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  • 1 month later...

The Ethereum we use now is created, and the transactions are validated using a "proof of work". Long story short, that means ETH 1.0 is mined using electricity & hardware like graphic cards, and ASICs miners to secure the network.

 

Right now, you have the option to convert your ETH 1.0, into ETH 2.0 early, if you have enough ETH to "stake" which is 32. The process for converting to ETH 2.0 is manual, and optional, and the ETH 2.0 network is already operating now with limited functionality.

 

The "miners" validating the transactions on ETH 2.0 network now are called validators, and have to put up 32 of their own ETH (that they'll lose if they make mistakes, or processed invalid transactions) in order to earn ETH 2.0, like the ETH 1.0 miners do now using proof of work, and processing transactions. This upgrade to ETH 2.0 will create enough transaction/processing capacity to process every transaction in the world, and will drastically reduce the current transaction fee's.

 

Later this year, ETH 1.0 will be run on top of this new ETH 2.0's network, instead of being mined. Sort of like how ERC20 tokens like DIA, BAT, and Tether can be created/run on top of ETH 1.0 now.  People holding ETH won't have to do anything special when this goes down. In short it will work like any other software update, user's will still be using the exact same private keys/recovery phrases to access, and move their funds. You won't have to do anything fancy to keep your coins outside of updating to the latest version of your wallets.

 

 

 

 

 

391848574_ScreenShot2022-03-21at1_59_55PM.png.476c50fc760412fc2a514983121c7507.png

 

 

The part about 6 billion ETH being burned has nothing to do with the upgrade. ETH miners don't get all the transaction fees anymore, some of the fees are digitally "burned" to make ETH more valuable, like reverse inflation. So far 2,002, 295 total ETH (just over 2M) have been burned, and at the current price of $2,918 per ETH, that's about $5,842,696,810 worth of ETH now taken out of circulation.

 

 

Since the start of COVID they've created 80% of the dollars in existence new. This means that once they work their way fully into the economy, the same goods and services that used to cost $100 dollars, should eventually cost $180 when the dust settles. If the government took 50% of the dollars in circulation out, and burned them, things should cost half as much after the dust settles. Making a dollar worth twice as much. This is what they're doing to Ethereum by burning part of the transaction fee you pay to send it, or other tokens using EThereum.

 

TLDR Vitalik Buterin is the Joker in this scene, and ETH will go up in price hard once the dust from the burning starts to settle, sort of like a bitcoin halvening gains, but way more.

 

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2 hours ago, KILZ FILLZ said:

@Mercer should this lower gas fees?

 

 

Yes, the reason the current gas fee is so high is the demand has skyrocketed. They can only fit so much of that demand into a proof of work block, and one is mined every 15 seconds. Your fee has to outbid the next guys until someone gives up. People are willing to pay over $100 per transaction sometimes when the network is clogged.

 

  • The current ETH 1.0 network capacity is around 36 transactions per second max.
  • ETH 2.0 will have "sharding"  from the jump, bringing that number up to between 2-10k transactions per second (depends who you ask).
  • Most agree ZK rollups (which may not be part of the initial 2.0 drop) would increase network capacity to 2500 transactions per second on their own.
  • ZK rollups, combined with sharding will increase capacity to between minimum 100K and max 1M Transactions per second.

 

For reference, there were roughly 468 billion credit card transactions globally in 2020. With 31557600 seconds in a year, that breaks down to about 14,830 transactions per second for all credit card systems combined. ETH will eclipse, and surpass all credit cards in capacity sometime this year, hopefully overtaking Bitcoins market cap this year at over $10k per ETH in the process. The tech breakthrough that will allow large merchant adoption.

 

Ive been placing my own money on this very thing happening since early 2017, when I first started buying up more ETH than BTC, because of the rumors surrounding this massive upgrade 5 years ago.

 

 

 

Edited by Mercer
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I would have never guessed, but the people I buy mushrooms from just hired an artist, and minted some dope NFT's of the artwork they all collaborated on. Honestly,  I was shocked how dope the art was, and how the NFT's ended up selling for so much. Since they're normie, not artists really, and super socialist leaning I assumed they hated crypto. Even though we disagree on so much, we both agree NFT's are excellent for money laundering. Now they have all this clean ETH, and the NFT's in held in anonymous wallets that "won" the bidding.

