One of the big reasons I bought in to Steem was I saw the "scaling" train coming down the tracks a long time ago. Most of my criticism on this front has been of Bitcoin, but that's only because that was the obvious flash-point for the biggest and worst problem. Steem had near-instantaneous transactions and no fees. It was the natural extreme opposite from the impending scaling problem in Bitcoin and Ethereum.
On numerous occasions this has gotten me attacked or wrongly flagged as some sort of "shill", and offenders even call Bitcoin Cash a garbage alt...as if we don't all know that the original garbage alt is Ripple! (It hits all the bullet points, centralized for banks, useless [not needed for transactions on network], insta-mined, etc.)
Now, thanks to people trading (mostly ugly) digital cat images on the Ethereum Network, it is not merely the top cryptocurrency but the top two (by market cap) which clearly have no ability to scale in their current form to handle any significant uptick in users.
Incidentally, this is probably why EOS has suddenly shot up from a bottom around .50 to a top around $13. Ditto for Bitcoin Cash from $200-$300 to a top of $5000.
The truth is, the market does care about scaling, but only the early, smart money cares has cared so far. We've already passed the stealth phase, when Bitcoin Cash was $200-$300, and EOS was $0.50-$1. This is why we are seeing wild spikes in both currencies - "small" buyers by institutional standards can easily clear the order book on something like EOS.
I recommended EOS long ago for the same reason I recommended Bitcoin Cash long ago - the market was ignoring the scaling risk. It was not priced in. Bitcoin and Ethereum were well into the "Media Attention" phase, but EOS was still in the stealth phase. Now it has taken off:
Ethereum, or Bitcoin, don't even need to have a severe problem. The mere potential for one makes diversifying into these assets wise as institutional money flows into this sector over 2018, which means both EOS and BCH could be looking up.
(However, if atomic swaps change the scaling game in practice, all bets are off.)
The market can stomach a replacement for Ethereum more easily than one for Bitcoin. It's still in denial about that possibility (not inevitability, possibility) with Bitcoin and not fully pricing it in. If EOS is $100 in a year, we'll be saying the same thing about it, too.
You would be wise not to make the same mistake.
PS - Attention Fork Haters: I'll be discussing how Bitcoin and Bitcoin Cash can productively coexist in a near-future post, so feel free to take that into account before flaming/flagging/spamming me in Discord again. I know you've been hurt by Bitcoin Gold. I get it. I almost wrote an article about BTG being a potentially "hostile PR fork", so I do understand. I haven't done my due diligence on the later forks, but the only one I've seen that appears legitimate is Bitcoin Cash. This is not an endorsement of other or future forks. Sigh.
If you have any additions or errata for this post, please let me know! I will see that they are voted to the top of the comments, and will make the appropriate edits (if possible).
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I think Bitcoin will be always the king because the level of decentralization and security can never be reached by another coin, so wealth will always be stored in BTC. A combination of atomic swaps, Lightning network and other new innovation will solve the scaling issues for BTC and since BTC has the strongest fundament it will take back market shares from alts. ETH is a different story in my opinion and EOS can idd take over the leading position, because ETH has no properties that can not be implemented in another coin. Bitcoin cash rises are mostly pumps where weak moments for BTC get used, so I expect it only to do well for the short term.
"because the level of decentralization and security can never be reached by another coin"
Everything here is provably false. If you think Lightning Network "decentralizes" anything (lol), you have no idea what it even is.
"ETH has no properties that can not be implemented in another coin"
OK, so it's exactly like Bitcoin, then?
"Bitcoin cash rises are mostly pumps where weak moments for BTC get used"
Do you work for Blockstream on the side?
https://coinmarketcap.com/charts/#dominance-percentage ... at the 19th of December, for the second time in history, the market cap of btc fell to below 50%, and it continues falling.
I have problems understanding this "store of wealth"-usecase ... one would want to find some more stable asset for such a usecase, I believe the only usecase left for BTC is speculation. I call that the "tulip usecase".
"I believe the only usecase left for BTC is speculation. I call that the "tulip usecase"."
Heh, well-played.
In normal markets, your points would be salient. However, in this crazy, Wild West, California Gold Rush market, BTC might be "stable" enough (as in, it hasn't gone to 0 in 8 years) to be the "store of value" - at least for now. It's ultimate nature as highly deflationary certainly helps here, as does its lack of other real uses given the fees and transaction times.
BTC accidentally backed into the role of US$ (global reserve) for it's particular market...
