A domain where its default home page is a PDF? That's a new one...
ps. And I'm not buying the "environmentally friendly" argument until proof-of-stake is actually live and completely displaces PoW in mainline production.
Ethereum: A Store of Value with Cash Flow [pdf]
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Re: Ethereum: A Store of Value with Cash Flow [pdf]
#22It will be interesting to see if interest rates in government controlled currencies and crypto currencies will stay diverged in the long run. Without the distorting action of governments printing money, interest rates might be set by market forces in "crypto land". This might lead to a long term situation where artificially low interest rates are paid in government controlled currencies, but market prices are paid in…
I think the primary reason interest rates are high in crypto lending right now (also on USD stablecoins) is leveraged speculation - people using crypto as collateral to leverage their crypto positions higher (and/or yield farm) and are prepared to pay a relatively high interest rate for it (~10% on stablecoins) because the expected gains are a fair bit higher.
I don’t expect this will last forever
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#23What is crypto replacing really? I’ve yet to read even a fair explanation without mental gymnastics. And I’ve been waiting to the last ten years.
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#24A domain where its default home page is a PDF? That's a new one... ps. And I'm not buying the "environmentally friendly" argument until proof-of-stake is actually live and completely displaces PoW in mainline production.
If the issue is whether PoS will work is troubling you: other PoS chains like Algorand have been successfully running for well over a year. Seems in no doubt.
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#25Earlier quoted context omitted.
>they are determined by supply and demand You are correct, but only in theory: this requires the precondition that people are rational economic actors. In practice, people are weird, and the scarcity of supply creates a demand. There is therefore a weird feedback loop between the supply and the demand, and scarcity alone is enough to create "value". Examples: - Beanie babies - Magic the gathering cards - Pokemon card…
> There is therefore a weird feedback loop between the supply and the demand, and scarcity alone is enough to create "value". Yes. Temporarily. And a much less weird feedback loop is enough to annihilate all of this “value” at some later point in time (the “crash”).
A good example of this is stamp collecting. A grandparent carefully collected stamp albums for his grandchildren. They are now pretty much worthless, because the fashion for stamp collecting has gone. I hope he enjoyed the process of collecting.
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#26It will be interesting to see if interest rates in government controlled currencies and crypto currencies will stay diverged in the long run. Without the distorting action of governments printing money, interest rates might be set by market forces in "crypto land". This might lead to a long term situation where artificially low interest rates are paid in government controlled currencies, but market prices are paid in…
I am sorry but what do you mean by interest rate in crypto?
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#27[deleted]
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#28Earlier quoted context omitted.
> There is therefore a weird feedback loop between the supply and the demand, and scarcity alone is enough to create "value". Yes. Temporarily. And a much less weird feedback loop is enough to annihilate all of this “value” at some later point in time (the “crash”).
A good example of this is stamp collecting. A grandparent carefully collected stamp albums for his grandchildren. They are now pretty much worthless, because the fashion for stamp collecting has gone. I hope he enjoyed the process of collecting.
Is that true? Time to buy the dip in stamps!
Then, I can issue NFTs for my old stamps.
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#29What mostly excites me about Ethereum ist the very vibrant ecosystem of developers and builders around it. You can think of NFTs and DeFi whatever you want, the sheer amount of new applications and innovative ideas on the ethereum blockchain has been mind-boggling. My personal favorite is Sorare, which combines NFT collectibles with fantasy soccer. And sure, right now everything suffers from high gas prices but it lo…
All those things will never break among the common folk.
The common folk wants ease of use above anything else. It has to be as easy as sending money via paypal.
No doubt ETH can be the base of that technically, but the model which has ETH holders make money off the appreciation of the ETH token in the process is flawed.
Fortune500 and even startups who'd use the open source ETH blockchain technology to bring many services to the common folk won't ever accept to pay a huge cut to parasitic behavior such as to those hodling or staking.
Also nobody ever mentions how the ETH blockchain is opensource. If a startup of a fortune500 wants to do something about it they have a big chuck of the development cost eliminated just by forking off the ETH blockchain. This is great! But just like Android doesn't owe Linus anything, so those companies will owe nothing to the stakers and the ETH holders.
So to summarize, if you want to build something go to Zug, find Vitalik and give him a big kiss because he saved you a lot of money, at the same time show the middle finger to hodlers and stakers on your way out.
On the other hand...if you want to have a shot at getting rich without doing any work...buy deflationary crypto such as king BTC and watch it appreciate vs the dollar....and it will because people are scared as hell about inflation (regardless of the merit of such scare), and everybody is scared about it...from the common person at the supermarket to Stanley Druckenmiller
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#30It will be interesting to see if interest rates in government controlled currencies and crypto currencies will stay diverged in the long run. Without the distorting action of governments printing money, interest rates might be set by market forces in "crypto land". This might lead to a long term situation where artificially low interest rates are paid in government controlled currencies, but market prices are paid in…
I think the primary reason interest rates are high in crypto lending right now (also on USD stablecoins) is leveraged speculation - people using crypto as collateral to leverage their crypto positions higher (and/or yield farm) and are prepared to pay a relatively high interest rate for it (~10% on stablecoins) because the expected gains are a fair bit higher. I don’t expect this will last forever
You say that one can create leverage by borrowing? How does that work?
Is it a contract like "You borrow me 1 ETH and I will pay back 1.1 ETH in a year. Except when X happens, then I will pay back 2 ETH"?
If so, what is X?