death grips: to buy tez0s or not - an exchange on the ICO analysis
P. H. Madore at Hacked.com (Hacking Finance) wrote an analysis of the tez0s ICO.
He gave it: “his highest safety rating yet: a solid 8.7 on a scale of 0 to 10.”
The tez0s ICO is uncapped: “One drawback is that they do not intend to cap the coin supply.”
I had questions, emailed him, and he responded with good points that expand on his analysis, saying I could share the exchange.
Below is a cut and paste of our exchange. I found his points educational.
I am posting it here for potential investors, cryptocurrency enthusiasts, and financial wizards out there.
You can follow him on Twitter @HackedCom if you want to read his other ICO analyses.
- ICO Analysis: Tezos
Posted by P. H. Madore on May 12th, 2017.
https://hacked.com/ico-analysis-tezos/
- My questions to him:
On Fri, May 12, 2017 at 8:41 PM, Alexander Chopan [email protected] wrote:
I read your ICO analysis of tez0s, have questions.
Context:
- I’m a layman
- My assumption is you know more than me
- you did the analysis, you have more granular perspective
- Why is uncapped good?
- dilutes value for token holders, no?
- Or am I looking at it the wrong way?
- value not in the token, but in whatever tez0s accomplishes in the future?
- some other perspective?
In the end, investors own investors’ money, and it is their choice. I realize this may be more of a philosophical question. Curious of your thoughts.
How it seems to a layman reading only the white paper and the press:
"The author came into this with a very, very skeptical view...it’s hard to disagree with Tim Draper: Tezos could definitely make the world a better place."
- ok. Promising protocol.
"The Breitmans... identify with a philosophy of absolute freedom as well as aiming at a democratic platform which will never experience the road blocks to expansion and scaling we are seeing in Bitcoin and will eventually see in similar platforms, not only have their hearts in the right place, but they’ve put their money where their mouth is and have designed a platform which solves far more problems than it could potentially create."
- ok. Good people.
"One drawback is that they do not intend to cap the coin supply. Limited supply is part of the high value of Bitcoin and gold alike, but it is not the only value-creator out there. (Ethereum also did not limit the number of ether initially introduced into the ecosystem, and they are currently valued near $100.)"
- ok, but now we are talking about the value of the token, not the value of the investor / token-holder
"Later changes to the ecosystem can be made with the governance protocols of Tezos, so nothing is set in stone – perhaps the truest implementation of a decentralized vision to date."
- this premise rests on Breitman’s being good people, and tez0s succeeding
Thank you for your time,
Alexander Chopan
Linkedin: alexanderchopan
Twitter: @alexanderchopan
Email: alexander.chopan
— Sent by Siri —
- His response to me:
On May 12, 2017, 10:17 PM -0400, PH Madore [email protected], wrote:
Uncapped can be good, but it can also be bad. This is why I note it is a potential drawback. You run the risk of greedy minters just forever minting new coins, not selling them at a reasonable rate, and not expanding the ecosystem. But limited supply is only one small aspect of Bitcoin's value growth, and, in fact, the attitude of that has made some in the Bitcoin community believe that severely limiting the scaling of Bitcoin blocks is the ONLY way to increase the value of transactions, which is false and seriously damaging at this point in our progress.
Tezos is totally open. It can potentially do everything that Ether and Bitcoin do. That is why I say it's not bad, but not necessarily good. The democratic governance of it is really what could improve the world, and I see why Draper is willing to put a few million into it. To be totally honest, I'll be purchasing enough to own a staking node in the beginning, without a doubt. So, things that Ethereum can do can be done on Tezos, and things that cannot be done on Ethereum or Bitcoin can also be done. This is why the openness makes up for the uncapped supply. Also, if enough old-school bitcoiners were to join and supply got out of control, a proposal could be introduced to artificially cap supply. Hence, the real value of the thing is in the democratic governance.
The value of the token as an investment vehicle may take awhile to fully mature. I would suggest not investing more in it than you would have if you had a second chance at Ethereum, or, as I often say, waiting until a few months have passed and seeing how it performs. This can be a good way to get in before a first major rise, since often immediately after an ICO there is a sharp price drop.
Thanks for reading, requesting, and writing in.
Paul Madore
- My request to post the exchange
---------- Forwarded message ----------
From: Alexander Chopan [email protected]
Date: May 12, 2017, 10:21 PM -0400
To: PH Madore [email protected]
Subject: Re: hacked.com / tezos question
Can I share our exchange on Steemit?
It's helpful for the noise that's out there.
Thank you for your time,
Alexander Chopan
Linkedin: alexanderchopan
Twitter: @alexanderchopan
Email: alexander.chopan
- His approval
---------- Forwarded message ----------
From: PH Madore [email protected]
Date: May 12, 2017, 10:33 PM -0400
To: Alexander Chopan [email protected]
Subject: Re: hacked.com / tezos question
Sure. I don't mind.
---------- Forwarded message ----------
From: PH Madore [email protected]
Date: May 12, 2017, 10:34 PM -0400
To: Alexander Chopan [email protected]
Subject: Re: hacked.com / tezos question
Just be sure to link to the article somewhere.
————
You can follow him on Twitter @HackedCom if you want to read his other ICO analyses.
Here again is the article:
ICO Analysis: Tezos
Posted by P. H. Madore on May 12th, 2017.
https://hacked.com/ico-analysis-tezos/
Here is a Steam post by some other smart people with their views: