"The reason gold was used as money more than granite is no longer relevant." I disagree. Yes moneys are stories, but they are not arbitrary stories. The money-winners eventually emerge due to possessing very specific characteristics.https://twitter.com/TusharJain_/status/1009926106504400897 …
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7/ Your idea of Digital Gold and Digital Cash and their respective ‘network effects’ is misguided. All cryptocurrencies are simutalenously Digital Gold and Digital Cash, just at different extents and different stages.
@pierre_rochard described the false dichotomy here:Show this thread -
9/ American investors might allocate 0.1% to BTC even if they don’t expect the Dollar to collapse anytime soon.
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10/ BTC is a global asset. and it’s “enemy” for the next 10 years isn’t the USD but rather some wealth parked in the tail end of weaker 3rd world currencies + monetary metals + other instruments people use as SoV.
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11/ I also believe people don’t need to “onboard” fully. Even if asset managers and HNWIs allocate 0.1-0.3% of their assets to, say BTC, while still holding even more of their local fiat, it is enough to start to drive the global story upwards.
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12/ dApp usage is abysmal right now. Some even question how many use-cases even need a dApp. Sure, some ideas come to mind, but will there really be 100s of globally popular dApps anytime soon?
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13/ The problem with the smart contract platforms, is that their system need to make tradeoffs between being the best SoV, and being more usable as a dApp platform. It’s difficult to be both the soundest, hardest money imaginable while providing best-possible UX for dApps.
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14/ If you give ETH a hardcap, this would require more fees. More fees = worse dApp UX. The very fact that ETH wants to do a hardcap, i.e. become more BTC-like, says enough on its own.
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15/ Ethereum is between a rock and a hard place. It isn’t as good at being SoV / Sound Money as BTC, and it is likely not going to be as smooth / cheap / frictionless at being a dApp platform as more centralized platforms like your beloved EOS.
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16/ At the same time, there is no chance on Earth that something as centralized / censorable / “governed” / wet code-like / borderline-permissioned / mutable as EOS will ever be a global monetary standard.
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17/ Your favorite dichotomy of “SoV thesis” vs. “Utility thesis” is misguided. Why? Because having an uninflatable, uncensorable, hypersecure SoV *IS* a great form of utility in and of itself, arguably some of the biggest utility.
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18/ The Internet analogy is moot because the Internet itself didn’t have multiple neo-money forms competing on the underlying layer(s). This is a different battle.
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19/ I believe ETH and it’s gas mechanics is more of a commodity than “active usage as money”. I also believe that smart contracting functionality will get commoditized. In an of itself it is not enough of a moat to force itself to be the ultimate SoV.
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20/ One of the killer apps of Cryptocurrencies is disinflation / uninflatability / fixed-supply.
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21/ I also don’t believe the path to 10T will be driven by ‘average people’ but rather entities and individuals with large amounts of wealth. And, as I said, in my view, those people don’t care about blockchain tamagotchis and quirky DAOs.
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22/ I think biggest determinants of SoV are: 1. Security (Cost of Attack, QualityCode) 2. Censorship-resistance 3. Immutability / Irreversibility 4. Disinflationary Monetary Policy 5. Credibility of/Hard to change Monetary Policy 6. Distribution of coin ownership/Gini 7. Privacy?
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23/ BTC is superior to e.g., ETH in most if not all of the above.
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24/ In the this free, borderless market, I believe value will accrue to the most sustainably safe disinflationary coin. It is simply irrational for agents to park their wealth in an inflationary system when a disinflationary / fixed-supply one exists.
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26/ Most importantly, people want their day-to-day MoE to be stable. No one is going to actively hold some portion of a volatile ETH as day-to-day currency / for day-to-day spending purposes if it's volatile. The "SoV" phase needs to be at least partially fulfilled first.
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27/ Finally: Just because someone's first introduction to the Blockchain / crypto world is going to be done through an ETH/EOS dApp, it doesn't mean that their "wealth" will be stuck in those coins forever. If anything, ETH could act as a gateway drug to sounder money. (BTC/ZEC)
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End of conversation
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