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:
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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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Sound Money is the killer app.
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