The hype train
For the last few months, everybody has been
going on and on about Ethereum, and how awesome it is. I have heard people talk about how it will take over from Bitcoin, and that it will be the future of blockchain technology. I can admit I got sucked into the hype too, I even got some ICOs because of Ethereum, which is something I never do because of the risk of loss. Everybody wants a part of Ethereum.
Now don't get me wrong, I am not a hater! I still mine and like Ethereum, but there are issues that I am worried we cannot come back from. The sudden explosive success of Ethereum coupled with the over saturated market for ICOs using Ethereum and we have a problem. The ICOs are congesting the Ethereum blockchain to an unusable level.
Ethereum Is changing!
If there was one thing that can reliably cause a drop in price for any asset or commodity, it is uncertainty! We all know Ethereum will go to proof of stake at one point. This creates more uncertainty than I am comfortable with. Proof of stake is going to be either the best thing Ethereum has done or it will completely destroy it. Let's face it, unlike Proof or work, proof of stake coins tend to go down in value as time goes on. There are several reasons for this, and most of them have more to do with people's lack of interest than a problem with the technology.
Conclusion
Let me be clear, as a holder and miner of Ethereum, I want it to succeed. But I have genuine concerns as to its future! How long will the blockchain be congested? Will the overuse of ICOs drag down the currency? Will proof of stake make or break Ethereum? How hard will it be to stake?
I don't know, but more importantly nobody does. This uncertainty makes investing in Ethereum more risky than before. Please let me know your opinions in the comments.
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Happy Mining!
Viking
Upvoted! I share your concerns about Ether. The hype cycle at $400 was out of control. Investors were talking about $5000 Ether which to me seemed to be a raging bubble. See this article, the author makes the case that the only justification of the current Ether valuation is for financing ICOs. If more ICOs blow up, so it could be a long way down for Ether. http://www.coindesk.com/analyzing-ether-bitcoin-investors-skeptical-take/
exactly my concerns with ether
I support Ethereum, and have been since before it's launch, and I will continue to do so for a long time to come I am sure.
It's all about the Developers and the use case. With the right minds behind it, it's likely to have a future. Don't worry about the price for now, or proof of stake. Keep up to date with the implementation through to Casper and decide as you go along.
My biggest losses in Crypto have come when I have either cashed out at the wrong time to buy miners before the rush to grab ETH, BTC etc began, or when I sold because I was thinking I had to at a low.
If you trust the Dev's and hold like Braveheart, you stand to gain in the long term IMO.
I personally want the price of ETH to drop hundreds of dollars lower so I can keep mining them before they really explode in the next few years.
I think ICO will still bring value to blockchain technology and in general, we will find way to keep congestion in norm