My bravado of piling tonnes into LEND isn’t lasting long. It will take a while for them to launch their new interface. I’ve put some of it back into Neo/Gas as the price got knocked down a bit aswell.
There is some logic to this. When I perused the LEND smart contract system I saw that Ethereum has serious issues right now.
Slow transaction rates for smart contacts 1-12 hours
Gwei rate is starting to become exorbitant, 20-40 USD but sometimes 80 USD and it is out of control of the dAPPs operators.
I have participated in an ICO ten days ago, many of us are still waiting for the transactions to be processed!
It’s unknown how quickly or efficiently Ethereum can deal with this (as mentioned earlier, Ethereum is currently doubling transactions every month).
Other newer platforms like Neo, Qtum, Eos , Cardano (when it’s up and running), IOTA (When up and running) could step into the gap. Neo is the only I know of that is fully functional , launching ICOs and has ecosystem of it’s own tokens right now.
Anybody know anything about Ethereum Classic platform loading?
Secured loans are backed by tokens/coins and they act as security for the coins/loans/USD you want to borrow.
This is a smart contract so there is no bullshit middleman that is able to run off with the money (only Ethereum with their rapidly rising and floating transaction fee unfortunately). You don’t kill your credit score if you default either.
The lender is 100% guaranteed to get that collateral if the borrower defaults. This is really an excellent use case for blockchain and smart contracts. Things get more complicated obviously for unsecured loans but that is possible by integrating some kind of credit ratings.
So I could put in LEND or other tokens to get a loan for 10 Ether.
Then I don’t have to sell off my LEND or other tokens because I think they are a good store of value or appreciating rapidly. After 30 days I have to pay back the Ether and the premium which might be 0.1 ether or whatever. Only by placing the loan and the premium back in the lenders account will they release my LEND tokens back to me (currently ETHLend uses a 67% of collateral loan limit).
One of the problems ETHLend is facing is the ridiculously fast rising price of Ether. The volatility is very difficult to deal with. Some people are asking for USD loans due to this.
They will also be introducing syndicated loans and a bunch of other stuff in next few months. But their interface is goddamn awful right now, new website should be up in a month maybe.
I’ve no doubt decentralised lending will be a massive part of this blockchain ecoystem and will evolve very rapidly for consumers and businesses and probably governments too , whether LEND will be around in a few years is anyone’s guess. If anybody asks you what is the point of blockchain in the real world this is a classic example.
Thanks again @Brianjones for all the tips and logic behind your decisions, a nice change from the forum bitcointalk which has became impossible to read because of people flooding and getting paid for it.
The thing about cryptos so far is they are HIGHLY volatile.
Look at Bitcoin history it has been extraordinarily volatile. Check it’s chart last year even!
I wrote 2-5 times because I wanted to be conservative. It could well do 10x times as well. Maybe 20x by end of year as a surprise for us all? Or 7 times. Or just 2 times or have a big crash just before the end of the year but then bounce back again.
I don’t think it’s value will drop below present value for very long as it is generating a lot of money from smart contract and transaction fees, 85% of the tx and ICOs are running thru it and it has a huge name brand like bitcoin.
NEVER panic sell after massive crashes. Its the fastest way to lose your money. Just have to hope that your particular coin can bounce back which in the majority of cases they do (many many coins will fail this year probably 80% or 90% you could lose money on them)…
The biggest effect on the market is not the technology but human psychology . That is why you hear so much talk about FOMO and FUD. Why it jumps up and down one day and not the other? You always hear it’s because of the Korean govt or the Indian govt or whatever but who really knows?
The biggest influence on movement of lots of coins right Now are YouTube videos !! They are very influential.
Another weird thing about cryptos is that even if they fail they can sometimes be resurrected e.g. xtrabytes, Pascal coin.
A point was made that the cryptos are going down… just a quick google would’ve showed readers the reason. Yes, South Korean authorities have been off/on cracking down recently, but the reason prices specifically went down so much today was this latest action of the exchanges being raided by police and tax authorities looking into tax evasion. The same goes for days when cryptos are on fire.
Just look around for the reason and point it out to your followers, it’s called “adding color”.