Bitcoin is not decentralized. There are plenty of coins which are more decentralized, and some can even prevent centralization (which otherwise always happen in most coins).
Thank you. At least someone out there is paying attention. The poster you replied to is either highly ignorant, or a shill.
Either way, he is to be ignored.
The real issue is that no crypto currency by itself can handle a solid load they all have this flaw at the moment. While some can handle a lot more it still falls crazy short of what is needed for a truly globalized crypto currency that is used in day to day exchanges
Steem and EOS both either promise or deliver very hefty transaction loads. The issue with scaling Steem technically, if I understand it (and I may not), is the large amount of transactions are creating a larger and larger blockchain such that server RAM requirements become continually heftier.
Some can handle near Visa size and still be decentralized. EOS is not released yet but will handle 1 million transactions per second. Steem can scale now to millions of users. A lot of investors don't realize Dash can handle on chain scaling currently to 10,000 per min. and has the ability to scale to 400mb blocks implementing specialized hardware for its paid nodes. The tech is here to scale to world but Investors have been over looking these problems
"Dash can handle on chain scaling currently to 10,000 per min"
Unfortunately, nobody wants Dash for anything except making their own Masternode.
I kept wondering when this issue would come to the fore. Better to address it now than wait and have it used as a club to bash cryptocurrency to the general public later.
Indeed. I elucidated a similar view in my article on Bitcoin and Bitcoin Cash co-existing, with a possible use case for Bitcoin as a reserve asset (like gold.)
Bitshares and Steem come pretty close tho...
Altho we have not even seen 5% yet of wat they are capable of,
and the tx is already better than eth/btc at that level
By far. Unfortunately, the pesky market seems to discount fundamentals far too often.
very informative information.thanks for sharing
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I daresay this gif completely misses the point.
lol that's a funny gif x)
I agree, steem and bitshares are still undervalued despite the huge rally we just had. Graphene tech is a leader in the blockchain space. Steem should be ranked much much higher than 34th market cap. It could be the best opportunity in the crypto market!!
I thought the same when I first joined Steem, and clearly it's done well lately.
However, I am regularly disappointed at the market's inability to value these sorts of fundamentals. Bitshares, aside from having a tough interface, should be the exchange gold standard. Steem should be used for many more transactions than it is (account registration requirement aside).
You got a 9.00% upvote from @postpromoter courtesy of @lexiconical!
Interesting. I forgot that you make a lot of points in regards to crypto that really teaches me a few things. Litecoin..in regards to scale-ability and micro-transactions...What's your quick thoughts?
Sorry I'm getting to this so late...
Litecoin scales better than Bitcoin, but probably not enough to takeover. Atomic swaps may help. I think LTC looks good for awhile, yet.
I am a very strong believer in steem! I'm telling everyone I know on this planet about steemit and its potential! It is such a great and helpful community! I'm very proud and honored to be a part of the steemit community! Two thumbs up my Friends! )
We're glad to have another enthusiastic supporter such as yourself.
Good analysis and agree that the ability to scale is important.
Thank you for composing a comment salient to the discussion!
You're welcome and thank you for recognizing it so much after the fact... I hope you have a fantastic day :)
Where the F have you been?
I just posted an APB on you.
"One Adam 12, One Adam 12, be on the lookout for a man with a conscience."
I wrote this on another comment yesterday, but is fits for this post as well.
I recently watched an interview with Bitcoin Jesus. His beginning investment in Bitcoin was recently worth $342M! Believe it or not, he has sold it all out and moved it to Bitcoin Cash. Here is what he said about it:
"Bitcoin transactions are getting slower and unreliable. The costs to transact Bitcoin cash are only a penny as opposed $50 for a $10K BTC transaction. Bitcoin cash is made to scale. In the near future, Bitcoin will continue to do well as money comes into this market. Eventually though the market will choose and it choose something that is low cost to transact with and doesn't have slow transactions. At some point, Bitcoin cash will overtake Bitcoin as the market's choice."
Great post and l love the graph. Haven't seen this one before.
I definitely think Bitcoin Cash has a bright future. Whether it can overtake Bitcoin before an even faster alternative steps in is still up for debate!
Exactly!
That's quite a mouthful.
can you tell me what is the meaning of witness vote
The witnesses for Steemit are the block-producers. A little like miners in other currencies. Their servers secure the block-chain, so voting for trustworthy ones is crucial.
