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Quant Network: Token valuation dynamics and fundamentals

Quant Network: Token valuation dynamics and fundamentals
This post intends to illustrate the dynamics and fundamentals related to the mechanics and use of the Quant Network Utility Token (QNT), in order to provide the community with greater clarity around what holding the token actually means.
This is a follow-up on two articles David W previously wrote about Quant Network’s prospects and potential, which you can find here:
For holders not intending to use Overledger for business reasons, the primary goal of holding the QNT token is to benefit from price appreciation. Some are happy to believe that speculation will take the QNT price to much higher levels if and when large-scale adoption/implementation news comes out, whilst others may actually prefer to assess the token’s utility and analyse how it would react to various scenarios to justify a price increase based on fundamentals. The latter is precisely what I aim to look into in this article.
On that note, I have noticed that many wish to see institutional investors getting involved in the crypto space for their purchase power, but the one thing they would bring and that is most needed in my opinion is fundamental analysis and valuation expectations based on facts. Indeed, equity investors can probably access 20 or 30 reports that are 15 pages long and updated on a quarterly basis about any blue chip stock they are invested in, but how many of such (professional) analyst reports can you consult for your favorite crypto coins? Let me have a guess: none. This is unfortunate, and it is a further reason to look into the situation in more details.
To be clear, this article is not about providing figures on the expected valuation of the token, but rather about providing the community with a deeper analysis to better understand its meaning and valuation context. This includes going through the (vast) differences between a Utility Token and a Company Share since I understand it is still blurry in some people’s mind. I will incorporate my thoughts and perspective on these matters, which should not be regarded as a single source of truth but rather as an attempt to “dig deeper”.
In order to share these thoughts with you in the most pertinent manner, I have actually entirely modelled the Quant Treasury function and analysed how the QNT token would react to various scenarios based on a number of different factors. That does not mean there is any universal truth to be told, but it did help in clarifying how things work (with my understanding of the current ruleset at least, which may also evolve over time). This is an important safety net: if the intensity of speculation in crypto markets was to go lower from here, what would happen to the token price? How would Quant Treasury help support it? If the market can feel comfortable with such situation and the underlying demand for the token, then it can feel comfortable to take it higher based on future growth expectations — and that’s how it should be.
Finally, to help shed light on different areas, I must confess that I will have to go through some technicalities on how this all works and what a Utility Token actually is. That is the price to pay to gain that further, necessary knowledge and be in a position to assess the situation more thoroughly — but I will make it as readable as I possibly can, so… if are you ready, let’s start!

A Utility Token vs. a Company Share: what is the difference?

It is probably fair to say that many people involved in the crypto space are unfamiliar with certain key financial terms or concepts, simply because finance is not necessarily everyone’s background (and that is absolutely fine!). In addition, Digital Assets bring some very novel concepts, which means that everyone has to adapt in any case.
Therefore, I suggest we start with a comparison of the characteristics underpinning the QNT Utility Token and a Quant Network Company Share (as you may know, the Company Shares are currently privately held by the Quant Network founders). I believe it is important to look at this comparison for two reasons:
  1. Most people are familiar with regular Company Shares because they have been traded for decades, and it is often asked how Utility Tokens compare.
  2. Quant Network have announced a plan to raise capital to grow their business further (in the September 2019 Forbes article which you can find here). Therefore, regardless of whether the Share Offering is made public or private, I presume the community will want to better understand how things compare and the different dynamics behind each instrument.
So where does the QNT Utility Token sit in Quant Network company and how does it compare to a Quant Network Company Share? This is how it looks:
https://preview.redd.it/zgidz8ed74y31.png?width=1698&format=png&auto=webp&s=54acd2def0713b67ac7c41dae6c9ab225e5639fa
What is on the right hand side of a balance sheet is the money a company has, and what is on the left hand side is how it uses it. Broadly speaking, the money the company has may come from the owners (Equity) or from the creditors (Debt). If I were to apply these concepts to an individual (you!), “Equity” is your net worth, “Debt” is your mortgage and other debt, and “Assets” is your house, car, savings, investments, crypto, etc.
As you can see, a Company Share and a Utility Token are found in different parts of the balance sheet — and that, in itself, is a major difference! They indeed serve two very different purposes:
  • Company Shares: they represent a share of a company’s ownership, meaning that you actually own [X]% of the company ([X]% = Number of shares you possess / Total number of shares) and hence [X]% of the company’s assets on the left hand side of the balance sheet.
  • Utility Tokens: they are keys to access a given platform (in our case, Quant Network’s Operating System: Overledger) and they can serve multiple purposes as defined by their Utility Document (in QNT’s case, the latest V0.3 version can be found here).
As a consequence, as a Company Shareholder, you are entitled to receive part or all of the profits generated by the company (as the case may arise) and you can also take part in the management decisions (indeed, with 0.00000001% of Apple shares, you have the corresponding right to vote to kick the CEO out if you want to!).
On the other hand, as a Utility Token holder, you have no such rights related to the company’s profits or management, BUT any usage of the platform has to go through the token you hold — and that has novel, interesting facets.

A Utility Token vs. a Company Share: what happens in practice?

Before we dig further, let’s now remind ourselves of the economic utilities of the QNT token (i.e. in addition to signing and encrypting transactions):
  1. Licences: a licence is mandatory for anyone who wishes to develop on the Overledger platform. Enterprises and Developers pay Quant Network in fiat money and Quant Treasury subsequently sets aside QNT tokens for the same amount (a diagram on how market purchases are performed can be found on the Overledger Treasury page here). The tokens are locked for 12 months, and the current understanding is that the amount of tokens locked is readjusted at each renewal date to the prevailing market price of QNT at the time (this information is not part of the Utility Token document as of now, but it was given in a previous Telegram AMA so I will assume it is correct pending further developments).
  2. Usage: this relates to the amount of Overledger read and write activity performed by clients on an ongoing basis, and also to the transfer of Digital Assets from one chain to another, and it follows a similar principle: fiat money is received by Quant Network, and subsequently converted in QNT tokens (these tokens are not locked, however).
  3. Gateways: information about Gateways has been released through the Overledger Network initiative (see dedicated website here), and we now know that the annual cost for running a Gateway will be 500 QNT whilst Gateway holders will receive a percentage of transaction fees going through their setup.
  4. Minimum holding amounts: the team has stated that there will be a minimum QNT holding amount put in place for every participant of the Overledger ecosystem, although the details have not been released yet.
That being said, it now becomes interesting to illustrate with indicative figures what actually happens as Licences, Usage and Gateways are paid for and Quant Network company operates. The following diagram may help in this respect:
Arbitrary figures from myself (i.e. no currency, no unit), based on an indicative 20% Net Income Ratio and a 40% Dividend yield
We have now two different perspectives:
  • On the right hand side, you see the simplified Profit & Loss account (“P&L”) which incorporates Total Revenues, from which costs and taxes are deducted, to give a Net Income for the company. A share of this Net Income may be distributed to Shareholders in the form of a Dividend, whilst the remainder is accounted as retained profits and goes back to the balance sheet as Equity to fund further growth for instance. Importantly, the Dividend (if any) is usually a portion of the Net Income so, using an indicative 40% Dividend yield policy, shareholders receive here for a given year 80 out of total company revenues of 1,000.
  • On the left hand side, you see the QNT requirements arising from the Overledger-related business activity which equal 700 here. Note that this is only a portion of the Total Revenues (1,000) you can see on the right hand side, as the team generates income from other sources as well (e.g. consultancy fees) — but I assume Overledger will represent the bulk of it since it is Quant Network’s flagship product and focus. In this case, the equivalent fiat amount of QNT tokens represents 700 (i.e. 100% of Overledger-related revenues) out of the company’s Total Revenues of 1,000. It is to be noted that excess reserves of QNT may be sold and generate additional revenues for the company, which would be outside of the Overledger Revenues mentioned above (i.e. they would fall in the “Other Revenues” category).
A way to summarise the situation from a very high level is: as a Company Shareholder you take a view on the company’s total profits whereas as a Utility Token holder you take a view on the company’s revenues (albeit Overledger-related).
It is however too early to reach any conclusion, so we now need to dig one level deeper again.

More considerations around Company Shares

As we discussed, with a Company Share, you possess a fraction of the company’s ownership and hence you have access to profits (and losses!). So how do typical Net Income results look in the technology industry? What sort of Dividend is usually paid? What sort of market valuations are subsequently achieved?
Let’s find out:
https://preview.redd.it/eua9sqlt74y31.png?width=2904&format=png&auto=webp&s=3500669942abf62a0ea1c983ab3cea40552c40d1
As you can see, the typical Net Income Ratio varies between around 10% and 20% in the technology/software industry (using the above illustrated peer group). The ratio illustrates the proportion of Net Income extracted from Revenues.
In addition, money is returned to Company Shareholders in the form of a Dividend (i.e. a portion of the Net Income) and in the form of Share repurchases (whereby the company uses its excess cash position to buy back shares from Shareholders and hence diminish the number of Shares available). A company may however prefer to not redistribute any of the profits, and retain them instead to fund further business growth — Alphabet (Google) is a good example in this respect.
Interestingly, as you can see on the far right of the table, the market capitalisations of these companies reflect high multiples of their Net Income as investors expect the companies to prosper in the future and generate larger profits. If you wished to explore these ideas further, I recommend also looking into the Return on Equity ratio which takes into account the amount of resources (i.e. Capital/Equity) put to work to generate the companies’ profits.
It is also to be noted that the number of Company Shares outstanding may vary over time. Indeed, aside from Share repurchases that diminish the number of Shares available to the market, additional Shares may be issued to raise additional funds from the market hence diluting the ownership of existing Shareholders.
Finally, (regular) Company Shares are structured in the same way across companies and industries, which brings a key benefit of having them easily comparable/benchmarkable against one another for investors. That is not the case for Utility Tokens, but they come with the benefit of having a lot more flexible use cases.

