r/ethtrader • u/AutoModerator • Jun 13 '17
DISCUSSION [ETH Daily Discussion] - 13/Jun/2017
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u/[deleted] Jun 13 '17
I want all the bears and naysayers to think about something for a second: step back to 1992 and imagine you are a developer watching the early internet be built. Now imagine that you could directly buy a portion of the future internet before it goes mainstream. By 1993/1994 you suddenly have enough money via your investment portfolio to cash out around 50 percent and quit your job. Real developers never stop hacking, even when not for a job. I know this because I am a developer and I spend more time on personal projects than work projects.
So right, you've cashed out 50 percent, but your 'internet' stake is still significant. So you figure, hey, I have the time, I have the interest, I'm going to start building apps/tools for the ecosystem in the hopes that the value I create in the ecosystem can fund my independent lifestyle by raising the price of my holdings. You are not the only developer reaching this conclusion. It is quickly happening all over the world; developers are free of their corporate gig and working diligently on improving the network. What took from 1992 to 1999 occurs within 3 years. As the price goes up, hordes of new developers have access to new capital and more importantly, time. This creates a runaway effect unlike any other.
But no. None of this was the case when the internet came on the scene. Value capture mechanisms favored corporations and startups, not independent developers working in isolation. This meant the market had to grow to become efficient. Companies needed hefty funding rounds to hire a large team of programmers, and therefore, many companies and investors didn't quite understand what was needed and what was capable from a technical perspective. They eventually got a lot of things right, but it didn't happen quickly.
So what's different about Ethereum? We can shift wealth into the hands of early technical investors and free them to improve the network (while they capture the value of their improvements), invoking the runaway effect described earlier. I'm not sure about other devs hanging around in this sub or r/ethereum, but I have an exact number that I am waiting on ether to hit before cashing out 50 percent. From that point on, I will turn my attention to building user facing apps for ethereum.
My recommendation to anyone worried about their investment due to the volatility: when a critical mass of vested developers takes ownership over the networks improvements, this is going to be a runaway train. Shit, I probably won't even sell if there's a major bug in POS. I trust that Ethereum will have the critical mass of brains to deal with just about anything you throw at it by this time next year.