The Steem blockchain requires a set of people to create blocks and uses a consensus mechanism called delegated proof of stake, or DPOS. The community elects 'witnesses' to act as the network's block producers and governance body. There are 20 full-time witnesses, producing a block every 63-second round. A 21st position is shared by backup witnesses, who are scheduled proportionally to the amount of stake-weighted community approval they have. Witnesses are compensated with STEEM Power for each block they create.
Steemit leverages Steem because the founders of Steemit believe Steem’s decentralized text content storage and governance model makes Steem an excellent platform for supporting the long term success of its social network and digital currency tokens.
Well said.
" for supporting the long term success of its social network and digital currency tokens."
I wish they were a little more focused on the former than the latter.
Excellent explanation!
I just hear it but do not understand what is it..
Think of them as the server-hosts that run the block-chain.
Steem + EOS = GG! :D
@lexiconical buying into steem is more profitable and it will be more profitable
Do you have any basis for this assumption going forward, now that we have reached prescribed prices?
Your article was better but to know better more about this article you have to look out our new article i published today
https://steemit.com/bitcoin/@angelinacastle/what-is-next-bitcoin-here-are-4-possible-candidates
Thank you for the compliment.
I also had an express of moving a portion of my money in eos but I have to open an ethereum wallet and crypto exchange account. It may be a hassle on my part but I have do it sooner or a bit later.
You can open a bitshares account and buy open.EOS. Saves the time and hassle.
That sounds a nice idea but I am concern of being hacked since it happened in the exchanges.
Hacked on bitshares? Bitshares is a decentralized blockchain exchange and you can have a local wallet, as far as I knew.
Oh, very well then. I'll just give it a try.
This is accurate information.
BTS is decentralized, it can't be hacked.
It's probably worth noting that BTS is rather user-unfriendly, so people should expect that.
I hope you chose to do it sooner!
witness vote goodnews
I have no idea what this means. Spam, or language barrier?
Great article, I would argue that BTC may not need to worry about scaling if it places itself as a store of value rather than a transactional medium. Ethereum cannot however occupy this niche as its setup as the "smart contract" coin. We shall see
" BTC may not need to worry about scaling if it places itself as a store of value rather than a transactional medium."
Bingo. See my post on "Bitcoion & Bitcoin Cash Can Coexist."
This post has received a 4.79 % upvote from @booster thanks to: @lexiconical.
i am proud @booster. you really good man and your mind is nice.i always prayer for you and friend @lexiconical.. i am new experiences in your post and i have a lot of learn crypto-currency. have a nice day.
happy merry christmas day.....
You do realize you are conversing with a bot, right?
I like with your story. but I am a little less understanding about some text. success luck, keep the spirit
I have no idea what you are going for here. Why comment if you don't understand the text?
What is your opinion for the IOTAS coin ? No feeds, all premined, and use a Tangled network ? Btw I wish I had knew you before, thanks for the post.
I'm of the opinion IOTA is mostly unsupported hype at this point. I don't see any real tech there.
At this point I think the same, and the price reflect it, the prices are going down after the hype is strating to fade away, but do you think this can change in the future?
This means steem could eventually have the same increase as bitcoin cash and EOS?
That depends on what increase you mean. If you're asking if Steem could be priced at 1000s of dollars, I'd say no - it's inflationary and many of its users simply want to dump it.
But, it's likely going to $10-$15 during this "mania".
I have seen users like @cryptoctopus and @taskmaster4450 make predictions with considerably higher prices.
Let’s all hope steemit find it’s way into success, we are the one at the steering wheel
@dedicatedguy I'm no expert, not even close, but I think Steemit (Steem tokens) have no place to go except up, and in a very big way, over time. Even in the last 1 - 2 weeks the value is UP. The number of accounts have now probably about doubled in the (97) days I've been here on Steemit, I'm guessing, haven't looked at the total number of accounts lately. Anyway, the Steem token value is way up now, and lots of people just invest in the tokens, without even doing a lot, if anything, on Steemit. Combine the growing popularity of Steemit, more users creating great content, and more cash investors coming on-board, and I think Steem is a tiny fraction of where it will one day be.
Again, I'm no expert (in anything), but it would seem that about the only thing that could cause the collapse of Steem, would be if a huge number of users all decided to cash out simultaneously, but I don't see why a lot of people would suddenly lose interest in something as great as Steemit!
" (Steem tokens) have no place to go except up"
Technically speaking, as an infinitely inflationary currency, they have nowhere to go but down in the long term.
"The number of accounts have now probably about doubled"
Too bad we retain almost none of them due to our toxic culture and flagging SJWs.
