From the AMA:
Q: Will ethereum complement bitcoin or will ether be a competitor that will rival bitcoin?
A: Definitely compliment Bitcoin. We are all huge fans of the beast that is Bitcoin and it will be the king for a long long time.
Bitcoin = Cryptocurrency Ethereum = Platform (that cryptocurries can be built upon)
Ether is the currency that is needed to run the contracts. Think of it as the oil that makes Ethereum run.
I assume to run anything on Ethereum you would need ether. To get ether you could either buy it with fiat, convert btc or other crypto to it, or mine it.
If BTC is really the king as you say, it's value should therefore be more than Ether. Do you foresee a time where Ether's value is higher than BTC's? What really is the point of ether? Why can't contracts just be run and paid for with BTC?
For an investment to be worthwhile, assuming you invest in the first week, 2,000 ether > 1 bitcoin. I'm just trying to figure out how ether will create it's value. What are the expectation costs to run a contract on Ethereum? Will it cost something like 1 ether (assumedly dirt cheap) or will it cost a couple hundred ether?
I imagine when ethereum starts off, contracts will be very cheap to run on Ethereum as a platform so it can gain popularity. So really it would be in the best interest of Ethereum to make initial contracts free or maybe just a couple ether to run. This means the value of ether will be very low. I'm kind of rambling, just some concerns I have about making an initial investment.
Thanks for clearing anything up for me.