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Ethereum collapse 📈
44 sats \ 8 comments \ @SantaNotSanta 10 Dec 2022 bitcoin
Recently I've been hearing some prominent Bitcoiners call out Vitalik for how he has responded to the SBF debacle. I've also seen people say Ethereum is a shitcoin and that "when it collapses it'll make FTX look like a blip on the radar".
I'm curious what people here think about it, and interested to see any resources shared here that shed more light on how an Ethereum collapse might take place.
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61 sats \ 1 reply \ @NorthKoreanHostage 10 Dec 2022
Yes, ETH is a centralized shitcoin scam that first began with a massive 72 million ETH premine. Ethereum launched with 12 million ETH given to the developers, and 60 million ETH sold sold for BTC as a part of its "initial coin offering" during the presale. The Ethereum developers purposely misled investors by suggesting that there was merely a 12 million ETH premine and ignoring the 60 million ETH that they sold during the presale, misleading total supply graphs in their prospectus. This is a serious concern in light of Ripple getting sued by the SEC as being an illegal security, which means in due time we should expect the SEC to also go after Ethereum developers and the Ethereum foundation for creating an illegal security, because that's exactly what Ethereum is because it passes the Howey Test.
Here is a clip of the co-founder of Ethereum, Joseph Lubin, describing how they allowed whales to use multiple fake identities to buy as much ETH as they wanted during the Ethereum presale. "A person can buy with any number of different identities. We may limit the unit size of a single sale to make it easier to disguise. So that nobody scares people with an enormous initial purchase. If you are a whale and you plan on investing several million US dollars worth, then you can do so with with multiple identities."
Vitalik and many others in the Ethereum space are known scammers. Vitalik is not an idiot and he knew better than to pitch something as ridiculous as quantum mining to investors. Another example is pitching turing completeness as the valuable aspect of ETH, now pivoting away from that and saying it was never about turing completeness but "rich statefulness."
- Gregory Maxwell: “Vitalik Buterin Ran A Quantum Computer Scam”
- Quantum Computing and Bitcoin with Vitalik Buterin
- Vitalik’s Quantum Scam
Now click here and listen to a few minutes of Bitcoin developer Jimmy Song talk about Ethereum and Vitalik.
Jimmy worked directly with Vitalik from the beginning, back when Vitalik was still working on rootstock for Bitcoin.
The Ethereum community has endorsed radical changes and pivots, trying to find narrative fit and the Ethereum leadership team is more willing to embrace alternations to the core objective of the protocol in their search for product market fit. They've literally tried world computer, dapps, crowdfunding, NFTs, DeFi, open finance, radical markets, store of value, and more. Ethereum is an aggregator of these narratives, trying each one out over the years in an attempt to seduce people that are uneducated about cryptocurrency. But there is no persistence of a singular narrative when it comes to Ethereum and they are still trying to find product market fit even after all this time.
Ethereum is a pointless project that will lead to no efficiency because there is no censorship risk in code execution. What purpose does Ethereum solve if it comes with a horrible trade off of an extremely large attack surface and huge scaling problems? They also advertised immutability and unstoppable contracts that were then immediately reversed with multiple hard forks.
Unlike Ethereum, Bitcoin's issuance rate and maximum supply are clearly defined and they will never change. Ethereum's inflation rate, maximum supply, and final algo are not even defined and people are investing in this. This is insane and it basically amounts to faith in Vitalik and his team. While at the same time newbies are misled into believing that Ethereum is decentralized. Meanwhile, Vitalik has full control over the whole project. Does anybody else here remember the DAO smart contract? Someone found a way to drain ETH and some of Vitalik's buddies lost a ton of ETH, so he rolled back the entire blockchain because Ethereum is centralized, Vitalik is the leader of it, and everyone in the Ethereum community agrees with him, so he can do whatever he wants with Ethereum. He chose to change the name of the real Ethereum blockchain to Ethereum Classic and calls his rolled back blockchain Ethereum. Not long ago ETH miners said they weren't going to follow Vitalik into adding a ponzi style transaction fee burn, so Vitalik, leader of Ethereum, called their consensus a 51% attack and changed the rules.
The fact that Ethereum has switched over to staking rewards also has serious tax implication in many countries where merely holding your ETH being staked will expose users to legal tax obligations. Exchanges for example must send a 1099-MISC to the IRS on behalf of any American user earning $600 in a year. Proof-of-Stake also makes it so the already rich whales control the network and will be collecting compounding interest to dump on the open market.
Ethereum has already failed to scale as expected and so they have hard forked again and switched to a proof-of-stake consensus algorithm and started over from scratch (formerly called Ethereum 2.0). This can only be done because Ethereum is centralized. I have no expectation that this new Ethereum will be any more successful than the previous Ethereum and this new Ethereum is still a centralized scamcoin that is controlled and ran by scammers.
Now Vitalik is already laying the groundwork for some more hype and suggesting a re-brand to Ethereum 3.0!
Ethereum scam part 1 - Here we focus on the Ethereum token pre-sale which to anyone with any financial experience, is an obvious sale of an unlicensed unregistered security.
Ethereum scam part 2 - Here we take a look at the value & business proposition of Decentralized Smart Contracts and why it's one of the dumbest ways to make your business more efficient.