More considerations around the QNT token

As discussed, the Utility Token model is quite novel and each token has unique functions designed for the system it is associated with. That does not make value assessment easy, since all Utility Tokens are different, and this is a further reason to have a detailed look into the QNT case.
https://preview.redd.it/b0xe0ogw74y31.png?width=1512&format=png&auto=webp&s=cece522cd7919125e199b012af41850df6d9e9fd
As a start, all assets that are used in a speculative way embed two components into their price:
A) one that represents what the asset is worth today, and
B) one that represents what it may be worth in the future.
Depending on whether the future looks bright or not, a price premium or a price discount may be attached to the asset price.
This is similar to what we just saw with Company Shares valuation multiples, and it is valid across markets. For instance, Microsoft generates around USD 21bn in annual Net Income these days, but the cost of acquiring it entirely is USD 1,094bn (!). This speculative effect is particularly visible in the crypto sector since valuation levels are usually high whilst usage/adoption levels are usually low for now.
So what about QNT? As mentioned, the QNT Utility model has novel, interesting facets. Since QNT is required to access and use the Overledger system, it is important to appreciate that Quant Network company has three means of action regarding the QNT token:
  1. MANAGING their QNT reserves on an ongoing basis (i.e. buying or selling tokens is not always automatic, they can allocate tokens from their own reserves depending on their liquidity position at any given time),
  2. BUYING/RECEIVING QNT from the market/clients on the back of business activity, and
  3. SELLING QNT when they deem their reserves sufficient and/or wish to sell tokens to cover for operational costs.
Broadly speaking, the above actions will vary depending on business performance, the QNT token price and the Quant Network company’s liquidity position.
We also have to appreciate how the QNT distribution will always look like, it can be broken down as follows:
https://preview.redd.it/f20h7hvz74y31.png?width=1106&format=png&auto=webp&s=f2f5b63272f5ed6e3f977ce08d7bae043851edd1
A) QNT tokens held by the QNT Community
B) QNT tokens held by Quant Network that are locked (i.e. those related to Licences)
C) QNT tokens held by Quant Network that are unlocked (i.e. those related to other usage, such as consumption fees and Gateways)
D) the minimum QNT amount held by all users of the platform (more information on this front soon)
So now that the situation is set, how would we assess Quant Network’s business activity effect on the QNT token?
STEP 1: We would need to define the range of minimum/maximum amounts of QNT which Quant Network would want to keep as liquid reserves (i.e. unlocked) on an ongoing basis. This affects key variables such as the proportion of market purchases vs. the use of their own reserves, and the amount of QNT sold back to the market. Also, interestingly, if Quant Network never wanted to keep less than, for instance, 1 million QNT tokens as liquid reserves, these 1 million tokens would have a similar effect on the market as the locked tokens because they would never be sold.
STEP 2: We would need to define the amount of revenues that are related to QNT. As we know, Overledger Licences, Usage and Gateways generate revenues converted into QNT (or in QNT directly). So the correlation is strong between revenues and QNT needs. Interestingly, the cost of a licence is probably relatively low today in order to facilitate adoption and testing, but it will surely increase over time. The same goes for usage fees, especially as we move from testing/pilot phases to mass implementation. The number of clients will also increase. The Community version of Overledger is also set to officially launch next year. More information on revenue potential can be found later in this article.
STEP 3: We would need to define an evolution of the QNT token price over time and see how things develop with regards to Quant Network’s net purchase/sale of tokens every month (i.e. tokens required - tokens sold = net purchased/sold tokens).
Once assumptions are made, what do we observe?
In an undistorted environment, there is a positive correlation between Quant Network’s QNT-related revenues and the market capitalisation they occupy (i.e. the Quant Network share of the token distribution multiplied by the QNT price). However, this correlation can get heavily twisted as the speculative market prices a premium to the QNT price (i.e. anticipating higher revenues). As we will see, a persistent discount is not really possible as Quant Treasury would mechanically have to step in with large market purchases, which would provide strong support to the QNT price.
In addition, volatility is to be added to the equation since QNT volatility is likely to be (much) higher than that of revenues which can create important year-on-year disparities. For instance, Quant Treasury may lock a lot of tokens at a low price one year, and be well in excess of required tokens the next year if the QNT token price has significantly increased (and vice versa). This is not an issue per se, but this would impact the amount of tokens bought/sold on an ongoing basis by Quant Treasury as reserves inflate/deflate.
If we put aside the distortions created by speculation on the QNT price, and the subsequent impact on the excess/deficiency of Quant Network token reserves (whose level is also pro-actively managed by the company, as previously discussed), the economic system works as follows:
High QNT price vs. Revenue levels: The value of reserves is inflated, fewer tokens need to be bought for the level of revenues generated, Quant Treasury provides low support to the QNT price, its share of the token distribution diminishes.
Low QNT price vs. Revenue levels: Reserves run out, a higher number of tokens needs to be bought for the level of revenues generated, Quant Treasury provides higher support to the QNT price, its share of the token distribution increases.
Summary table:
https://preview.redd.it/q7wgzpv384y31.png?width=2312&format=png&auto=webp&s=d8c0480cb34caf2e59615ec21ea220d81d79b153
The key here is that, whatever speculation on future revenue levels does to the token in the first place, if the QNT price was falling and reaching a level that does not reflect the prevailing revenue levels of Overledger at a given time, then Quant Treasury would require a larger amount of tokens to cover the business needs which would mean the depletion of their reserves, larger purchases from the market and strong support for the QNT price from here. This is the safety net we want to see, coming from usage! Indeed, in other words, if the QNT price went very high very quickly, Quant Treasury may not be seen buying much tokens since their reserves would be inflated BUT that fall back mechanics purely based on usage would be there to safeguard QNT holders from the QNT price falling below a certain level.
I would assume this makes sense for most, and you might now wonder why have I highlighted the bottom part about the token distribution in red? That is because there is an ongoing battle between the QNT community and Quant Treasury — and this is very interesting.
The ecosystem will show how big a share is the community willing to let Quant Network represent. The community actually sets the price for the purchases, and the token distribution fluctuates depending on the metrics we discussed. An equilibrium will be formed based on the confidence the market has in Quant Network’s future revenue generation. Moreover, the QNT community could perceive the token as a Store of Value and be happy to hold 80/90% of all tokens for instance, or it could perceive QNT as more dynamic or risky and be happy to only represent 60/70% of the distribution. Needless to say that, considering my previous articles on the potential of Overledger, I think we will tend more towards the former scenario. Indeed, if you wished to store wealth with a technology-agnostic, future proof, globally adopted, revenue-providing (through Gateways) Network of Networks on which most of the digitalised value is flowing through — wouldn’t you see QNT as an appealing value proposition?
In a nutshell, it all comes down to the Overledger revenue levels and the QNT holders’ resistence to buy pressure from Quant Treasury. Therefore, if you are confident in the Overledger revenue generation and wish to see the QNT token price go up, more than ever, do not sell your tokens!
What about the locked tokens? There will always be a certain amount of tokens that are entirely taken out of circulation, but Quant Network company will always keep additional unlocked tokens on top of that (those they receive and manage as buffer) and that means that locked tokens will always be a subset of what Quant Network possesses. I do not know whether fees will primarily be concentrated on the licencing side vs. the usage side, but if that were to be the case then it would be even better as a higher amount of tokens would be taken out of circulation for good.
Finally, as long as the company operates, the revenues will always represent a certain amount of money whereas this is not the case for profits which may not appear before years (e.g. during the first years, during an economic/business downturn, etc.). As an illustration, a company like Uber has seen vast increases in revenues since it launched but never made any profit! Therefore, the demand for the QNT token benefits from good resilience from that perspective.
Quant Network vs. QNT community — What proportion of the QNT distribution will each represent?

How much revenues can Overledger generate?