"growing popularity of Steemit"
https://www.alexa.com/siteinfo/steemit.com
"more cash investors coming on-board"
Citation needed?
"I don't see why a lot of people would suddenly lose interest in something as great as Steemit!"
Incompetent company, focus on SMTs, toxic culture, SJWs/flag wars, open hatred for investors and success stories...
I was just offering my opinions.
After getting into Steemit a little further since my original comment, I see a few reasons why Steemit could fail. You touched on one ("Too bad we retain almost none of them due to our toxic culture and flagging SJWs.".)
Also, the fact that many writers seem to post only to make money, with some having exactly zero interaction with those that comment on their posts, and still others never giving an upvote to worthwhile comments, those that offer something more than, "Good Post," will also turn people away from bothering to participate. I thought rewarding others was at the heart of this financial Utopia?
Steemit could eventually become a place for those holding substantial Steem in order to accumulate more, but once those having little Steem start to give up and exit in droves, it'll be a race to dump what's left and exit with maximum gains. Utopia destroyed.
At one time I was about to invest cash into Steem, but I don't see that happening now. Unfortunately, I can easily see it going the way of the 'Pet Rock.' I wish that wasn't my opinion.
Great to read that!
Let’s hope for a even better next year!
Cheers!
Yes sir, cheers!
@lexiconical Great post! ..."PS - Attention Fork Haters"...hahaha this is something I would say. If they stop hatting maybe they can get in the fun. Time is of the essence hehe. Best wishes to all :) - @splendorhub
I am forced to use the colloquialisms of my time.
You got a 4.37% upvote from @upme requested by: @lexiconical.
Send at least 1.5 SBD to @upme with a post link in the memo field to receive upvote next round.
To support our activity, please vote for my master @suggeelson, as a STEEM Witness
Yep, Steemit, and soon EOS are/will be perfect examples of the way blockchains are supposed to work! When digital kitties breaks your shit, your shit needs some work!
A few weeks later, the market price is certainly leaning towards agreeing with you.
Yeah, cryptocurrencies aren't for the faint of heart. lol
This post has received a 4.67 % upvote from @upmyvote thanks to: @lexiconical. Send at least 1 SBD to @upmyvote with a post link in the memo field to promote a post! Sorry, we can't upvote comments.
That was a very good lesson I learned from reading this, I am trying to keep up with my husband who is in bitconnect I try to learn all I can about crypto so I can have a heads up, thankS for that
Oh, boy, that's a whole different can of worms!
Although, to my knowledge, Bitconnect has no scaling issues so far, and decently fast/cheap transactions.
It's so hard to predict things in this crypto market, who's to say how far the price will go up? and if it goes high enough, it might have been foolish for you to wait to get in after the crash, maybe eos will never see $10 again in the long term. WHO KNOWS? The point is to find a crypto that has true potential for adoption, scaleability, and store of value. I think eos has the first two checked. We'll see if it's a store of value in the long term.
"It's so hard to predict things in this crypto market"
One of the issues that makes it so difficult is this market's stubborn insistence on ignoring almost all fundamentals. It's starting to feel like a casino.
I agree. No one wants to consider the facts or even prepare for a worst-case scenario. It's all about what the next hottest coin is. It's a good place to be, but I'm no throwing new money in yet.
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Amazing stuff. I had bought EOS at 1.50 and saw it go down to .50 where i averaged a bit. Glad i did that to see the moon today buddy.
Regards Nainaz
#thealliance
Did you see it touch $18 just the other day? I hope you've still got it!
11.71% @pushup from @lexiconical
Nice job noticing the scaling issue. I've been concerned about that as well. I feel like none of the major coins are up to the task.
There are plenty that can scale, they are simply ignored by the market. Currently.
Bitcoin was the king,is now the king & will be the king...
thanks for sharing...
follow,vote, comment & resteem @lexiconical
"Bitcoin was the king,is now the king & will be the king..."
Way to cut and paste a nonsense reply that completely misses the point of the article.
I literally just disproved this bullshit.
Nice post. I am not a technical person, but you don’t need to be to realise that what you are saying intuitively makes sense.
And I wonder now whether, after an initial rush of new money into bitcoin, much of that new money is now educating itself and switching to some of these alternatives.
I’m happy that my biggest positions are EOS and BTS - need more STEEM still!
Cheers
"after an initial rush of new money into bitcoin"
It's worth pointing out that pretty much all "new money" has to go into Bitcoin, at least at first. It's our "reserve asset trade-denominator", for lack of a better description.