Edited by Mercer
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16 hours ago, Mercer said:

I would have never guessed, but the people I buy mushrooms from just hired an artist, and minted some dope NFT's of the artwork they all collaborated on. Honestly,  I was shocked how dope the art was, and how the NFT's ended up selling for so much. Since they're normie, not artists really, and super socialist leaning I assumed they hated crypto. Even though we disagree on so much, we both agree NFT's are excellent for money laundering. Now they have all this clean ETH, and the NFT's in held in anonymous wallets that "won" the bidding.


 

Get $ get paid

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  • 2 weeks later...
On 4/20/2022 at 9:59 PM, CLICKCLACKONER said:

@Merceror whoever else can chime in..... are there any more cycles?  It seems there's some people saying that there are still 4 year cycles and others saying that cycles are over.

 

 

Yes, but it's important to note, each halvening (coincides with U.S. Presidential election years), takes a year or two to kick in, and kinda tapered off. Firs halvening brought 10,000 x gains, to 1000x gains next, to 100x gains, then 10x gains, etc. until Bitcoin reaches a high enough market capitalization to eventually stabilize against other large currencies like dollars, Yen, Euro's, etc. once it's no longer has a new supply being minted as part of the block reward.

 

My buy for the rest of 2022 is ETH which has been trying to decouple from Bitcoin's price for years now, just had a triple halvening of it's own which should be kicking in, and wants to go 2.0 by end of Summer.

 

This post below shows an old chart I made, and goes into a deeper explanation of how the supply shockwaves are made, that cause these bull runs.

 

On 2/4/2021 at 8:12 PM, Mercer said:

It always looks too late to get in, but like clockwork every halvening the market slowly starts creeping up, each halvening is an exponential increase over the last. A sort of repeating fractal pattern of exponential growth. Getting in now is still getting in early in the game, and early to this bull run by my calculations.

 

New bitcoin is earned by "bitcoin mining" as a fee for processing transactions. The original "block reward" was 50 bitcoin per block, and a new block is created every 10 minutes. This means every 10 minutes someone, somewhere on earth earned a fresh new 50 bitcoin mining online, usually they sell those newly minted bitcoin to buy more bitcoin mining hardware/electricity and profit. 

 

Roughly every 4 years is a "halvening" meaning that the block reward for bitcoin is reduced by half. That means there's a supply shock, and instead of 50 new bitcoins every 10 minutes, there's only 25 new bitcoin minted every 10 minutes, then 4 years later only 12.5 bitcoin every 10 minutes. The amount rewarded is cut in half until only 21 million bitcoin have been minted then then new bitcoin stops being minted and miners only get transaction fee's.

 

This halvening doesn't cause the price to immediately double when it goes down, it causes the price to slowly climb for over a year into a giant bull market spike. We are half way into the 3rd bull market created, by the third halvening in May last year.

 

First halvening:

November 11th 2012

1 year later Bitcoin spikes to $1200 then crashes for 3 years

 

Second halvening:

July 9th 2016

16 months later Bitcoin spikes to $20,000 then crashes for 3 years

 

Third halvening

May 11th 2020

We're only 9 months into this Bull Market

 

 

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This gives you an Idea the time to get out is getting closer, but we've got at least 3 months of sharp gains ahead hopefully. I hold bitcoin because it's king, but hold ETH harder because it's more useful and actually moves more wealth over it's blockchain than Bitcoins does, and also has scaling solutions in the works so I think it's going to catch up to Bitcoins dominances somewhat as they both grow in adoption.

 

Next halvening comes in 2024 giving us all just over 2 years to start stacking Satoshi's for the next. Nows also a very good time to start thinking big picture in regards to time, and convert out of any shitcoins into BTC/ETH.

 

 

 

 

Edited by Mercer
fair warning
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https://www.cnbc.com/2022/05/04/california-governor-signs-executive-order-on-cryptocurrencies.html

 

 

“The opportunities are almost endless,” Myers said. “We can do things like remove middlemen from transactions involving real estate or even automobiles. We can use it to protect people’s identity and provide benefits to people through government services. If we’re selling carbon offsets, we can make sure the same forest isn’t being sold twice and that there’s some record that’s transparent.”

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