Basecoin, aka the Basis Protocol
prestonbyrne.com
Basecoin, aka the Basis Protocol
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Re: Basecoin, aka the Basis Protocol
#2One thing that jumped out at me was that the article compares modern cryptocurrency to the dot com situation in 1997-1999, and is using it to criticize cryptocurrency.
27 billion dollars were raised in 1997-1999. Perhaps most of that was wasted. But just one company started in that time period, Google, is now worth 700 billion dollars. From an overall point of view, the dot com investment era was good investment. People just weren't sure which companies were going to be the winners.
Re: Basecoin, aka the Basis Protocol
#3One thing that jumped out at me was that the article compares modern cryptocurrency to the dot com situation in 1997-1999, and is using it to criticize cryptocurrency. 27 billion dollars were raised in 1997-1999. Perhaps most of that was wasted. But just one company started in that time period, Google, is now worth 700 billion dollars. From an overall point of view, the dot com investment era was good investment . Pe…
Also, Amazon.com. That's over a trillion dollars of value between them.
The Dotcom craziness gave us hundreds of companies of which only a much smaller amount survived and just a few thrived. But those few more than made up for the total aggregate investment. Likewise with cryptocurrencies. I would not be surprised, in fact I fully expect that most of the crypto coins and tokens out there will fail, investment in them being for nought. But 10-20 years from now, I would be very surprised if the total cryptocurrency industry, consisting of the winners and their descendants, is not orders of magnitude larger than it is today. Just like with the Dotcom era.
Re: Basecoin, aka the Basis Protocol
#4Preston takes an insulting tone towards the basis team. Fine to critique, but assumes the visionaries of this project are uneducated, or haven't given things proper thought. I assure you they are thoughtful...
Re: Basecoin, aka the Basis Protocol
#5One thing that jumped out at me was that the article compares modern cryptocurrency to the dot com situation in 1997-1999, and is using it to criticize cryptocurrency. 27 billion dollars were raised in 1997-1999. Perhaps most of that was wasted. But just one company started in that time period, Google, is now worth 700 billion dollars. From an overall point of view, the dot com investment era was good investment . Pe…
Public investors lost much more than $27B. (Private investors made money.)
There were thousands of IPOs during the 1996-1999 period. Hundreds of billion of dollars were raised.
The impact of the dot-com bubble in terms of actual losses was hundreds of billions or even trillions of dollars.
Re: Basecoin, aka the Basis Protocol
#6MakerDAO's DAI coin (currently collateralized by ETH) has already proven quite stable in the face of several black swan events and the price of Ethereum crashing nearly 70% over the past couple of months. They're in the process of adding more assets to back the currency to improve stability. The supply is capped by a debt ceiling. There are sound principles behind the currency, and it being an ERC20 token, it's got all the advantages of being pluggable into the ETH ecosystem.
It's not a bad idea, it's actually a great idea and if DAI or BaseCoin turns out to be stable-ish over the long term, then it will be incredibly useful for the crypto ecosystem. Honestly, even if DAI fluctuates a few pennies here and there, if it's stable-ish it will be useful for a wide variety of services and applications.
Re: Basecoin, aka the Basis Protocol
#7One thing that jumped out at me was that the article compares modern cryptocurrency to the dot com situation in 1997-1999, and is using it to criticize cryptocurrency. 27 billion dollars were raised in 1997-1999. Perhaps most of that was wasted. But just one company started in that time period, Google, is now worth 700 billion dollars. From an overall point of view, the dot com investment era was good investment . Pe…
Vastly more than 27 billion was pushed into the dot com bubble. You need to look at both private equity and public stock purchases over a significantly longer time frame of around 1991-1999. Further, you would expect gains over 20 years from such investments.
S&P 500 went from 325.49 in 1991 to 2,714.24 today (8.34x), even inflation 1.85x over that time frame.
Re: Basecoin, aka the Basis Protocol
#8Preston takes an insulting tone towards the basis team. Fine to critique, but assumes the visionaries of this project are uneducated, or haven't given things proper thought. I assure you they are thoughtful...
I think perhaps the right way to approach critique of the OP is to provide citations or proof against the author's claims. It isn't a productive conversation to take offense at the general tone.
It also shows quite a bit of bias when you describe the people involved with the project as 'visionaries' and a vague assurance that aforementioned visionaries are thoughtful.
Re: Basecoin, aka the Basis Protocol
#9One thing that jumped out at me was that the article compares modern cryptocurrency to the dot com situation in 1997-1999, and is using it to criticize cryptocurrency. 27 billion dollars were raised in 1997-1999. Perhaps most of that was wasted. But just one company started in that time period, Google, is now worth 700 billion dollars. From an overall point of view, the dot com investment era was good investment . Pe…
Public investors lost much more than $27B. (Private investors made money.) There were thousands of IPOs during the 1996-1999 period. Hundreds of billion of dollars were raised. The impact of the dot-com bubble in terms of actual losses was hundreds of billions or even trillions of dollars.
Net losses are different from nominal losses. If someone buys at 10, the stock hits 15$ then drops to 5$, they lost 5$ a share not 10$ a share. We are easily talking about 100's of billions in losses, but 1.7 trillion is an over estimate.
Re: Basecoin, aka the Basis Protocol
#10MakerDAO's DAI coin (currently collateralized by ETH) has already proven quite stable in the face of several black swan events and the price of Ethereum crashing nearly 70% over the past couple of months. They're in the process of adding more assets to back the currency to improve stability. The supply is capped by a debt ceiling. There are sound principles behind the currency, and it being an ERC20 token, it's got a…
I think the defense of "nothing has happened yet" is a tough one to back, in particular given that during the build up to the last recession, 1) collateralized debt was claimed by wall street to be "as good as cash" and 2) the housing market would "always go up". It works until it doesn't.