Quote from: gustav on July 25, 2014, 09:32:25 PM

I was reading the disclaimer and they said the network could be instable and businesses could be forced to stop operating if eth becomes too expensive. My question is: how can it go to the moon then? Isn't that like btc would stop working once it's more expensive than 2k$ or something? Isn't it kind of guaranteed then to fail? I mean, don't we know the rampant speculation around here?
Guys, you can't speculate on eth because if you do it fails!

I know nobody will listen, then isn't it already nailed it will fail?

edit:
copy of TOS:

"19.15 Risk of Rapid Adoption and Insufficiency of Computational Application Processing Power on the Ethereum Network

If the Ethereum Platform is rapidly adopted, the demand for transaction processing and distributed application computations could rise dramatically and at a pace that exceeds the rate with which ETH miners can bring online additional mining power. Under such a scenario, the entire Ethereum Platform could become destabilized, due to the increased cost of running distributed applications. In turn, this could dampen interest in the Ethereum Project and ETH.

Insufficiency of computational resources and an associated rise in the price of ETH could result in businesses being unable to acquire scarce computational resources to run their distributed applications. This would represent revenue losses to businesses or worst case, cause businesses to cease operations because such operations have become uneconomical due to distortions in the crypto-economy."

I indirectly responded to this post over here: https://bitcointalk.org/index.php?topic=707237.msg8031122#msg8031122

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My question is: how can it go to the moon then?

Why should it? The purpose is not to make people money. The purpose is to allow people to make smart contracts. However, people are opportunistic and some will risk that people will value ETH at some arbitrary value. The opportunistic people are called investors and Ethereum, like many startups are relying on them since no one would get anything if Ethereum developers stop developing. They still need money right now so Ethereum team is speculating people will speculate and they can continue to pay rent/food/etc. We are using abstract objects to come to agreement. If people do not think it is worth it to trade X for ETH, they will not trade. Thus ETH is valued less until someone values it.

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Isn't that like btc would stop working once it's more expensive than 2k$ or something?

If you consider almost 1 billion people make less than $1.00 USA dollar a day, bitcoins are already out of the reach of many, as a person would require technology to own BTC and they can barely afford food and the network continues to work as many businesses conducting billions of dollars worth of transactions a year continually begin accepting it. However, even when 1 btc = $100k, bitcoin would continue to work as each bitcoin can be subdivided into 100 million units.

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Isn't it kind of guaranteed then to fail? I mean, don't we know the rampant speculation around here?
Guys, you can't speculate on eth because if you do it fails!

Speculation leads to failure all the time as speculation is the assumption of risk.
For instance, 1 person could have bought 90% of ETH so far. However, if you consider they fall ill in the next 6 months and die without leaving record of their identity or their purchase to their heirs, that 90% would forever lay unclaimed, and those that bought the other 10% would probably had made a wise decision to assume that risk.
All sorts of scenarios can occur. It's up to each individual to decide whether the assumed risk is acceptable for the assumed reward. Their disclaimer is educating people about the product. This is the opposite of the definition of scam. A scam would want to minimize potential risks so you only focus on the reward to hype their product. Additionally, the terms are obvious to anyone who understands the product; execution of smart contracts would be non-economical for many developers so they may not utilize the service, thus working against your speculation and the temporary "failure" of that investment.

Understand as well, some people will toss 1 BTC for no profit motive, but because they want development to continue.

aguy

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