0/ Just because an asset is used by millions of people doesn't mean it'll accrue value over time. USD is a great example. Conversely, a cryptoasset must be a good store of value (SoV) to achieve and sustain a high market cap. But what makes a good SoV?
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Replying to @QWQiao
Great tweetstorm. But I don’t understand why Utility is so important for SoV? Fiat has little utility other than it’s utility in being used as a Medium of Exchange. Gold has utility (use-value) for many things that crypto does not. Can you define utility?
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Replying to @MustStopMurad @QWQiao
Laptops have tremendous utility / use-value, 100000x more than diamonds or gold, yet the latter have greater value. I think biggest determinants of SoV are: 1) Disinflationary monetary policy 2) Hard to change monetary policy 3) Security 4) (Privacy?) BTC & ZEC are my bets
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Replying to @MustStopMurad
Utility can be something abstract like “hedge against catastrophic failure of banking system” or “digital collectible”. Hard to quantify really.
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Replying to @QWQiao @MustStopMurad
Maybe another way to think about this is that the utility of a SOV is that it is a SOV. Any additional utility is nice but secondary.
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