I suggest we start with the basis of what the Quant Network business is about: connecting networks together, building new-generation hyper-decentralised apps on top (called “mApps”), and creating network effects.
Network effects are best defined by Metcalfe’s law which states: “the effect of a telecommunications network is proportional to the square of the number of connected users of the system” (Source: Wikipedia). This is illustrated by the picture below, which demonstrates the increasing number of possible connections for each new user added to the network. This was also recently discussed in a YouTube podcast by QNT community members “Luke” and “Ghost of St. Miklos” which you can watch here.
Source: applicoinc.com
This means that, as Overledger continues to connect more and more DLTs of all types between themselves and also with legacy systems, the number of users (humans or machines) connected to this Network of Networks will grow substantially — and the number of possible connections between participants will in turn grow exponentially. This will increase the value of the network, and hence the level of fees associated with getting access to it. This forms the basis of expected, future revenue generation and especially in a context where Overledger remains unique as of today and embraced by many of the largest institutions in the world (see the detailed summary on the matter from community member “Seq” here).
On top of this network, multi-chain hyper-decentralised applications (‘mApps’) can be built — which are an upgrade to existing dApps that use only one chain at a time and hence only benefit from the user base and functionalities of the given chain. Overledger mApps can leverage on the users and abilities of all connected chains at the same time, horizontal scaling, the ability to write/move code in any language across chains as required, write smart contracts on blockchains that do not support them (e.g. Bitcoin), and provide easier connection to other systems. dApps have barely had any success so far, as discussed in my first article, but mApps could provide the market with the necessary tools to build applications that can complement or rival what can be found on the Apple or Google Play store.
Also, the flexibility of Overledger enables Quant Network to target a large number of industries and to connect them all together. A sample of use cases can be found in the following illustration:
https://preview.redd.it/th8edz5b84y31.png?width=2664&format=png&auto=webp&s=105dd4546f8f9ab2c66d1a5a8e9f669cef0e0614
It is to be noted that one of the use cases, namely the tokenisation of the entire world’s assets, represents a market worth hundreds of trillions of USD and that is not even including the huge amount of illiquid assets not currently traded on traditional Capital Markets which could benefit from the tokenisation process. More information on the topic can be found in my previous article fully focused on the potential of Overledger to capture value from the structural shift in the world’s assets and machine-related data/value transfers.
Finally, we can look at what well established companies with a similar technology profile have been able to achieve. Overledger is an Operating System for DLTs and legacy systems on top of which applications can be built. The comparison to Microsoft Windows and the suite of Microsoft Software running on top (e.g. Microsoft Office) is an obvious one from that perspective to gauge the longer term potential.
As you can see below, Microsoft’s flagship softwares such as Windows and Office each generate tens of billions of USD of revenues every year:
Source: Geekwire
We can also look at Oracle, the second largest Enterprise software company in the world:
Source: Statista
We can finally look at what the Apple store and the Google Play store generate, since the Quant Network “mApp store” for the community side of Overledger will look to replicate a similar business model with hyper-decentralised applications:
Source: Worldwide total revenue by app store, 2018 ($bn)
The above means total revenues of around USD 70bn in 2018 for the Apple store and Google Play store combined, and the market is getting bigger year-on-year! Also, again, these (indicative!) reference points for Overledger come in the context of the Community version of the system only, since the Enterprise version represents a separate set of verticals more comparable to the likes of Microsoft and Oracle which we just looked at.

Conclusion

I hope this article helped shed further light on the QNT token and how the various market and business parameters will influence its behavior over time, as the Quant Network business is expected to grow exponentially in the coming years.
In the recent Forbes interview, Quant Network’s CEO (Gilbert Verdian) stated : “Our potential to grow is uncapped as we change and transform industries by creating a secure layer between them at speed. Our vision is to build a mass version of what I call an internet of trust, where value can be securely transferred between global partners not relying on defunct internet security but rather that of blockchain.”.
This is highly encouraging with regards to business prospects and also in comparison to what other companies have been able to achieve since the Web as we know it today emerged (e.g. Microsoft, Google, Apple, etc.). The Internet is now entering a new phase, with DLT technology at its core, and Overledger is set to be at the forefront of this new paradigm which will surely offer a vast array of new opportunities across sectors.
I believe it is an exciting time for all of us to be part of the journey, as long as any financial commitment is made with a good sense of responsibility and understanding of what success comes down to. “Crypto” is still immature in many respects, and the emergence of a dedicated regulatory framework combined with the expected gradual, selective entrance of institutional money managers will hopefully help shed further light and protect retail token holders from the misunderstandings, misinformation and misconduct which too many have suffered from in the last years.
Thanks for your time and interest.
Appendix:
First article: “The reasons why Quant Network (QNT) will rise to the Top of the crypto sphere in the coming months”
Second article: “The potential of Quant Network’s technology to capture value from the structural shift in the World’s assets and machine-related data/value transfers”
October 2019 City AM interview of Gilbert Verdian (CEO): Click here
October 2019 Blockchain Brad interview of Gilbert Verdian (CEO): Click here
July 2019 Blockchain Brad interview of Gilbert Verdian (CEO): Click here
February 2019 Blockchain Brad interview of Gilbert Verdian (CEO): Click here
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About the original author of the article:
My name is David and I spent years in the Investment Banking industry in London. I hold QNT tokens and the above views are based on my own thoughts and research only. I am not affiliated with the Quant Network team in any way. This is not investment advice, please do your own research and understand what you are buying before doing so. It is also my belief that more than 90% of all other crypto projects will fail because what matters is what is getting adopted; please do not put more money at risk than you can afford to lose.
submitted by mr_sonic to CryptoCurrency [link] [comments]

Humble guide of an average player, for discouraged players

-= Version 2.0 : Thank one million times to Iagolan for his great help on translation ! =-
https://reddit.com/link/aswvv7/video/omzaoeb35sh21/player
I'm sharing this little collection of funny nape-shots mainly to give a general overview of the subject. Also to show you how I die the majority of the time as 100% solo player. No tears, except maybe for the naked-high-ping-players I've missed aside the truck lol
This post is all about the pleasure extracted from the game's mechanisms and nothing else. If you’re looking for information to transform yourself into an absolute God of Tarkov than you’ve already failed, and you're wasting your precious time reading this post.
Also, I want to share my love for the work done at many levels in this game. Instead pushing you to "bypass" it at any cost, then only enjoy maybe 10% of the game at the price of making it a repetitive task.
I want to dedicate this post mostly to discouraged players that have difficulties finding their way in this game. I promise you that when you fully understand how this game is built, the pleasure will be guaranteed, no matter your stats. And by that I don't mean "how to abuse it" in every single way possible.
I will start with :

A list of decent Warnings


Number 1
Other people’s stories of what happened on their raids should be taken with a grain of salt. They are often blown out of proportion.
By default, I don't take anything seriously until I see a video or something, because obviously in game it's rare to encounter what all these loud people describe. It creates a distortion of reality than can be discouraging at the beginning.
And in Tarkov, fake advice to create free kills in hot spots to farm are also not uncommon. It's easy to fall in this trap when you’re new, and I've suffered nightmare raids myself until I became less naive. I suppose that’s why BSG have created Sherpa programs etc ...
Stay rational, and eventually ask a Sherpa. I've never tried this program myself but i've encountered some, and they are valuable players truly involved in their role of bodyguards and mentors. It's free and smart, so why not give it a try !

Number 2
Streamers/youtubers. I will take care and I will try to be short because in Tarkov they are often a subject of devotion. I can respect that btw but it's sometimes hard to be critical for this unique reason.
BUT let's be real, they are professionals paid/sponsored/whatever to produce spectacular shows. So by definition the style of their gameplay (in one way or another, highly dependent on their audience) and their (daily) training don't accurately represent the average player.
Add to it than it's a competitive sector : you have to be growing or you're failing. Instead of using their shows as reference, think of them as an entertainment. It is also not really a good way to find ... his way. At my low level they only made me hate the Labs and to never play this map when seeing the gameplay involved. Behind this very personal glimpse into what I'm seeking in this game, there is a partial answer for those that are feeling lost : respect your own tastes first and always remember what kind of experience you want to have in the game. No one can tell you the right way to play this game as long as your behavior is clean and not destructive for the future of this game.

Number 3
You will read tons of criticisms of the game's mechanisms, tons of absolute rules on ammo, armors, AI ... the list is infinite and it will never end. Nothing abnormal by the way.
But if you start to take them all seriously in your own gameplay, you're just doomed. No joke. The same user can say that he has too much money and that it's boring, and the next hour complain that his "most expensive armor of the game" is not strong enough. You can extend that idea to the AI and everything else lol And here is the trap, everyone is trying to have more advantages in this punishing game, and it often creates paradoxical equations that are hard to decypher.
Don't forget what kind of player you really are, and that this beautiful game can truly permit every play style.

There is no way to best start in this game. And it's splendid.


Most of you are coming from previous FPS, and you have by definition a profile. Instead trying to make a list, I will more share what kind of player I am and how I've made the adaptation to Tarkov.
At the moment I'm a stupid wardog on a quest for excitement. In team I mostly recon and push opportunities. Just like this stupid dog running after the sheep to drive them to a point.
So the movement penalty has a bigger importance for me than anything else :
- I choose the bag with the least penalties, and I limit the size to what I really need. And when I just need blood, I play without bag.
- I choose the armor with the best points/price/penalty delta for the purpose (stupid rush, sneaky loot, quest, tourism ...)
- I choose the most reactive weapons, so in a way I keep them light and simple to use.
- I'm not a "pinatas" at all, even if i loot constantly
I respect the player I am and I'm searching within the game's mechanisms for the best way to express it. I never fighting against myself to push myself to play in a way than is not natural.
And this is the most essential starting point in this punishing game : to be the most natural to your own style. The more you fight against your instincts, the less you will learn from your nape-shots (lol) but also the less your raids will have meaning.
Remembering the player you are is imho more useful in this specific game than driving an avatar in raid that is totally opposite of your style.

Offline training : demonstration

https://youtu.be/cao8q_UINXI

Also, that's how I start my "day". I never launch a PMC raid “cold". I alternate lucrative runs with my skav and offline training until I feel I'm ready to die with honor lol
My suggestion is to make your own personalized training. You're the only one who knows what will work the best. But never choose the easy way, farming is just pointless. You're bad at medics management ? Go in raid with no medics; use the only the ones you loot. You're too addicted to the full auto mode? Go in training with only one additional mag. etc ... Be smart and generate the worst situation for you. Most of the time these weakness are just a question of understanding, and often competitive advantages will develop when you work on them.

