GAS MISCONCEPTIONS

Common misconceptions about GAS

Misconception: GAS is basically Ethereum

GAS is very similar to ETH because it is used to pay system fees. However, there are a few differences.

• It is possible to pay transactions fees in fiat or GAS. You have to pay fees with ETH in Ethereum.
• However, extra service fees need to be paid in GAS
• The currency that is used on NEO will be fiat. GAS is just used to pay fees. Ethereum does not have a fiat option.
• NEO isn't meant to be a currency, it is meant to be a platform for smart assets. Maybe a similar statement can be said for ethereum.

Misconception: GAS will be used to fund ICOs

ICOs can accept anything they want. They can accept GAS, NEO, or even BTC. It makes more sense to accept a more stable token with a large market cap. They want to be able to sell the tokens without destroying the price. Since the ICO is being built on NEO, it makes sense to accept NEO rather than BTC because their target audience most likely has NEO. GAS has a relatively low market cap, so NEO may be a better option. GAS may become accepted by ICOs in the future, but it doesn't seem logical right now.

Misconception: GAS is more valuable than NEO in the long term

Let's make it very simple to compare GAS and NEO in terms of value. I want to remove unnecessary variables so, let's say hypothetically the ratio is 1 NEO = 1 GAS = $100 and the price will not change. They are both on equal playing fields. I am an investor looking to make money, which one will I buy? If I buy GAS, it will not make me money. If I buy NEO, it will generate me GAS that I can sell for profit.

A week after buying NEO I will have

• 1 NEO + 0.0032 GAS generated + GAS from extra service fees = $100.32 + extra service fees

A week after buying GAS I will have

• 1 GAS = $100

In conclusion, 1 NEO is worth more to me than 1 GAS as an investor. It is smarter to buy NEO if the ratio is equal to or greater than 1 GAS:1 NEO. The same cannot be said for ratios below 1:1.

Some people say that you have to compare the market caps. You can't compare 1 NEO with 1 GAS because there is a difference in the number of tokens in circulation. This is true for things like bitcoin and litecoin because they are not not related to each other, so you need to compare market caps. However, there is a relationship between NEO and GAS that links them together. NEO produces and collects GAS. This ties them together and allows you to compare them on a token to token basis.

Please feel free to correct my logic if I am incorrect. I accept that I can be wrong and am willing to own up to it.