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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: