Top 4 Reasons why Ethereum may Ultimately Fail - NOT
Why the Merkle article "why Ethereum will fail" is unfounded. The author wrote that
Eth will fail due to these 4 reasons ( I will prove each wrong in detail):
CRYPTOCURRENCY ICOS ARE A RISK
EXPLOITS AND WEAKNESSES "Ethereum has no secure multisignature wallet solution currently. "
NO SUPPLY CAP "Unlike Bitcoin, with its 21 million hard cap, Ethereum has no fixed maximum supply. This means the value of every individual ETH lowers every time a new coin is brought into circulation"
NOT AN IMMUTABLE BLOCKCHAIN
IMMUTABILITY: Let's explore this concept as it pertains to investors. While all chains are immutable in that a hard fork is really a different chain, it is always the new "winning" chain (highest block height) that maintains the same symbol, so therefore, the same-symbol-different-chain progression over time speaks to the attitude of the developers as it might pertain to new changes going forward after the split. With Ethereum - the attitude going forward is "we won't tolerate contract exploits" however, we see that Ethereum now is a LOT more resistive to mutability - look at the Parity hack, look at so many other hacks - were there any rollbacks? any split? no. So this comment is more for the AUTHOR - Eth is demonstrating to be not too mutable now right?
THE TRUTH ABOUT INFLATION (I requote myself): The level of new coins can be compared to any new coin including bitcoin when it was only two or three years old as well. that is because one can look at it like this, before reaching any market cap, x% of coins are produced per year. Now while btc was producing 14% new coins a couple years ago, it was still skyrocketing in value. Ethereum will be producing only 1% new coins per year or less, once Proof of Stake is implemented, sometime in November. Far less than what bitcoin is currently at, Somewhere around 4.5% I believe, recently cut from 9%? (Math for btc: 12.5 btc per mine * 52,000 mines per year) = 657,000 coins / 16 million total coins = 4% rate right now.) ETh is at 14% right where BTC was just two short years ago. Eth will be at between .5% and 12% in November. FAR less than btc is at now. Those facts are important. eth will surge in price as soon as Raiden is released for it.
ETH ROLLBACK ATTITUDE: helping stop theft as the only example of a "rollback" is not necessarily a bad thing. We are not talking chargebacks here. We are talking 100% agreed consensus that a contract was used not according to intention. That said, the recent misuse of poorly written contracts as in parity - did NOT cause a hard fork. Therefore, one can assume that the new ETH immutability is pretty strong. To speak to #3 "Eth has no secure mutilsig wallet" That is a RIDICULOUS statement. What happened with Parity was simply because the PARITY wallet designer did not add an "internal" flag to the initwallet function (or otherwise protect the function to ensure it was not already initialized to "fresh"/"new" addresses). All the "heat" should be on him, not on the ETH chain. That is now fixed incidnently. Go to GITHUB to review the edits.
SUPPLY CAP LIMIT: The level of new coins can be compared to any new coin including bitcoin when it was only two or three years old as well. that is because one can look at it like this, before reaching any market cap, x% of coins are produced per year. Now while btc was producing 14% new coins a couple years ago, it was still skyrocketing. Ethereum will be produc9ing only 1% new coins per year or less, once Proof of Staek is implemented, sometime in November. Far less than what bitcoin is currently at, Somewhere around 4.5% I believe, recently cut from 9%? (Math for btc: 12.5 btc per mine * 52,000 mines per year) = 657,000 coins / 16 million total coins = 4% rate right now.) ETh is at 14% right where BTC was just two short years ago. Eth will be at 1% in November. As an author, it is hard to know all the facts in such a hard space. Btu I hope I've shed some light on some of them.
Perfectly!