above that.
     
    Last edited: Apr 22, 2021
  18. dirkmirk

    dirkmirk Member

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    Peercoin is coming up to 9 years in August the hybrid POW/POS system, the mining rewards only reduce(halve) with every 16X in difficulty and the original design was for stakers to receive 1% rewards on their holdings.

    It didnt encourage active staking as their was no incentive but this has changed, the latest release active stakers will get their annual 1%, the protocol has changed for staking to receive 1% of the total coin supply so active staking receive more than 1% it's more like 3-5

    I remember it was too "low" to attractive but now people are cheering at high inflation and also fixed supply?

    Anyway the rewards I get on my holdings are growing pretty good I wouldn't cash them out for less than $10 a coin though.

    The rewards thing as long as you compare to fiat that's how I look at it, if nothing else Peercoin should grow against the dollar.
     
  19. douver

    douver Member

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    To be honest, for ADA, whether or not it is POS or not isn't really relevant over the next year or two (although that $1-2billion inflation at current prices per year sounds scary and long term must impact surely). Short term is almost entirely reliant on what the developers do. If they abandoned Cardano now, it would almost certainly die. So I'd be more concerned about how well the developers are funded and if the founders/foundation sell their coins. Is there any transparency about Cardano/cash/bitcoin etc they hold?
     
  20. RogerWiIco

    RogerWiIco Member

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    Anybody daring and picking up bitcoin?
     

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