The settings of the "mission"
- no armor, no helmet, no face shield
- of course, the weapon you want to make more natural to use : only the mods that you've judged necessary, no aim-assistance at all
- all medic types are ok, but don't load your avatar like a hospital
- manage your ammo like you're doing a normal PMC raid, but try to limit the amount of your mags to the strict minimum
- no pressure, try to focus on the point you should work on (cover, aim, moves, map knowledge etc ...)
- I think personally that Factory is perfect for this because it's fast to load, fast to do and frantic. But I also train in other maps by function of my needs.

The content of the "mission"
- you have to loot the whole map : all boxes, vests, spawn locations. It's important to keep the training activity interesting.
- you have to loot all bots you've killed and consider it as "loot training". Work the speed of your analysis : name of ammos, weapons, compatible weapons, mods etc ...
- food and drinks are also tactical items, it's less obvious with bots but while in raid a single can of tar cola can turn you from fake innocent prey to a vicious predator. Tips lol : when you hear someone that is using loud drinks and food in Interchange, 75% of the time it's me trying to attract a geared pinata in search of an easy free kill ^^
- one time through and if all loot spots are done, go to the exfil. The session is over.
- once you’ve mastered this type of training with the chosen weapon: don't heal your arms and let them become black. It will open a new training for this weapon : mastering it in the worst conditions for aiming. In this mode, you have to aim very fast and to can’t maintain your ADS for long : stamina management.
- once the "black arms training" is done, do the "black legs training". It also changes the manner you aim, and your moves become drastically more annoying while you're aiming. It's also the perfect context to work on your hip fire skills. Don't worry, painkillers don't really affect the training and it helps you learn to memorize their timings (length of effects).
- Intensively use all type of injectors you find and learn to enjoy their bad side effects, and how to manage their timing.

The paradox of the Skav


I know that leveling your PMC is important to be more free in terms of modding and possibilities but your Skav is an easy, highly lucrative, beast. Not to use it is like shooting in yourself in the foot.
And the Skav's raids are excellent training. Not only because it permits you to learn the maps and the hot spots, but also because he spawns with a random set of which you have no control. It's not an easy mode at all, you have to understand it first.
When you spawn with a TOZ, two mags, no armor and no medic in the Shoreline village ... you can expect a challenge and you need to quickly kill someone with more handy equipment. Bot or not.
The most important to remember for these "unpopular" raids is the fact that it will help you to work on your adaptation to a given map. And that playing as a Skav mostly at the beginning :
- is not a shame at all due to the inherent difficulties of the random set
- is serious training to the map
To compensate the lack of leveling of your PMC, do the quests like crazy. First the ones involving only buying objects, then the ones involving "place/hide/deliver" something in the map. Do it naked, by night if you can, without shame. You haven’t broken the gameplay at all, and you can expect cowards camping the quest spots in all maps. Just like the ones camping the exfils during at close to an hour in. So at least take a pistol with one spare mag but don't engage, only defend your escape in this case.
In closing, I'm now level 43 soon and I still use my skav like a slave. Especially when I'm working a weapon offline to find its best combo for a specific use. "One PMC raid, one skav raid at factory" is my daily routine now ^^

Basic considerations about weapons


Now we enter in the weapon's section, my favorite aspect of the game. And i will start with a very basic consideration. The models matter, yes, but the game's mechanisms are pushed so far than it doesn't matter in the way of most of online FPS. There is no linear and automatic increase of lethal potential, it's a fake idea. You can be a serious treat with any type of weapon.
1) Sort the weapons by the main ammo you should stock for it
Going in raid with a 9mm is absolutely not the same gameplay as with a 5.45, and this difference is the same with a 5.45 VS 7.62 or a 7.62 vs 5.56 weapon. If you play the same with all ammo, you already have a problem to fix there.
You have to adapt your style to the ammo used, to optimize the costs of your raids, but also your chances to survive.
In the same vein you would take the weapon with the bigger ammo stock first. Buying ammo must be considered only when you're at ease with your roubles and you have a margin of error that will not risk breaking the good equilibrium that you have found in raid or in offline trainings.
2) Feelings are everything
If you don't have the feel for a model of weapon in its original state, stock, it doesn’t make any sense to mod it to make it enjoyable. And I dare say that it's the worst habit you can make in this game. This is a devastated area at war, not a supermarket with magic credit cards.
I was tempted to give you a list of weapons but there’s no point. My feelings are not universal. Instead I will give you an effective way to find the ones that are made for you. And it's pretty simple and quick.
Play Skav until you have collected the majority of weapons of one class, without considering anything but the obligation to be absolutely not modded. At all. Eventually buy the missing ones, but don't be afraid, it's a good investment for later.
Launch an offline raid in Factory without any armor or helmet with Skavs "as online" for both options. High number and horde become quickly useless, and it's not especially harder.
Play the hard way, and feel the gun "as is". Do multiple offline raids with the same setup if necessary, some take time to understand. Give high attention to your scoreboard every single time to count the number of Skavs but also where they were hit (headshots, legs, arm, chest ...). It will inform you if you're able to improve quickly with this weapon or if it’s asking too much of yourself to be reactive in a PMC raid under stress.
Even if the weapon is known as the "best weapon in the universe", just sell it if you have a hard time improving with it from one offline raid to the next. Trust your feelings, and the scoreboard, first.
Once you have found the best weapon for you in each category of ammo, it's time to train your brain for real. Do one more offline raid in Factory, weapon not modded at all. Don't forget to loot everything offline, it not only triggers the bots but it also trains you to sounds and to loot safely.
When your favorite weapons become your best armor offline, you can consider that you're ready for a ride.

3) Iron sights are not your enemy. And they are free.
There are exceptions of course (making versatile a shotgun for long range on large maps, night vision etc ...) but iron sights are OP most of the time. They are not only a cost efficient way to increase the ergonomics and the reactivity, they also offer the best angle of vision of the game. No dead angle, minimal stutter when you're in the middle of a mess, natural feelings ... the advantages offered by stock sights are numerous. Not only to make your Skav op with all weapons he's looting on others skav ...

3) Modding should have a reason, the stats aren't everything.
It's a big temptation to mount everything possible on your favorite gun, and the best way to increase drastically the cost of your raids.
Most of the more common modding are in fact not so far from the no-modded state and it's easy to compare offline in a wall or something. You will generally get similar ergo and accuracy as a maxed out modded weapon, from a stock weapon while crouched. That’s the sad truth.
So, try to find a balance between what is necessary and what is optional.
You're broke or need money for quests? Only the necessary.
You're fine with your roubles? Will these options give you a real advantage in the battle ground for this raid?
Is it really necessary to mount this expensive AN/PEQ instead working more on your hip fire skills with this weapon?
etc ..
update/note/warning : Take the "AN/PEQ equation" as a radical and personnal image of the concept.

4) Ammos and the cost of the death
If you die with four mags full of expensive ammo, it's not an especially a good strategy. Minimize the number of mags and try to carry your expensive ammo in your secure container. Train your sense of timing to manually reload your mags in safe zones. I'm often nape-shooted when I engage a sexy target, but i never die when I refill my mags. And I often reload in plain action ^^
Similarly, how much will killing this Skav cost in ammos ? 10K ? 50K ? Is it really necessary to spray it ? If it's necessary, do you really play with the right weapon ?
All of that to say : integrate the ammo and the number of shots into the cost of your raids. Be smart and protective with your best bullets as well.

5) A dedicated I-case to bookmark your favorite weapons is your friend
Have you found the ultimate cost-effective mod for the AK74N ? Put it in your I-case and each time you need one, right click and use the "filter by item" on the mods like crazy. The gain of time and brain space is no joke. Add to it that with the levels you take as PMC, the costs will change and the growth in usefulness of this reference also.

Basic considerations about armors


What is the maximum armor points of this armor? Will repairing it will be more expensive than buying a new fresh one?
That’s a starting point on how you should consider armor. Taking into account that a gen4 or stronger will not protect you from a headshot, or from a bad decision (watch my video again ^^).
I don't suggest you copy my strategy but I will share it to show that you have to think about that too.
- Am i playing with a weapon I'm mastering?
Yes : class 4 is enough, No : gen4
- If I'm watching my roubles, is it the right moment to risk this raid with a weapon i'm not mastering and expensive armor ?
Yes : let's have fun, No : let's skav' a bit more with offline training in between
etc ...
I must add that I never buy helmets and headphones, but more cosmetic items for the head of my PMC.
It's a personal style, not a rule.
Headsets give me headache, don't correct the messy sound localization, and as a bonus make me less efficient during a safe run. Yes i know, my big collection of nape-shot will decrease with a more frequent use of headset, but to have a more secure shooting position against cowards would be more useful than to rely on an item I don't like to use.
Headshots are too rare for my PMC to justify an expensive helmet in all raids, and I've destroyed too many helmets with 7.62 (to preserve the armor to loot lol) to rely on it.
I would rather rely on movement and positioning, at the risk of being headshot more often, than increase the size of my head as a target. ^^

I will repeat how I rate the game mechanisms in term of fun and progression :
  1. My first armor is - the right weapon for the right action
  2. My second armor is - cover
  3. My third armor is - armor that permits me to escape alive from a situation I can't face

Basic tricks to maintain the flow


Now, I will share some random tricks I've discovered in playing, that are efficient and respectful of the game in same time. The alliance of both generate fun that is naturally renewed without much effort (well that's not true, the devs have stopped to have a social life for that lol)

The loot paradigm
My goal is not to be the one that has the most roubles in game, but the one that is having the most fun ^^ I don't play to be angry, sad, or to generate a negative stress. Only cheaters generate unplanned negative stress while I'm playing, but that's another story and it's never for the gear I lost this way, but for the reputation of the game at long term.
So, the current strategy is to run hot spots (keys, quest items etc ...) no matter what and no matter the localization of the spawn. Naked or not, racing speed hackers or not, try to be the first one there. And the main reason I find battles lately is this concentration. I find it a sad and boring way to play personally, but it is allowed. At least it permits me to never need to search for groups when I want a bloody fight, I know right where to find them.
On my side I just loot everything, at this point I have two lucky skav box that I constantly fill with everything. Why? Because the "required search" right-click is my friend. There are tons of valuable items than you can get this way, to resell if it's not your poison or to stack if you use them.
Even if I get tons of Mosins from my skav, I collect the car battery.
And ammo ... I'm just addicted. I collect everything to put in the 6 ammo boxes in my inventory. When the 7.62 box is full of LPS, when I'm not planning to play Mosin for a mission, or to annoy the full geared Factory's campers ... I sell them for a good price in one listing. And it quickly refills the rouble stash.
It's important to realize that everything could be useful to loot, and that someday it pay off.

