Bullshit.
And it will die under weight of technical debt made by very ambitious and very incompetent early devs.
It won't scale. For that different programming paradigm, design decisions and set of tools are required.
Ethereum: A Store of Value with Cash Flow [pdf]
211–220 of 302 posts
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#212Earlier quoted context omitted.
I struggle to have any sympathy for "the little guy". Noone's lying to them, noone's defrauding them, noone's stealing anything or embezzling from them. It's just greed, plain and simple. If you pile into a get-rich-quick scheme but end up holding the bag in, then more fool you. I still think it should probably be regulated to prevent idiots from losing their life savings. But I won't pretend the losers are ethically…
This is such a simplistic view of “the little guy”. The dollar system is set up such that they have to ‘invest’ or else they will never be able to afford a house. Savings will bankrupt them. Stocks are meaningless, just handing your money to rich people that will never give it back in hopes that you can sell it for more later. But the whole system looks like it’s in free fall, so that doesn’t seem likely. Crypto woul…
> Crypto would have zero value if normal people weren’t scared and distrustful.
That implies cryptocurrencies provide no value by themselves and is simply false. Ethereum is essentially a distributed virtual machine that anyone can pay to use. Monero offers complete financial privacy.
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#213Earlier quoted context omitted.
How do you define a pyramid scheme? Thing go up in value?
I'd basically see it as an investment opportunity that greatly favours early adopters.
By this defintion any investment is a pyramid scheme. Even savings accounts give the greatest return to those who start early.
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#214Earlier quoted context omitted.
The most innovation is happening in financial products. There's no way for a developer or entrepreneur to experiment building in traditional finance without the support from large financial institutions. But in DeFi, there are financial applications built by teams in India, Africa, SE Asia, etc. If you want an example of one innovation, look at flash loans. Flash loans provide the ability to atomicly borrow infinite…
Flash loans are not a real world application. They are just another tool needed within the cryptospace itself. This is the problem currently. There's ten thousand teams building and building, but each one of them is building yet another library or yet another tool. Nobody has any idea how to connect the crypto economy to the real world economy. The only applications possible are ones that you can do within the crypto…
> Nobody has any idea how to connect the crypto economy to the real world economy.
How about stablecoins and exchanges? This already ties economies.
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#215Earlier quoted context omitted.
I hope you then also count stocks, land ownership etc. as such.
to a degree but not so much. Land has real value. Stocks are different again. The idea that eth is considered more of a stock than a currency is the root of its problems imo. I have a real itch to one day see a crypto being widely adapted as an actual currency. I think dogecoin is the only one in our current crypto eco-system that has even a fraction of a chance in filling that space. I'm sure it will happen some day…
> I have a real itch to one day see a crypto being widely adapted as an actual currency.
Monero is closest to achieving the original cryptocurrency dream. Private and anonymous transactions, good speeds, low fees, ASIC and GPU resistance, committed developers that are actually improving the coin over time, open source wallets even on mobile.
> I think dogecoin is the only one in our current crypto eco-system that has even a fraction of a chance in filling that space.
Why do you say that?
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#216The 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 drawings I made as a kid are very scarce, but completely worthless. Demand is what creates value, not scarcity, although scarcity has an amplifying effect
It's the interplay of supply and demand. Air to breath is in demand but doesn't cost much due to abundant supply.
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#217Earlier quoted context omitted.
> automatically manages its money supply. that's an interesting question and premis - automatic monetary policy. I wonder if good monetary policy could be encoded as a set of rules that can be followed by a machine.
In order to reduce the money supply, money needs to be removed from circulation. In other words whoever is in charge of managing the money supply has to "sell" valuable stuff and then destroy the proceeds from the sale.
or a different lever there might be to increase transaction fees
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#218What 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…
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?
I'd say that is a positive aspect. It means a lot of things are being tested. Most fail but at some point they might create something awesome that sticks.
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#219What 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…
> very vibrant ecosystem of developers and builders Whenever I see someone say something like this for some blockchain, I wonder what exactly is exciting for them? Most dapps is about money and more money, I played with Ethereum before (like stress testing nodes), and would really like to know really innovating dapp these days -- I mean tech that solve existing real-world problems, not create new subjects to collect.
Ethereum may be a distributed virtual machine but currently it lacks access to data from the outside world. Naturally this places constraints on the applications that can be built: they always concern Ethereum itself.
People invented Chainlink to solve this problem: provide real world data such as "package has arrived to its destination" to smart contract software. I don't think it has delivered on its promise yet.
Re: Ethereum: A Store of Value with Cash Flow [pdf]
#220Earlier quoted context omitted.
> Yes you need to know now but in 10 years my mum will use these things without having any idea what they are Sure but she will use the Spotify app or the Sotheby app to buy NFTs Spotify and Sotheby on the other hand they will not even use a blockchain. Just like Coinbase doesn't use a blockchain This whole decentralization mania solely work when people are are terribly scared of something: Government diluting their…
I disagree. Decentralization makes it possible to cut out the middle man, Sotheby is no longer needed to do art deals, you can buy directly via smart contract. Will some people buy via Sotheby's still because they provide value in curating items? Sure but they will have much more competition than they do now. It also makes new things possible, for instance the original artist could get a cut of every resale of his ar…
> Sotheby is no longer needed to do art deals, you can buy directly via smart contract.
Sotheby's was never about the actual transaction, there has historically been little technical barrier in this area - the real barrier has been grift, fakes, and limited market pools. Crypto doesn't solve any of these things, so they will remain the real barrier.
> for instance the original artist could get a cut of every resale of his art. People can own parts of art, music etc. Artists can go directly to their fans.
There is no technical barrier to any of these things now, other than the difficulty of setting up contracts. You can speculate that making the contracts easier to set up will result in lots more of it; but that is a pretty strong assumption that this is the "real" barrier. Like the fine art case, it may well not be. I suspect that in some areas it will result in some interesting things that are low enough value (at least per transaction) that nobody bothered to figure out an agreement on them, particularly across borders. But this has a huge risk of being shut down for being at minimum tax-evasion adjacent, even if useful.
> I could send you euros and you receive in usd, it passes through a defi smart contract on the way without any of us knowing.
This is easily done now by traditional financial transactions, the only problem is the FX risk and transaction fees may be a) higher than you want and b) unpredictable.
Neither of those things are "solved" by using defi, you are basically hoping that the fees are/remain smaller, and possibly handwaving about the FX risk on some future with the underlying is useful to both parties.