Ethereum scam part 3 - The Ethereum scam part 3.
https://medium.com/startup-grind/i-was-wrong-about-ethereum-804c9a906d36
Ethereum and Ethereum Classic are Scams and so are the developers that build on them
"The Ethereum blockchain growing 85 terabytes per year is totally fine. If you have even one person that just keeps buying like a hundred dollar hard drive like I think once every month then they can store it." –Vitalik Buterin
Source: https://i.imgur.com/1FZdLC5.mp4
Institutional investors have no interest in ETH and this report titled "An Institutional Investor's Take on Cryptoassets" details why. This report even explains that when Ethereum's fees get too high and things don't go as planned, users will switch (and are switching) to use a different centralized cryptocurrency. You can already see this happening right now with all of the "ETH killers." That report also explains why institutional investors are interested in BTC.
Over 99% of altcoins were created to enrich their founders and over 99% of them have no future. None of them are as secure, as decentralized, or launched as fairly as Bitcoin. Satoshi created Bitcoin to allow online payments to be sent directly from one person to another without trust or permission from anyone else. Bitcoin had no premine, no developer fund, no developer tax, and no leader. Satoshi never sold, made no profit, got no fame for his real identity, removed himself from the project, and he gave a two month heads up before he launched Bitcoin. Bitcoin is decentralized and trustless with the full nodes in control of the protocol rules. And Bitcoin doesn't have a person, CEO, or company in charge of it or leading it.
Satoshi took careful steps to make sure that the world would look back and observe that Bitcoin was launched fairly:
  • No premine (Satoshi didn’t grant himself any coins)
  • Gave a 2 month heads up before launching the network (no sudden release and no mining before release)
  • Coins had no value for 1.5 years so they circulated freely (it's not even possible for an altcoin to replicate this)
  • Satoshi never cashed out (unlike every altcoin founder in history and I bet it stays that way for eternity)
Cryptocurrency is full of scammers/grifters, ignorance, and people that actually believe the lies because they've been sucked into shitcoin cults. Traders/gamblers use altcoins for trading/gambling to increase their BTC stack or even their ETH stack if they don't understand Bitcoin and cryptocurrency. Gambling on altcoins can still be very profitable during a bull run, but making a profit is not guaranteed and you can easily lose BTC when gambling on altcoins.
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0 sats \ 0 replies \ @selfish_gene 10 Dec 2022
кто то все прочитал? я пойду дальше... столько инфы... а время дорогое... 10 минут 6.25 биткоин
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10 sats \ 0 replies \ @2bithits 10 Dec 2022
Though it would be nice to see ETH die, it would be wishing on a wishing well to see a collapse like FTX.
If "smart contracts" on bitcoin continue to grow, there might be a slow bleeding out of ETH over time.
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10 sats \ 0 replies \ @Derpitor 10 Dec 2022
I'll push back a bit.
As long as there is a value proposition for ETH it will exist. Obviously there are some red flags around it but at this point it has been around long enough and has "decentralized" enough that it likely won't come crashing down.
The issue with it right now is state capture and that has been exacerbated with their currently crappy staking mechanism. ETH is far from being a complete product and will still take many years to develop.
Now ETH trying to brand itself as ultrasound money (which I don't think Vitalik is trying to do) is just plain dumb as you don't know what the supply will be even one block from now.
Centralization is still a big issue with ETH but right now I see it could still play an important role going forward as the permissioned censorship blockchain that businesses and governments like and would potentially use. Comparing that to Bitcoin is stupid and they will fulfil different purposes in the future.
This is just my opinion though.
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0 sats \ 0 replies \ @SantaNotSanta OP 14 Dec 2022
i found this section on the following link to be informative so posting it here to share: https://apxhard.substack.com/p/why-bitcoin-is-different-from-all

What about Ethereum? How is Ethereum a Scam?

If we look at the one criterion that matters (is it, or can it be, captured and controlled) consider:
  • There is an “Ethereum foundation,” which raised the initial funding to create Ethereum, and to this day, coordinates changes to the Ethereum code base
  • The Ethereum foundation consists of persons who could be overtly or covertly pressured by governments
  • Ethereum promised “code is law” and then, when someone ran code that exploited a flaw in a major smart contract, the Ethereum Foundation asked major exchanges to stop trading Ethereum so they could roll the blockchain state back
  • 50% of all Ethereum were created at launch, either for early investors or for the Ethereum foundation itself.
  • The consensus mechanism that Ethereum switched to, ‘proof of stake’ simultaneously rewards large holders of Ethereum and allows them to decide which transactions are and are not valid. Nothing would ever force these people to give up control over Ethereum.
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0 sats \ 0 replies \ @SantaNotSanta OP 10 Dec 2022
really interesting info guys, thanks for sharing your two cents. I had no idea the Ethereum Blockchain was growing by such a large amount of TB every year, that's ridiculous! And yeah really interesting to hear Jimmy Song discuss his interaction with Vitalik, especially when he said that all the people who have a vested interest in Eth are making him out to be aome sort of prodigy boy wonder, but in reality he's just some young and inexperienced guy who built this thing. This sounds very familiar to the SBF saga.
so, what are your predictions? how do you see Eth finally biting the dust and collapsing? it sounds like there may be some aggressive downward price action when they finally write the code (lol) to allow unstaking Eth. but what's likely to actually cause a spectacular fall from the heavens? perhaps a rulling by the SEC?
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0 sats \ 0 replies \ @satcat 10 Dec 2022
Those two words are music to our ears
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0 sats \ 0 replies \ @selfish_gene 10 Dec 2022
совсем не интересует другой коин... биткоин пока что изучаем... разробатываем... некогда тратить время на скам... даже много писать про этот коин нет сил.
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