Life of a Small Time Investor #9

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Thank you for reading, I am Dukefish, an EOS advocate and this blog series “Life of a Small Time Investor” is intended to share my experience with the crypto world and help those learn from my mistakes and triumphs. Though as always, this blog is not investment advice just how the chips have fallen for me so far. The greatest knowledge I can pass on to you is, make sure that you Do Your Own Research!

In the Bleak Mid-winter

Well it is still been a week or red and the downward trend continues, Bitcoin is stagnant around the $3200 and there is no clear sign of a bottom as of yet. BTC dominance has exceeded 55% and volume remains high as people are still trying to dump their assets.

The top 10 coins in terms of marketcap have seemingly returned to early November positions as the whole Bitcoin Cash fork played havoc, Ripple (XRP) sits comfortable in second place with over 3 billion on Ethereum, which has been taking a nose dive in price and faith.

Many ICO’s were founded on ETH using erc20 tokens and either projects have cashed out, winded down or just exited the market all together. There is some hope for ETH though, as a consensus was finally made on the implementation of the Constantinople hardfork.

This will increase the mining difficulty and implement a few other changes to the way the Ethereum network functions. However this is probably too little too late, as this update has been delayed since October. While other networks and chains have similar solutions already built into them. ETH also has plans to eventually transform into a Proof of Stake network which is causing contention within the Ethereum community.

EOS CPU (again)

The main topic in EOS right now is that that of CPU. There are  many issues that it is causing, making the average user interacting with the blockchain face some difficulties.  CPU demands are still high and so is its cost, the last few days have seen many people complaining and asking “why can’t I do X on the main-net. ” Most notably people here on Trybe are struggling to claim the recent Dec 11th trybe airdrop.

In short if you only have $10 to $20 worth of EOS staked then it is going to hinder you from doing things on the blockchain. The shortest answer to get more CPU is buy more EOS and stake them, while not a popular opinion it is essentially true.

Do I really have to cite this image?

I and many others have talked about solutions and workarounds, Chintai being the most popular and one that I have used. I ended up renting 300 EOS for a week at 0.39%  and this has enabled me to perform most of the functions I wanted over these last few days.

Though since I rented the price has gone up quite a lot, in fact doubled and at present it is at 0.70%, which for lenders is great as they will be making decent passive income returns.

There is also ZKS tokens , a solution that I have not seen talked about as much as Chintai or REX, and something that I overlooked too. Unlike Chintai, ZKS tokens allow you to rent CPU and Network for a much shorter period of time. One ZKS token provides 0.9 CPU and 0.1 NET for 3 Hours which is great if you are short and want to perform one or two smaller operations, (such as staking more or making a transaction).

The transaction occurs on the company’s website and you are delegated your CPU and network pretty quickly. ZKS tokens were initially airdropped at start of November of 31 ZKS to every EOS account, which held a balance of 0.1 EOS or greater.  They can now be acquired fairly cheaply on numerous exchanges. If you are a gambler you can earn extra ZKS on BetDice by using the link on the ZKS website. 

 

ZKS Logo

An additional way to get ZKS has been implemented on EOSToolkit, and finally given a use to the POOR token. This token was originally part of the trial of the air-grab feature and was offered to those who tested it out at the beginning of the main net creation.  Since then it hasn’t really had any functionality, until now! 

There is now a feature on the site called Poorswap. This service provides a pool of ZKS,  available every 24 hours of 3331 ZKS. You then ‘spend’ your Poor tokens and will receive a percentage of ZKS from the pool. The ratio is based on your spend vs the total of all Poor tokens for that time period.

So as an example, If you spend 1000 POOR, and the total pot of invested Poor is 2000,  you receive 50% of 3331 ZKS for that day. Granted this will vary from day to to day and it might not end up giving you a vast amount of ZKS but it is a great way to use up these dormant Poor tokens. The site also states that all Poor tokens will be burned from circulation. 

This is another great addition to the CPU issue and I am pleased to see the block producer. GenerEOS providing solutions for the community.

 

REX

We have all been told that the implementation of the resource exchange or REX is going to be key to helping solve the CPU crisis here on EOS. Well we are one step closer now, as REX has been introduced into the newest EOSIO release.  This is not live yet as the stable version of EOSIO is 1.5.1, REX is proposed to appear in 1.6, which does not have a date set for release, as of yet.

It has been confirmed that all proceeds from RAM trading fees and account name auctions will be added to the REX dividends pool, but only after implementation. The current values in these accounts will not be added. The duration of each REX loan will be 30 days and its price is determined by an automated market maker, so hopefully we will see some stability in price to use this service. In order to use this function you must have voted for at least 21 block producers and/or used a proxy ( it is not clear if the proxy has to vote for 21 as well, I assume it must)and you will have to activate the REX contract yourself, (similar to allocate stake) it is not automatic.

As REX is currently being tested hopefully we will see it implemented in the early part of Q1 2019, with the current CPU problems it is paramount it is tested thoroughly and will work when launched onto the mainnet. EOS is still young, 6 months since launch so there are still going to be things that need to be worked out and problems to be solved, the introduction of REX is the first of these solutions.

 

Gambling dApps

As always when I discuss these gambling apps, I always start with this word of caution, gambling is addictive and you can lose it all. Remember to only wager what you are willing to lose. The casino model is one of the most profitable businesses out there for a reason. So in my last entry I talked about Dan’s criticism of certain dice apps and the way there code was written, and that poorly written code was increasing CPU demand. Well the BETDice team responded and commented on the issues raised.

I am not a coder by any means, despite trying to learn, but essentially from the response the main reason BETDice structured its contracts like it does is to increase security. With some dApps being historical vulnerable early on in EOS existence, and previously  being targeted and exploited by hackers, I feel this is a  responsible response from BETDice to make sure that their platform is secure.

BETDice also had plans to release a blackjack game but this has been delayed as well, due to there attempts to improve user experience in this current CPU crisis. BETDice also introduced gambling  using the new custody coins of EBTC, EETH and EUSD introduced by Bitpie, (discussed in my previous blog entry #7). Due to the success of these coins and ongoing use the bonus promotion has now been extended. So if you are gambling with these tokens you are still going to reap some extra rewards.

EOSBet one of the first dice and gambling apps has recently published its plan to expand it operation. After receiving a licence from a small tax haven nation for online gambling the site plans to expand, at present its own token BET is not trade-able but is planning to be listed on some exchanges in the coming weeks,  which will be very lucrative as many accounts will have been sitting on a stack for quite a while.

EOSBet also discuss the numerous options for adaption with regards to CPU changes and has not decided on how they intend to go. They discuss potential side chains, reworking of contracts and off chain solutions. They are also introducing there own version of the 'Crash' game in the near future, the will also be a significant UI update.  In there latest medium post (dated 15/12/18) the company claim "The backend contracts and structure have been completed for our native account system, which will allow users to play without having to worry about CPU or RAM costs. " If this is the case, then EOSBet will surely be a rival to the most successful gambling app.

These gambling apps are the driving force between the early use case of the EOS network, I am pleased to see that they are taking steps to evolve and adapt in the market and it will only be a good thing for the EOS ecosystem as a whole.

Moving Forward

CPU will still be a burden for the ecosystem until the discussed implementations come to light, it is affecting all EOS account users and it is keeping new people from entering this space. Once this issue is contained we can all expect a flourishing network, the cryptospace as a whole is still suffering from the bear market and everyone is still concerned when capitulation is going to occur, some fear BTC will drop way down to 1000, if so it will be quite the opportunity to fill one's bags. I feel bad for those who have lost money and bought in at much higher values but such is the risk of investing and playing this game.

Thank you for your time!

– Dukefish

(If you enjoyed this article why not check out some of my others.)

—> Previous “Life of Small Time Investor” Blog Entry

—> Jargon Buster and Glossary

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