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Easiest Path to Riches on the Web? An Initial Coin Offering

nytimes.com

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Re: Easiest Path to Riches on the Web? An Initial Coin Offering

#41

Post by [deleted] »

to3m wrote: post #18
sanswork wrote: post #6

Earlier quoted context omitted.

>in fact probably more difficult and I would think a lot of that money is coming from people who were already made rich by other coin like bitcoin. That's why it is easier. You have a bunch of gamblers who have gotten lucky on one bet thinking they are now master investors. They have seen a few ICOs pop so they are willing to take a punt on any that come through pretty much even if it makes no sense.

I claim it can be +EV even when it's a punt. Suppose you make 3x on your first bet, as I did - and it's a long story why i settled for such a poor return ;) - you can then "invest" 2/3 of your winnings, and even if it all goes to nothing then you've still broken even. But in the current climate a 0% return seems, at least for now, unlikely.... (In the interests of even-handedness: Preston J Byrne, quoted in the artic…

[deleted]

Re: Easiest Path to Riches on the Web? An Initial Coin Offering

#42

Post by bluetwo »

200 years ago in the U.S. regional banks printed their own currency. The constitution does not create a common US currency, although we have been operating as if it does.

Will a non-nation state be able to generate enough credibility to run their own currency that lasts a lifetime?

I don't know be I think it's interesting to watch.

And if they do, it may force central banks into a corner by limiting their ability to print money (i.e., lowering the value of your currency by printing money will cause people to move their money to the alternative currency, leaving you with inflation).

Re: Easiest Path to Riches on the Web? An Initial Coin Offering

#43

Post by anguswithgusto »

jamespitts wrote: post #19
nodesocket wrote: post #4

I'm sorry but this is so absurd. They are doing the equivalent of printing their own monopoly money in the garage and then selling it for real currency... dollars.

Metaphors are not as useful as historical analogies or actual descriptions of what is going on. Basically, a new form of fast finance has emerged, connected with a blockchain technology which enables the financing mechanism as well as potential applications that are financed. It is not monopoly money as much as it is speculative vendor financing.

It is not Monopoly money, it is...

>decks out Monopoly money with a bunch of smart-sounding technological bells and whistles

...ephemeral hyper-velocity funny money!

Re: Easiest Path to Riches on the Web? An Initial Coin Offering

#44

Post by anguswithgusto »

jamespitts wrote: post #19
nodesocket wrote: post #4

I'm sorry but this is so absurd. They are doing the equivalent of printing their own monopoly money in the garage and then selling it for real currency... dollars.

Metaphors are not as useful as historical analogies or actual descriptions of what is going on. Basically, a new form of fast finance has emerged, connected with a blockchain technology which enables the financing mechanism as well as potential applications that are financed. It is not monopoly money as much as it is speculative vendor financing.

It is not Monopoly money, it is...

>decks out Monopoly money with a bunch of smart-sounding technological bells and whistles

...ephemeral hyper-velocity funny money!

Re: Easiest Path to Riches on the Web? An Initial Coin Offering

#45

Post by jamespitts »

I would like to make an appeal to the YC community: please reach out and help guide those involved in this rapidly advancing phenomenon.

There is a huge amount of instantly-deployable capital in Ethereum and Bitcoin, held by individuals now seeking ways to put it to work. Many technologists will naturally make use of this energy, but so will BS artists and people under the influence of hubris.

I am making this appeal because it is irresponsible to stand by and watch so much financial energy be directed at projects without appropriate constraint. Many firms funded by ICOs (or soon to be) have qualified leaders and developers and are developing great ideas, but IMO many are also raising too much money for their own good.

What may be needed to guide these rockets to their full potential are maturity, mentorship, and the careful application of jurisprudence and principles of accounting.

Re: Easiest Path to Riches on the Web? An Initial Coin Offering

#46

Post by delhanty »

Alex3917 wrote: post #33
nodesocket wrote: post #4

I'm sorry but this is so absurd. They are doing the equivalent of printing their own monopoly money in the garage and then selling it for real currency... dollars.

Blockchain is perhaps the most economically important invention of the last 500 years. Right now the whole space is worth less than $100B, and it's going to be worth tens or hundreds of trillions of dollars. Obviously valuations have far outpaced the present usefulness of these technologies, but because the pie is so enormous it would be irrational not to overpay. Right now prices are too out-of-whack with reality so…

>Blockchain is perhaps the most economically important invention of the last 500 years. Right now the whole space is worth less than $100B, and it's going to be worth tens or hundreds of trillions of dollars.

That could eventually turn out to be true. But that's not inconsistent with all these new coins that pop-up from nowhere being problematic.

Re: Easiest Path to Riches on the Web? An Initial Coin Offering

#47

Post by wmf »

hendzen wrote: post #15

Someone should start WebVanCoin.

It's funny you should mention Webvan. In 1999 grocery delivery was a hot market, then in 2002 it was completely and obviously stupid, now in 2017 it's hot again. Cryptocurrency is a bubble now, but will the world change such that it actually makes sense in 20 years?

Re: Easiest Path to Riches on the Web? An Initial Coin Offering

#48

Post by mschuster91 »

taberiand wrote: post #30
hendzen wrote: post #24

Earlier quoted context omitted.

Wow. So people should treat it not as a pyramid scheme, but as a legitimate asset, because it can be used for money laundering! That is truly hilarious!

Well, if money laundering it legitimate to you...

Money laundering, in my opinion, is not only legitimate, but neccessary, given that e.g. European banking transactions end up via SWIFT or implants at the NSA headwuarters.

In addition many governments try to move citizens to "electronic payment" (ranging from online banking to NFC credit cards). The reason is once again tracking, and as could be seen during the financial crisis it's easy to just confiscate money when it's just numbers in a mainframe vs actual piles of cash in my home safe.

Re: Easiest Path to Riches on the Web? An Initial Coin Offering

#49

Post by H4CK3RM4N »

hendzen wrote: post #27
jamespitts wrote: post #19

Earlier quoted context omitted.

Metaphors are not as useful as historical analogies or actual descriptions of what is going on. Basically, a new form of fast finance has emerged, connected with a blockchain technology which enables the financing mechanism as well as potential applications that are financed. It is not monopoly money as much as it is speculative vendor financing.

We have "speculative vendor financing" - normally in the form of OTC stocks, i.e. pink sheets. This seems like an even less regulated way of trading pink sheets, except funded by a bunch of software people with a lot of disposable income instead of some mob guys in a boiler room in New Jersey.

The whole point of the blockchain is that you can't forge currency without controlling 50%+ of the computing power in the network.

Re: Easiest Path to Riches on the Web? An Initial Coin Offering

#50

Post by sanswork »

to3m wrote: post #18
sanswork wrote: post #6

Earlier quoted context omitted.

>in fact probably more difficult and I would think a lot of that money is coming from people who were already made rich by other coin like bitcoin. That's why it is easier. You have a bunch of gamblers who have gotten lucky on one bet thinking they are now master investors. They have seen a few ICOs pop so they are willing to take a punt on any that come through pretty much even if it makes no sense.

I claim it can be +EV even when it's a punt. Suppose you make 3x on your first bet, as I did - and it's a long story why i settled for such a poor return ;) - you can then "invest" 2/3 of your winnings, and even if it all goes to nothing then you've still broken even. But in the current climate a 0% return seems, at least for now, unlikely.... (In the interests of even-handedness: Preston J Byrne, quoted in the artic…

Winning your first bet doesn't make the others +EV even if you cash out your initial investment. That's not how EV works.
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