The FLEA
The first thing to learn with the FLEA, is the right price of items at a given time. But also to know when it's strategic to buy in temporarily.
It's 2AM, you need bitcoins to trade for a weapon case or for a mission and the lowest price is in the 150K range? Why not wait for rush hour tomorrow afternoon and save maybe up to 30K-40K per bitcoin by being picky? For a weapon case it represents 270K to 360K of roubles not spent, so an OP 100% armor or 4 decently modded weapons at least.
For mods, the prices tend to be more stable and the sellers more specialized. And at the beginning it's more strategic to learn how to be lethal with stock weapons, and level up this way imho. Not only to save roubles, but also to wisely mod your weapons with a good reason to spend money behind. So you finally mastered the recoil of this AK without help ... maybe you will invest more in a nice scope or a silencer than in useless ergo/recoil mods ... etc ...
You see my point?
On the selling side, i've the tendency to go against the grain and to undercut all time. Sometimes ridiculously cheaper, like selling buckshot for 15 roubles each to empty my "sales" ammo box. Don't be sad for the extra money you don't make, because you will mostly sell items you got for free. The turn over of your sales is more important than the high margin you can made, because the goal is to sell everything before you can complete two raids.
Do your maths : do you prefer to sell 10 comtacs a day at 15K, or one per day at 30K ? ^^ It costs you only 6 matches of loot, and there are matches everywhere on the maps.
Last but not least, quickly bookmark in your head only the items than sell fast, and sell everything else to the traders directly. You don’t want your selling rate to increase slowly, so don't waste your time with items than will lock one slot longer than a raid at the begin.

The conclusion : offer the gameplay than you want to encounter

I know, there is a lot of boring players and exfil campers etc ... but even if what I say sounds harsh : don't be a useless player.
You can start to improve your gameplay even at your low level. Just like you're expecting from others. Without you, there is no gameplay.
You're a bit angry about the exfil campers? Invent a mission in your mind and be a crusader with your fearless Skav : suicide killing the campers lol It's not useless for others or for you, it will train your madness and your reflex aiming.
That’s just one example from thousands of possibilities, but never forget that no matter your level and skills, you can leverage the quality of systems in this game. Just like everyone else.
Now, as to stats, I will not say that it doesn’'t matter and that you can ignore it, but the reverse. These stats are the concrete representation of your new strategy and choices. But they don't have to be your goal in this game, ever. Just a way to judge you evolution and to make changes to your training to improve them.
I will dare to suggest a first decent goal to reach in Tarkov :
- A survival rate of 30% : yes it looks low like that but when you have reached this rate, you can consider that you're no longer an "innocent target" and that you're starting to be a threat.
- A stabilized kill / death ratio of 1.5 : it just means than you're not being farmed by others and it's good for the ego. It's time now to aim 2.0/2.5 and be proud to never die alone.

Side notes

I've totally avoided in the equation cheaters, bugs, destructive behaviors, and hardware requirements to be competitive, and the strategy to adopt in facing these problematics. My considerations are totally focused on the gameplay that you produce for yourself.
I hope it will help some to restrain their shame of failing to evolve in this game within one day, to be more free in their choices but also to give the game more of a chance. Pure players with pure intentions are always the most wanted in this type of game, everything else is about the time you give to yourself to improve and methods to do it. By playing a nightmare because you try to be a gamer that you're not, or having fun and enjoying the game as it was meant to be played, obviously with love imho.
Good luck !
submitted by nopanolator to EscapefromTarkov [link] [comments]

Bitcoin's market *price* is trying to rally, but it is currently constrained by Core/Blockstream's artificial *blocksize* limit. Chinese miners can only win big by following the market - not by following Core/Blockstream. The market will always win - either with or without the Chinese miners.

TL;DR:
Chinese miners should think very, very carefully:
The market will always win - with or without you.
The choice is yours.
UPDATE:
The present post also inspired nullc Greg Maxwell (CTO of Blockstream) to later send me two private messages.
I posted my response to him, here:
https://np.reddit.com/btc/comments/4ir6xh/greg_maxwell_unullc_cto_of_blockstream_has_sent/
Details
If Chinese miners continue using artificially constrained code controlled by Core/Blockstream, then Bitcoin price / adoption / volume will also be artificially constrained, and billions (eventually trillions) of dollars will naturally flow into some other coin which is not artificially constrained.
The market always wins.
The market will inevitably determine the blocksize and the price.
Core/Blockstream is temporarily succeeding in suppressing the blocksize (and the price), and Chinese miners are temporarily cooperating - for short-term, relatively small profits.
But eventually, inevitably, billions (and later trillions) of dollars will naturally flow into the unconstrained, free-market coin.
That winning, free-market coin can be Bitcoin - but only if Chinese miners remove the artificial 1 MB limit and install Bitcoin Classic and/or Bitcoin Unlimited.
Previous posts:
There is not much new to say here - we've been making the same points for months.
Below is a summary of the main arguments and earlier posts:
Previous posts providing more details on these economic arguments are provided below:
This graph shows Bitcoin price and volume (ie, blocksize of transactions on the blockchain) rising hand-in-hand in 2011-2014. In 2015, Core/Blockstream tried to artificially freeze the blocksize - and artificially froze the price. Bitcoin Classic will allow volume - and price - to freely rise again.
https://np.reddit.com/btc/comments/44xrw4/this_graph_shows_bitcoin_price_and_volume_ie/
Bitcoin has its own E = mc2 law: Market capitalization is proportional to the square of the number of transactions. But, since the number of transactions is proportional to the (actual) blocksize, then Blockstream's artificial blocksize limit is creating an artificial market capitalization limit!
https://np.reddit.com/btc/comments/4dfb3bitcoin_has_its_own_e_mc2_law_market/
(By the way, before some sophomoric idiot comes in here and says "causation isn't corrrelation": Please note that nobody used the word "causation" here. But there does appear to be a rough correlation between Bitcoin volume and price, as would be expected.)
The Nine Miners of China: "Core is a red herring. Miners have alternative code they can run today that will solve the problem. Choosing not to run it is their fault, and could leave them with warehouses full of expensive heating units and income paid in worthless coins." – tsontar
https://np.reddit.com/btc/comments/3xhejm/the_nine_miners_of_china_core_is_a_red_herring/
Just click on these historical blocksize graphs - all trending dangerously close to the 1 MB (1000KB) artificial limit. And then ask yourself: Would you hire a CTO / team whose Capacity Planning Roadmap from December 2015 officially stated: "The current capacity situation is no emergency" ?
https://np.reddit.com/btc/comments/3ynswc/just_click_on_these_historical_blocksize_graphs/
Blockstream is now controlled by the Bilderberg Group - seriously! AXA Strategic Ventures, co-lead investor for Blockstream's $55 million financing round, is the investment arm of French insurance giant AXA Group - whose CEO Henri de Castries has been chairman of the Bilderberg Group since 2012.
https://np.reddit.com/btc/comments/47zfzt/blockstream_is_now_controlled_by_the_bilderberg/
Austin Hill [head of Blockstream] in meltdown mode, desperately sending out conflicting tweets: "Without Blockstream & devs, who will code?" -vs- "More than 80% contributors of bitcoin core are volunteers & not affiliated with us."
https://np.reddit.com/btc/comments/48din1/austin_hill_in_meltdown_mode_desperately_sending/
Be patient about Classic. It's already a "success" - in the sense that it has been tested, released, and deployed, with 1/6 nodes already accepting 2MB+ blocks. Now it can quietly wait in the wings, ready to be called into action on a moment's notice. And it probably will be - in 2016 (or 2017).
https://np.reddit.com/btc/comments/44y8ut/be_patient_about_classic_its_already_a_success_in/
Classic will definitely hard-fork to 2MB, as needed, at any time before January 2018, 28 days after 75% of the hashpower deploys it. Plus it's already released. Core will maybe hard-fork to 2MB in July 2017, if code gets released & deployed. Which one is safer / more responsive / more guaranteed?
https://np.reddit.com/btc/comments/46ywkk/classic_will_definitely_hardfork_to_2mb_as_needed/
"Bitcoin Unlimited ... makes it more convenient for miners and nodes to adjust the blocksize cap settings through a GUI menu, so users don't have to mod the Core code themselves (like some do now). There would be no reliance on Core (or XT) to determine 'from on high' what the options are." - ZB
https://np.reddit.com/btc/comments/3zki3h/bitcoin_unlimited_makes_it_more_convenient_fo
BitPay's Adaptive Block Size Limit is my favorite proposal. It's easy to explain, makes it easy for the miners to see that they have ultimate control over the size (as they always have), and takes control away from the developers. – Gavin Andresen
https://np.reddit.com/btc/comments/40kmny/bitpays_adaptive_block_size_limit_is_my_favorite/
More info on Adaptive Blocksize:
https://np.reddit.com/bitcoin+btc/search?q=adaptive&restrict_sr=on&sort=relevance&t=all
Core/Blockstream is not Bitcoin. In many ways, Core/Blockstream is actually similar to MtGox. Trusted & centralized... until they were totally exposed as incompetent & corrupt - and Bitcoin routed around the damage which they had caused.
https://np.reddit.com/btc/comments/47735j/coreblockstream_is_not_bitcoin_in_many_ways/
Satoshi Nakamoto, October 04, 2010, 07:48:40 PM "It can be phased in, like: if (blocknumber > 115000) maxblocksize = largerlimit / It can start being in versions way ahead, so by the time it reaches that block number and goes into effect, the older versions that don't have it are already obsolete."
https://np.reddit.com/btc/comments/3wo9pb/satoshi_nakamoto_october_04_2010_074840_pm_it_can/
Theymos: "Chain-forks [='hardforks'] are not inherently bad. If the network disagrees about a policy, a split is good. The better policy will win" ... "I disagree with the idea that changing the max block size is a violation of the 'Bitcoin currency guarantees'. Satoshi said it could be increased."
https://np.reddit.com/btc/comments/45zh9d/theymos_chainforks_hardforks_are_not_inherently/
"They [Core/Blockstream] fear a hard fork will remove them from their dominant position." ... "Hard forks are 'dangerous' because they put the market in charge, and the market might vote against '[the] experts' [at Core/Blockstream]" - ForkiusMaximus
https://np.reddit.com/btc/comments/43h4cq/they_coreblockstream_fear_a_hard_fork_will_remove/
Mike Hearn implemented a test version of thin blocks to make Bitcoin scale better. It appears that about three weeks later, Blockstream employees needlessly commit a change that breaks this feature
https://np.reddit.com/btc/comments/43iup7/mike_hearn_implemented_a_test_version_of_thin/
This ELI5 video (22 min.) shows XTreme Thinblocks saves 90% block propagation bandwidth, maintains decentralization (unlike the Fast Relay Network), avoids dropping transactions from the mempool, and can work with Weak Blocks. Classic, BU and XT nodes will support XTreme Thinblocks - Core will not.
https://np.reddit.com/btc/comments/4cvwru/this_eli5_video_22_min_shows_xtreme_thinblocks/
More info in Xtreme Thinblocks:
https://np.reddit.com/bitcoin+btc/search?q=xtreme+thinblocks&restrict_sr=on&sort=relevance&t=all
4 weird facts about Adam Back: (1) He never contributed any code to Bitcoin. (2) His Twitter profile contains 2 lies. (3) He wasn't an early adopter, because he never thought Bitcoin would work. (4) He can't figure out how to make Lightning Network decentralized. So... why do people listen to him??
https://np.reddit.com/btc/comments/47fr3p/4_weird_facts_about_adam_back_1_he_neve
I think that it will be easier to increase the volume of transactions 10x than it will be to increase the cost per transaction 10x. - jtoomim (miner, coder, founder of Classic)
https://np.reddit.com/btc/comments/48gcyj/i_think_that_it_will_be_easier_to_increase_the/
Spin-offs: bootstrap an altcoin with a btc-blockchain-based initial distribution
https://bitcointalk.org/index.php?topic=563972.480
More info on "spinoffs":
https://duckduckgo.com/?q=site%3Abitco.in%2Fforum+spinoff
submitted by ydtm to btc [link] [comments]

The intrinsic value of a NEO share

The question of what the intrinsic value of a NEO share has come up in the Reddit on many occasions usually in the context of someone talking about GAS having more intrinsic value than NEO because GAS has to be literally spent for smart contracts to execute on the system -- with the whole larger debate revolving around what the GAS to NEO ratio will be in the future. The question of the intrinsic value of NEO is actually interesting to me because while I had been trading stocks for some time I had never thought about the fundamental basis of a stock share (just as I never thought about the fundamental basis of monetary systems before I started learning about Bitcoin). This post is as much for me to digest things as it is for you all.
 
What is the intrinsic value of a share?
 
A stock share is part ownership of an entity. The intrinsic monetary reason why someone would want to have part ownership of anything is to get a share of the profits that the entity makes. You might also want to have part ownership of something for non-financial reasons such as believing in the entity’s mission, etc but we’ll focus on the economic part.
 
For centralized entities: the entity takes in money from customers, pays its expenses and is left with profit. This profit is then distributed to shareholders in the form of dividends.
 
What about companies that don’t pay dividends? Basically what those companies are doing are saying to their investors “hey we can all make way more money in the long run if we take the profit money we made now and reinvest it back into the business.” The intrinsic value of the shares still comes from the profit in real cash that can be made from the share it’s just that this profit is being deferred (sometimes for decades / possibly indefinitely).
 
What is the intrinsic value of a NEO?
 
NEO has a primary purpose & secondary role
Primary Purpose: It provides you a share of the profits that NEO makes
Secondary Role: It provides you a proportion of all GAS currency printed which ends up being 1 GAS per NEO over the 22 years that it will take to mint all the GAS.
 
These two things are entirely independent. The reason why NEO holders get a proportion of all GAS currency is as a solution to the problem of “how do we initially distribute money in a decentralized system?” The solution to that question could have been theoretically different. For example NEO Core could have decided that GAS is distributed to all bookkeeping nodes, or through the act of submitting code, or through sharing news about NEO on your Facebook page.
 
The point here is that even if NEO never entitled you to freshly minted GAS it would still have intrinsic value. However these days because profits still haven’t begun and the GAS minting can be seen in our accounts everyone is fixated on NEO’s secondary role.
 
If the purpose of a NEO was only to mint a single GAS over a period of 22 years then it’d be a depreciating asset because when you trade the NEO you’re essentially selling it “used” with a portion of the 1 GAS it’s going to mint not included (that portion which you took when you were holding that NEO). And in 22 years that NEO would be entirely useless.
 
Luckily, NEO are shares so it works out differently. Note that there are many shares with amazing returns on the stock market and 0% of them have ever entitled you to newly printed fiat from central banks. The GAS minting is just an added bonus.
 
What will be the traded price of a NEO?
 
Suppose that in the year 2020, one billion dollars will be spent on service charges on the NEO platform. With 100 million NEO shares this means that each NEO share will have made 10 dollars in profit that specific year.
 
As a simplified example let’s assume that traders believe that NEO isn’t going to go up and down anymore but instead will remain completely static for the next 5 years and then die an abrupt death (and let’s ignore the GAS minting completely for this as well). Those traders will have to decide how much they are willing to pay for something that gives them 10 dollars a year consistently for 5 years. If you knew for a fact you could make a total of 50 bucks over those 5 years you could reasonably buy NEO for any number below 50 today and it’d be a profitable investment.
 
OK, but now let’s imagine a world where NEO doesn’t just make a static profit year over year. Let’s say that there were more and more smart contracts every single year and NEO just kept distributing more and more profits to NEO holders. Then as a trader you have to start betting on how much service fee money will be made in the future and how much more it is than the amount that is made now.
 
This brings us to Price to Earnings ratio (P/E). The E is the earnings per share that has already happened. In NEO’s case the earnings would be the amount we make off of service fees in a specific year. But someone buying a NEO share from you tomorrow can’t ever get that money. YOU got that money. They can only get whatever the earnings will be in the future and that’s what they are betting on. This betting leads to the Price (P).
 
Here are some price to earnings ratios (P/E) for some tech stocks:
 
Netflix (NFLX): 227.47 Facebook (FB): 37.47 Google (GOOG): 33.37 Microsoft (MSFT): 27.86
 
This means that for Netflix people are paying 227 times more for the stock as the entitled earnings for that share are today.
 
So as you can see it varies a lot and depends in large part on how much of its future potential the company investors think has already been scratched. For NEO we are currently not making any service fees yet so everything is speculative but even when we get going it’d be completely reasonable to see astronomical P/E ratios which wouldn’t indicate “overvalued” because the potential is barely scratched in the present and the value lies entirely in the future. On stock exchanges, companies only begin offering shares (IPO) once they are decently mature but in crypto we get to come in at the organization’s infancy so having unheard of P/E ratios will make perfect sense in the first few years of any crypto share.
 
If NEO becomes a mature 500 Billion market cap behemoth like Facebook (note that Bitcoin is only at 65 billion and the entire crypto market is at just 135.6 billion market cap today) then maybe we’d start settling into more reasonable 30x price to earnings ratios-- which by the way while normal for tech stocks are still really high for stocks in general.
 
To say the least I wouldn’t bet on any specific ratio between the value of NEO and GAS as GAS has the economics of a currency (How much usefulness can I get out of this for goods now?) vs the economics of a share (How much money can be made from this year over year?) which while having some overlap (How scarce will this asset be?) are just completely different things. That’s not even introducing that each NEO comes with a built in portion of a GAS and now my head hurts.
 
