Ethereum: A Store of Value with Cash Flow [pdf]

Post by whitepaint » Wed, Apr 21, 2021, 7:53 AM UTC

ObserverNeutral wrote: post #29

sherlock_h wrote: post #7

What 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 se…

Post by iso1631 » Wed, Apr 21, 2021, 7:54 AM UTC

ur-whale wrote: post #14

lottin wrote: post #10

The fact that something is scarce doesn't make it a store of value. Scarce simply means is in short supply, but prices aren't determined by supply alone, they are determined by supply and demand. Moreover, if an asset is in fixed supply, then its price is determined entirely by the demand. This means such an asset will only be a store of value if the demand for the asset remains strong over a long period of time, whi…

>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…

Post by orky56 » Wed, Apr 21, 2021, 7:59 AM UTC

dharma1 wrote: post #22

ArtTimeInvestor wrote: post #9

It 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

Post by pjc50 » Wed, Apr 21, 2021, 8:00 AM UTC

whitepaint wrote: post #31

ObserverNeutral wrote: post #29

Earlier quoted context omitted.

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 se…

> All those things will never break among the common folk. You should google "NFT".

Post by casi » Wed, Apr 21, 2021, 8:01 AM UTC

needle0 wrote: post #32

fumblebee wrote: post #24

Earlier quoted context omitted.

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.

Maybe so, but that still doesn't change that PoS on Ethereum itself has been "coming soon" forever. Until the switch actually happens in full, it's still a power-guzzling PoW chain.