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

Post by lottin » Wed, Apr 21, 2021, 9:13 AM UTC

ArtTimeInvestor wrote: post #66

lottin wrote: post #41

Earlier quoted context omitted.

You're comparing a risk-free rate (government bonds) with a rate on risky investments. Not really comparable at all. You can also find high-yield bonds (aka junk bonds) denominated in USD. Also real interest rates are set by the market not governments. Monetary policy has, at best, only small effects on real rates (in theory it should have none).

> You're comparing a risk-free rate (government bonds) > with a rate on risky investments. I don't think so. What is the "risky investment" here? I compared lending of different currencies. In the case of Euros or Dollars, the lender is a government. In the case of crypto, the lender is a smart contract. Both are assumed to be reliable.

Post by nlitened » Wed, Apr 21, 2021, 9:13 AM UTC

casi wrote: post #5

nlitened wrote: post #4

Earlier quoted context omitted.

If I am not mistaken, Wikipedia says that more than half of current supply of ETH was distributed among initial investors. That’s also another part of supply formula to consider.

Worth pointing out “initial investors” is anyone who sent 1 btc to the crowdfund back in 2014. It wasnt some closed off thing for vcs, anyone could participate. People just bought their tokens before the network started.

Post by londons_explore » Wed, Apr 21, 2021, 9:14 AM UTC

inter_netuser wrote: post #100

londons_explore wrote: post #99

Earlier quoted context omitted.

What scares me from Ethereum is the very vibrant ecosystem of developers and builders around it. Look back at Ethereum's history and the vast vast majority of historical projects are dead. People who invested time or money into them have lost out. What makes it different now?

ICOs? or smart contracts broken by never-ending hardforks?

Post by cryptonautics » Wed, Apr 21, 2021, 9:16 AM UTC

ArtTimeInvestor wrote: post #67

runeks wrote: post #48

Earlier quoted context omitted.

The leverage is speculation using borrowed money. See: https://www.blueleaf.com/articles/how-leverage-works-in-inve... .

That does not answer my question: How a smart contract can implement lending in a way that both parties are satisfied: - The lender gets their money back plus interest. - The borrower makes a profit if the price of the borrowed currency goes up.

Post by inter_netuser » Wed, Apr 21, 2021, 9:16 AM UTC

throwaway_isms wrote: post #89

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…

The money behind big tech has mastered manipulating demand and that is exactly what you are seeing in the Ethereum/NFT ecosystem. It is one giant fraud bankrolled by unlimited capital that can artificially increase prices at which point there becomes demand from people in fear of missing out, once the early capital has the suckers locked in the prices plateau at first as the capital stops buying and driving the price…