271–280 of 302 posts
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.
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 point is that customers are already paying a lot of fees in Ethereum for financial services on the blockchain. Right now that money goes to run a lot of powerplants and gpu farms but will sometime in the future go to Ethereum staker. PoS coins are a combination of money, store of value and investment in a financial service "cloud".
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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
Scarcity is also not something that you want from a currency, fundamentally. A currency needs to be abundant when needed, and scarce when oversupplied. That's the point of controlling the money supply based on economic growth rates, and the entire reason we have a Fed. I believe strongly that cryptocurrencies have a strong future, but what is really needed is a crypto that automatically manages its money supply. In t…
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…
Exactly, Ethereum is a better Store of Value than Bitcoin, not only because it is scarce, but because it provides utility, which creates demand. People need ETH for: * Paying transaction fees to use the network. For example, Visa is now settling payments with card issuers using USDC on Ethereum, so Visa needs to pay these fees with ETH. * Collateral in financial applications: Over 11 million ETH (over $24 billion) ha…
Did Etherium actually switch to proof of stake? That's been talked up for years, but has been delayed several times. The original date was January 2020, but as of now, I can't find a firm date. One Etherium page intended to get people to lock up ETH to stake the system says "Withdrawals won't be live right away. You won't be able to withdraw your stake until future upgrades are deployed. Withdrawals should be availab…
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Exactly, Ethereum is a better Store of Value than Bitcoin, not only because it is scarce, but because it provides utility, which creates demand. People need ETH for: * Paying transaction fees to use the network. For example, Visa is now settling payments with card issuers using USDC on Ethereum, so Visa needs to pay these fees with ETH. * Collateral in financial applications: Over 11 million ETH (over $24 billion) ha…
Utility? The transaction fees are around $30 USD now.
High fees means there's tons of demand to use the chain.
Yes, it sucks for small users who are priced-out, but scaling solutions such as rollups should be launching within the next few weeks.
ah. Learning what ethereum is by looking into a random pdf by an unknown twitter user. Never change your pseudointellectuallity hn, never change
The start of the document: >The purpose of this memo is not to denounce Bitcoin. Bitcoin enjoys a growing institutional spotlight, a compelling narrative as digital gold, and a portfolio allocation as an inflation hedge. However, institutional allocation into the Ethereum ecosystem is currently low... You can denounce bitcoin for the CO2 emissions though. At least etherium is trying to go proof of stake. If instituti…
Put another way, if institutions pile into bitcoin, the value of produced energy will rise, and green energy infrastructure projects which were previously marginal would become profitable and thus executed.
Useless uses of energy cannot be construed as good for the world.
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Sooner or later it will have to end. https://en.wikipedia.org/wiki/Minsky_moment
I don't think so because the entire stock market would collapse if the reserve banks stopped printing money. Smart people look at Bitcoin and Ethereum and think "wow that's inefficient, if the banks raise interest rates, they're going to get wiped out" but they don't realize that most corporations are just as capital inefficient and are in the same position. They are both unprofitable, therefore both worthless... Doe…
Before the pandemic, the Fed tried to wipe out the crypto space by raising interest rates... Then when they realized that their policies were threatening to take out the entire stock market instead, they decided to suddenly drop interest rates back to 0.
It seems like the Fed was trying to find a sweet spot of interest rates which would wipe out all speculative investments but would allow non-speculative investments to stay afloat... They simply didn't anticipate that stocks might be more speculative than crypto.
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Why should it be a single world currency? Why not just have a system of multiple currencies which can be accepted interchangeably as payment? Automatic valuation and conversion of a cryptocurrency is possible. It can even be done in a decentralized way without trusting anyone.
You get much greater interoperability / a much larger market when everyone is on the same ledger, using the same protocol to exchange value. There are use-cases where a smaller more specialized ledger will be more optimal, but there is a very large set of use-cases for the 'financial protocol with a huge number of users'.
You could have multiple cryptocurrencies which support the exact same public API and clients could figure out their relative values automatically by crawling DEX markets (looking at current prices and daily trade volumes).
People who do business internationally are already used to the idea of accepting payment in multiple currencies - With the right set of tools, the friction involved in accepting different cryptocurrencies (e.g. within the same ecosystem) can be reduced to nothing, in fact, it might be a profitable competitive strategy for a business to accept more different cryptocurrencies (they can charge a big premium for accepting more exotic/low volume tokens).