And likewise it's not insane to believe that a NEO can have a way higher share price than a Bitcoin has monetary value without NEO being more "mainstream" than a Bitcoin since shares by definition are more future focused than currencies. Not saying it will happen but crypto economics wouldn't collapse if it did and it wouldn't indicate that GAS would now become the number one cryptocurrency.
 
Hope you enjoyed.
submitted by max3pin to NEO [link] [comments]

What's more profitable? Mining gear vs inital BTC investment. A multivariable optimization problem

I originally posted this in /gpumining but I figured people here might get something out of it too since it relates very much to NiceHash
I'm sharing my own calculations here. I'm not asking anyone to answer the question for me, unless they feel like doing so. Scroll down for results/plots if tl;dr
I'm currently in a spot where I have a halfway decent desktop PC and I want to start mining cryptos, both in order to make extra money and for the fun of it. Although I think I would enjoy mining cryptocurrencies and the challenges associated with it, I also need to ask myself whether it is worth to invest the money in the extra gear, or am I better off just investing that money into bitcoin instead? Especially considering that mining is not as profitable as it used to be. I intend to get a feel for the problem by doing some calculations on my own instead of relying on the typical online ROI investment calculator as they don't really take the appreciating value of BTC into account. I'm specifically looking at these variables
1) Profits/day/GPU
2) How many GPU's to buy to maximize profits (this is not necessarily obvious as you'll see)
whereas the electricity and gear costs are assumed to be constant.
The specifics of my particular scenario are (that I think is pretty common for people with a gaming PC and haven't started hardcore mining yet):
Compared to investing those expenses straight in to bitcoin, are the two additional GPU's to my existing rig worth it? Is it worth investing in an additional dedicated mining rig and add as many GPU's as I see fit as well? For what ranges of profitability per GPU per day does it make sense to invest in additional mining gear?
For these calculations I make the following (somewhat arbitrary but hopefully reasonable) assumptions:
Results
3D plot
Since the profits depend on both the number of GPU's and the profit/day figures I decided to plot it as a 3D-surface: Results, 3D plot
The plot on the left is the profit made from investing in mining gear instead of an equivalent investment in bitcoin. The plot on the right is the total profit when only considering fiat money that doesn't change in value, which is what you'd typically consider.
2D plot
Results, 2D plot
This is the same results as the left plot in the above 3D plot but compressed into to the perhaps more familiar 2D graph environment.
What to make of this?
First of all it is trivial to conclude that I will make a return of my investment in fiat, no matter the configuration or the profit/day range. Even a pretty conservative $0.8/day pays off pretty decently. However this doesn't say anything about whether it's better than an initial bitcoin investment.
When considering the appreciating value of bitcoin, it gets a little more interesting. I can safely say that at the $/day profits that we get for a 1060 these days (around $0.9-$1.3) it would be a bad investment to buy an additional rig. However, if the profits were to go up to the +$2 range again I'd could start making bank by getting as many mining rigs as I possibly can. At +$1.4/day I might consider getting an additional two GPU's for my existing PC as can be seen in the 2D plot.
Looking at the above plots, at these currently low profit rates that we see today I'm better off letting my current 1060 mine away and invest the rest of the money in bitcoin.
Hopefully some of you might find this useful or enjoyable lol
submitted by skankysmurf to NiceHash [link] [comments]

What's more profitable? Mining gear vs inital BTC investment. A multivariable optimization problem

I'm sharing my own calculations here. I'm not asking anyone to answer the question for me, unless they feel like doing so. Scroll down for results/plots if tl;dr
I'm currently in a spot where I have a halfway decent desktop PC and I want to start mining cryptos, both in order to make extra money and for the fun of it. Although I think I would enjoy mining cryptocurrencies and the challenges associated with it, I also need to ask myself whether it is worth to invest the money in the extra gear, or am I better off just investing that money into bitcoin instead? Especially considering that mining is not as profitable as it used to be. I intend to get a feel for the problem by doing some calculations on my own instead of relying on the typical online ROI investment calculator as they don't really take the appreciating value of BTC into account. I'm specifically looking at these variables
1) Profits/day/GPU
2) How many GPU's to buy to maximize profits (this is not necessarily obvious as you'll see)
whereas the electricity and gear costs are assumed to be constant.
The specifics of my particular scenario are (that I think is pretty common for people with a gaming PC and haven't started hardcore mining yet):
Compared to investing those expenses straight in to bitcoin, are the two additional GPU's to my existing rig worth it? Is it worth investing in an additional dedicated mining rig and add as many GPU's as I see fit as well? For what ranges of profitability per GPU per day does it make sense to invest in additional mining gear?
For these calculations I make the following (somewhat arbitrary but hopefully reasonable) assumptions:
Results
3D plot
Since the profits depend on both the number of GPU's and the profit/day figures I decided to plot it as a 3D-surface: Results, 3D plot
The plot on the left is the profit made from investing in mining gear instead of an equivalent investment in bitcoin. The plot on the right is the total profit when only considering fiat money that doesn't change in value, which is what you'd typically consider.
2D plot
Results, 2D plot
This is the same results as the left plot in the above 3D plot but compressed into to the perhaps more familiar 2D graph environment.
What to make of this?
First of all it is trivial to conclude that I will make a return of my investment in fiat, no matter the configuration or the profit/day range. Even a pretty conservative $0.8/day pays off pretty decently. However this doesn't say anything about whether it's better than an initial bitcoin investment.
When considering the appreciating value of bitcoin, it gets a little more interesting. I can safely say that at the $/day profits that we get for a 1060 these days (around $0.9-$1.3) it would be a bad investment to buy an additional rig. However, if the profits were to go up to the +$2 range again I'd could start making bank by getting as many mining rigs as I possibly can. At +$1.4/day I might consider getting an additional two GPU's for my existing PC as can be seen in the 2D plot.
Looking at the above plots, at these currently low profit rates that we see today I'm better off letting my current 1060 mine away and invest the rest of the money in bitcoin.
Hopefully some of you might find this useful or enjoyable lol
submitted by skankysmurf to gpumining [link] [comments]

4 Sub-$10 Million Market Cap Coins Worth Keeping An Eye On

1. Spectrecoin ($XSPEC) – $8.6 Million

What is Spectrecoin?

Utilizing a “range of proven cryptographic techniques” to achieve anonymous, untraceable, and un-linkable transactions, Spectrecoin is a secure Proof-of-Stake cryptocurrency enabling rapid P2P transactions and network privacy. Specifically, Spectrecoin is pulling out all the stops in order to protect user identity through their integration of:
At its core, Spectre’s dual coin system sanctions four fundamental types of privacy and anonymity transactions, XSPEC > XSPEC, XSPEC > SPECTRE, SPECTRE > SPECTRE, and SPECTRE > XSPEC, providing a plethora of transaction options for every type of user.
And finally, if you’re looking for the TLDR (too long, didn’t read), Spectrecoin notes the best way to understand SPECTRE is to think of Bitcoin + Proof-of-Stake.v3 + anonymous transactions (similar to Monero) + Tor (for IP obfuscation).

Why You Should Keep an Eye On XSPEC

Unlike several other privacy coins which merely provide a Tor proxy—availing users to potential malicious exit nodes—Spectrecoin is fully integrated with Tor, a reliable and tested network providing one of the largest pools of IP addresses for confidentiality and untraceability.
Coupled with staking, set at a 5% minimum per year, Spectrecoin offers a unique proposition (the only one in blockchain) for users looking to earn rewards while remaining anonymous by staking anonymous coins while generating more, fresh anonymous ones.
Furthermore, for those looking for affirmation of Spectrecoin’s commitment to anonymity, not even the developers know each other’s real names—something that would have made walking away from a lacklustre ICO (which only raised 16 BTC at $600/700 per BTC) all too easy.
Spectre has emphasized organic growth without an excessive and aggressive marketing push, opting instead for a working product and timely improvements to meet the ever-changing privacy arms race. And, with their funding gap set around £19,000, users can take solace in knowing the project isn’t an outright cash grab asking for millions to further tenuous goodwill—like far too many projects in the cryptosphere.
At time of writing, XSPEC is listed on CoinMarketcap at US$0.41 or 5,970 Satoshis.
Finally, if you’re wondering how Spectrecoin stacks up to other privacy coins, such as Monero, PIVX, and Zcash, check out this comparison chart.

2. FundRequest ($FND) – $1 Million

What is FundRequest?

In an age where open source software is an integral component for institutional, government, and nonprofit function and growth, there unfortunately remains a hindering factor—a cohesive, transparent, and styled request and transaction flow.
Cue FundRequest, a decentralized marketplace for open source collaboration and catalyst for global open source sharing and circulation, empowering organizations, government, and other entities to:
Need to brush up on what exactly ‘open source’ means? The Open Source Initiative describes the concept of ‘open source’ as a tool which “enables a development method for software that harnesses the power of distributed peer review and transparency of process.”
For example, a requesting organization (referred to as the funder) will allot set funds—stored in a smart contract (i.e., escrow)—in order to tackle an open source issue, which is then picked up and solved by a developer (the solver). In order to eliminate malicious behavior, FundRequest requires solvers to “have skin in the game,” by staking proportional valued funds, all released and claimed once the issue is solved.
Simply put, FundRequest is the go-to facilitating and incentivization platform (similar to Airbnb and Uber) for funding, claiming, and rewarding open source commits and contributions, leading to an enriched and more collaborative open source ecosystem.

