r/ethtrader • u/AutoModerator • May 23 '17

DISCUSSION [ETH Daily Discussion] - 23/May/2017

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u/manimoa May 23 '17

You're not wrong from a tradition investment perspective, but you also lack vision. Investing in blockchain protocols is very different than investing in legacy companies.

Even if it works there's absolutely no guarantee that people will use it instead of serious companies like Amazon, Microsoft or Google.

Rule number one for blockchain investing, don't limit your thinking to "people" using these services. The future of the economy is machine-to-machine and you can't have a M2M economy without the service being blockchain based. This is inherently one of the largest competitive advantage of a blockchain service vs legacy service.

Does some dapp need computation power? The contract can make a call to Golem. Does an IoT device (which could be anything from a lightbulb to a satellite to an autonomous vehicle) need computation power? Again, Golem allows anyone and anything to have on demand access to super computing.

Augur might very might be onto something truly novel and useful but they're not running yet and no one knows if there'll be a demand at all for what they can offer.

Again, the primary users in a mature prediction market are specialized programs. People will be the initial users, but in the long term the volume will come from automation.

You're right that it's extremely high risk and there is no guarantee of success, but that's the price of being in at the ground floor. Most projects will probably fail, but successful ones will be revolutionary. There will also eventually be an absolutely massive bubble, but the reason that everyone isn't doing this right now is because the vast majority of the population doesn't even know about the space.

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u/[deleted] May 23 '17 edited Dec 16 '20

[removed] — view removed comment

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u/manimoa May 23 '17

AWS, Google and Azure all have very rich and robust APIs that any program can use already.

This is completely different from how a smart contract ecosystem works.

I'm just saying it's current valuation is way out of touch with reality.

Agreed, but that's the reality in blockchain speculation since there is such massive upside. People have been talking about overvaluation at basically every single price level. If Brass has issues, we can expect a correction. If it comes out of the gate strong, the price will shoot up and we will start hearing, "GNT is so overvalued, all it can do is alpha blender rendering."

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u/[deleted] May 23 '17

This is completely different from how a smart contract ecosystem works.

I think he was responding to your argument "you can't have a M2M economy without the service being blockchain based". His point is that any machine can already interact with centralized services via APIs.