I understand Ether is not a coin, it's a basically a token to use on the Ethereum blockchain in order to initiate any implementation.
Is that basically correct?
What methods will be available for determining Ether value (in BTC or fiat) after the Ether pre-sale is finished, and what avenues will be available to sell Ether for BTC or fiat after the pre-sale is finished. Will Ether be traded on exchanges?
It will be dependent on earnings if i am understanding it correctly.
It costs ether to run these smart contracts, with these smart contracts you can set things up, like a fully automated trustless escrow service that is completely decentralized , websites or gambling addresses, with smart contracts set to payout on demand or when told to. ( there are literally hundreds of other things that can be made with these smart contracts, they are just random examples of what could be created)
These smart contracts will end up earning the people who own them a certain amount of cash every week or month for having them running and performing their function.
the price of ether will be closely related to the earning potential of these contracts. it would likely reach a balanced level between the cost of ether and the amount of potential gains from using ether
If the smart contracts earn the owners a higher return then the price of ether should technically rise. because each ether has an "earning potential" by being used in the running of a smart contract. which is higher than the cost, increasing demand in the coin to be used to earn them money. thus rising the price.