Why You Should Keep an Eye On FND

With an estimated US$60 billion-plus in savings per year for organizations and institutions, thanks to open-source software and technology adoption, FundRequest is set to act as the glue which connects all dispersed and integral parts and actors. Traditional software, prohibitive costs, and predatory vendor practices are proving not to be conducive towards maximal technological growth and development, as most people and organizations just simply can’t afford or maintain it.
Plus, with a clear push by both private and public sectors to leverage community-based software for development and distribution over the last decade, it’s expanding at rapid pace. In 2018, it’s approximated over 50% of European and North American companies utilize open source software for “crucial applications,” along with over 50% of American government organizations.
This is no small industry.
GitHub alone boasts over 24 million users (more than 8 times their user base five years ago), and it’s estimated that in the EU and United States combined, there’s over 160 million persons working as freelancers and independent contractors in what’s known as the “gig economy.” And that’s just the tip of the iceberg, with over 60% of online gig economy workers accounted for in Asia.
As of August 1st, FND’s price sits at right around US$0.03 or 472 Satoshis.
Finally, for open source projects and ERC-20 token projects looking to increase development capacity, consider checking out FundRequest for potential partnerships. Already in their short tenure, FundRequest has partnered with:

3. COSS ($COSS) – $7.7 Million

What is COSS?

Redefining convenience, simplicity, and compatibility, and short for the “Crypto One-Stop Solution’ exchange and platform, COSS is the native token and liquidity attraction tool of the Singapore-based exchange, boasting some of the most popular altcoins on the market while enabling users to receive weekly payouts in “dust” for all traded tokens.
Specifically, COSS is looking to provide more than just a simple, fast, and secure cryptocurrency trading exchange—they’re building a borderless, digital economical system to bring cryptocurrencies to the masses via:
Ultimately, COSS is looking to shake up the cryptocurrency exchange ecosystem through improved user experience, heightened product and feature functions, and a comprehensive foundation for employers, startups, companies, and traders to build towards a more accessible and mainstream cooperative blockchain community.

Why You Should Keep an Eye on COSS

With the rapid and gargantuan successes enjoyed by both Kucoin and Binance in 2018, crypto exchanges employing user-friendly token incentivization models are becoming a go-to for users looking to generate passive income while diversifying their crypto portfolio.
However, unlike other cryptocurrency exchanges which have lowered their daily fee splits to nominal amounts, COSS has stayed true towards user rewards, keeping their daily percentage at 50%—paying out the respective dividends via a decentralized autonomous organization, ultimately guaranteeing an immutable percentage.
In order to stay competitive in the present-day blockchain ecosystem, COSS’s whitepaper notes a minimum of 3-5 new features implemented per quarter. In the past several months, below are just several of their most notable achievements:
And, if you’re looking to know what COSS’s endgame here is, their goal is to shift completely towards a decentralized autonomous organization (DAO) in the future, where governance and decision making is outlined in code and run by a peer-to-peer network.
Currently, COSS’s price is listed at US$0.06 or 935 Satoshis on Coinmarketcap.
Finally, if you’re curious about COSS’s fee sharing, check out the COSS fee share calculator, which provides an accurate picture of your monthly exchange fee earnings relative to the amount of COSS owned. One Reddit user recently posted, and provided a screenshot, showing the COSS annual dividends to be at nearly 10% per year.

4. Lamden ($TAU) – $6.9 Million

What is Lamden?

Named after the Sherpa language word meaning “to guide,” Lamden is staying true to its name by easing the creation and deployment of dapps and custom blockchains.
At its core, Lamden is providing a suite of developer tools mimicking “modern development processes in such tech stacks as Node.js or Python.” Simply put, Lamden is supplying the building blocks for experienced and amateur blockchain developers alike, enabling organizations and enterprise to skirt the energy and time costs of hiring and training expensive blockchain developers—ultimately speeding up efficiency and reducing overhead costs.
Lamden is broken up into three fundamental sections, which all are in furtherance of project depth and the deployment of hyperfast blockchains for developers to not only experiment with, but test and deploy across other blockchain systems and platforms:
Furthermore, Lamden supports the Ethereum network and Bitcoin-based blockchains at present, and boasts zero transaction fees and free chain-to-chain payments in exchange for chain allocation a specific amount of bandwidth for confirming payment channel transactions—meaning that its users are able to transact for free as a result of corporate entities bearing the network load and processing.

Why You Should Keep an Eye On TAU

Having released their ‘Cilantro’ testnet alpha in February 2018, Lamden has since hit the ground running, rolling out their first version of Clove soon after and tackling the necessary tune-ups and improvements in preparation of their mainnet launch in Q4 2018. Lamden’s mainnet is set to utilize a unique combination of Delegated Proof-of-Stake (DPoS) and the BFT Protocol, and will scale to process nearly 10,000 transactions per second.
Moreover, in April 2018, Lamden announced the creation of LamDEX, their own decentralized cryptocurrency exchange and platform, where users will be able to stake their TAU—the native token of the Lamden platform—to act as a market maker, allowing for a cohesive back and forth across the TAU pair at prices faintly above and below market cost, ultimately generating rewards.
With a rather daunting and tedious task ahead for anyone looking to utilize and incorporate existing smart contracts—which involves the manual searching for such on GitHub (a general repository website)—Lamden is truly adding value to blockchain and application development through their smart contract repository. Unlike GitHub, Lamden supports dependencies, versioning, and security, all essential elements for a quality package manager.
Doing so adds not only convenience, but practicality to smart contract packages and implementation, and stands to save enterprise and organizations both exorbitant developer costs and time.
If you’d like to learn more about Lamden’s developer tool suite, check out this complete overview from their blog.
At the time of writing, Lamden’s price according to Coinmarketcap is US$0.04 or 699 Satoshis.
To get a better picture of Lamden and their blockchain development tools ecosystem, check out this explanatory YouTube video from their channel.
Final Thoughts
Risk is inevitable when investing in crypto and blockchain projects. However, as long as you are cognizantly defining parameters for absorbing such risk, then diversifying your portfolio with smaller capped projects can be an effective way to realize value.
Whether you’re looking for a user-friendly exchange to purchase crypto directly with fiat from (and earn dividends for loyalty) or wanting to execute anonymous and secure transactions with a P2P coin, the aforementioned projects are all bringing value to the crypto sphere through their overhaul of ineffective traditional mechanisms and institutions.
Make sure to stay calm and collected during this bear market, associate yourself with quality projects that you think are bringing actual value to severely flawed industries, and remember, having a little gamble in you never hurts (as long as it’s properly accounted for).
Source: https://www.investinblockchain.com/sub-10-million-coins/
B0x: Gustafio
submitted by Marlie3 to altcoinforum [link] [comments]

Should I Choose PPS or PPLNS? - Antminer S9, Avalon 741 BITCOIN BREAKDOWN BEARISH SCENARIO VS. THE BULLISH SCENARIO!!!! BREAKING! BITCOIN GOING PARABOLIC! - These Are My Targets! - Bitcoin Price Analysis TOP 10 HIGHEST PAYING DIVIDEND STOCKS FOR 2019 BettorsNet com® Pay per Head introduces BitCoin as a Payment Method

Pay-Per-Share (PPS) Pay Per Share or commonly known as PPS offers an instant flat payout for each share that is solved. Bringing this back to the lottery example, imagine that a miner submits 1 ... Pay on Target (POT), Proportional (PROP), Recent Shared Maximum Pay Per Share (RSMPPS), Score, Shared Maximum Pay Per Share (SMPPS, Triplemining; We have discussed all the reward methods in the end of the article. Keep on reading. 3. Profitability. Make sure that the Bitcoin Mining Pool you want to join has a good percentage of hashing power on the Bitcoin network. Good percentage of hashing ... Pay Per Last N Shares is what PPLNS stands for.This method of calculating payouts includes a "luck" factor. Using PPLNS your payout per share will have a large range(30% more or less on your payouts), but on average, PPLNS earns more than PPS (by 5% or so) in the long run (a month or more). PPS is also known as Pay Per Share. It is a more ... BTC.com is also owned by Bitmain Technologies and is one of the largest and free Bitcoin mining sites, started in 2016. BTC.com has its unique own way of payment system: FPPS (Full Pay Per Share), which is similar to PPS and TX fees in the payouts along with block rewards. BTC.com charges 1.5% as fees and has 0.001 threshold. Pros: PPS (Pay Per Share) PPS is a payment method that involves a fixed payment for each share provided by the user. It is one of the most common models in miner reward distribution pools. The pool determines the cost of each share independently from the calculation of the network complexity, network reward, block time and the pool’s own power.

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Should I Choose PPS or PPLNS? - Antminer S9, Avalon 741

I'll use technical analysis on the Bitcoin price to make a Bitcoin price prediction. Watch the video to learn more! 0:40 Bitcoin Berish Scenario 8:30 $5,000,000 Per Coin 13:56 Ponzi Scheme 🔥HOW ... This video is unavailable. Watch Queue Queue. Watch Queue Queue Welcome to Team Underground, I (Thomas) do weekly BTC price analysis on YouTube. I've been full time trading bitcoins for over a year now and I've decided to share some of my analysis on YouTube ... The bitcoin (BTC) price has broken a year-long critical resistance zone. In this bitcoin technical analysis, we have a look at previous bear markets to see how they compare to the current price ... PPS(Pay Per Share), PPLNS(Pay Per Last N Shares), and Proportional. PPS and PPLNS are the most common for sure, but the general consensus is that proportional is the fairest to every miner. The ...

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