Hey @Lexiconical
Totes agree with this
Lol at the cryptokitties rage
Seems so ridic, whoever had that idea was pure genius x)
Man am so glad you're back to posting on these topics :))
"Man am so glad you're back to posting on these topics :))"
Yeah, that really lasted a long time before I started getting flagged again...
Lolololololol don't be such a grouch and come back on Steemit and have fun with the rest of us!
I know you're busy taking over the world and freeing yourself from the Matrix but surely you still have enough time to come put a smile on the faces of a few of your most fervent and zealous supporters on here from time to time ;)
@lexiconical Great post. Important information that people need to incorporate to their knowledge base to achieve better financial success . Also many users in the know supplying good information in comments. Providing a good source for making connections or networking. One c.c. I have found to be of interest. I think may be a sleeper. NEM (XEM) smart assets. Thanks for the share. P.S. I contemplated resteem. However, the pink cryptokittie advertisement was a bit too much.
UpVote and Follow me...
Please
New Economy Movement isn't a sleeper, it's been in the top 5-10 for like a year or more.
I've also never heard of even one person either buying or using it for everything. It may be less used even than Dash.
"the pink cryptokittie advertisement was a bit too much."
Don't kill the messenger.
Scaling is always going to be an issue, you wanna buy some cryptokitties Bra?
It doesn't need to be. Steem scales like crazy, and there are many coins with virtually no scaling issues yet.
Bitcoin could scale by changing 1 fucking number in the code, if Blockstream wasn't malicious...
We forget sometimes that the new money coming in is no indicator of technical understanding. Thanks for this article. I do feel that the people who don’t take the time to educate themselves on the tech and issues surrounding it, will be the ones that lose biggest in the long term.
It is also well worth nothing that new money coming in is practically forced to buy Bitcoin first. The price of Bitcoin itself is well-warped from any true assessment of Bitcoin itself, and is difficult to quantify now.
This post has received a 13.39 % upvote, thanks to: @lexiconical.
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This post has received gratitude of 5.03 % from @appreciator thanks to: @lexiconical.
Thank you @lexiconical for promoting this post together with https://steemit.com/budget/@jerrybanfield/introducing-steem-budget-proposals
You got a 17.39% upvote from @allaz courtesy of @lexiconical!
I keep hearing about this 1 million transactions per second on EOS and Steem. Has that been proven? Where can I find more details on that?
For Steem, you can look data up on transactions records.
EOS is still pre-implementation.
You got a 30.30% upvote from @upmewhale courtesy of @lexiconical!
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I feel so far behind reading this. I am an accountant in the so-called real world but have not got a lot of finance experience. All of this market playing and conjecturing reminds me of the stock market and the people who play it. Not that there is anything wrong with that.
Assuming I figure out how to get any steemit money out of here (!) I plan to make small buys in a few of these alt coins and follow all of you smart people to see what happens. I can do the laddering trick without emotion I think. I've been learning from haejin (no at sign in self-protection) for months but it turns out he is controversial now lol.
I'm using @maarnio's daily crypto contests to try to get up to speed on alt-coins and I have learned they are very diverse! Today, I'm watching a movie on his daily post which is an interview with the guy who started ethereum.
This interview is worth watching for many reasons, including the set design and clothing choice. This guy is not wasting money on the finer things of life unless his crazy sweater came from a designer and just looks like a thrift store buy! I'm completely bemused about where he is sitting and wondering if the chair he sitting is on is going to collapse.
Once I got over the visual - his every sentence is a blast of info I could spend a lot of time to try to understand. I like his analogy of crypto to programming languages. The people who create them - create them. It is up to others to find the use for them.
But I'm really trying to keep focused and just keep posting :)
I came over to thank you for the referral to steemfollower. I had signed up long ago and never used it. Going over and figuring it out was my best move of the last days and I will write a post soon. What a great addition to my steemit time and I am very happy with the votes I'm getting and the choices of what I get to vote for. So far, I like it in every way.
Merry Christmas and here's to a wonderful 2018.
I'm sorry to have missed your comment, it was a good one.
"but it turns out he is controversial now lol."
Just the usual suspects, long-time abusers like Bernie and Transisto, going around implementing their communist utopia. Best to ignore it.
In fact, I think it's probably best to ignore Steemit entirely, as I am mostly now trying to do. I digress.
"I came over to thank you for the referral to steemfollower."
Glad to hear it is working for you!