The Bitcoin Standard by @saifedean is phenomenal. BUT Stock-to-Flow ratios in crypto are complicated: best to model StF of the staking resource, not just the coin. BTC hashing power had an awful StF ratio!
How are they complicated? It’s existing supply to annually incoming supply. That’s it
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It's not quite that simple,
@MustStopMurad: flow of a virtual resource depends on consensus, reached via voting weighted in some staking resource, which itself has a Stock-to-Flow ratio. Capping base resource moves inflationary pressure up 1 level of abstraction, to meta-resource -
To be clear, I'm not saying that BTC doesn't have a great stock-to-flow ratio. It does. But indirectly monetizing resources like hashing power that were not previously in demand = suboptimal per game theory. The "staking asynchrony" it produces is a major focus of my work.
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What do you mean by “staking asynchrony”?
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I mean that units of the crypto asset acquired at t2 require ≫ staking resource than ones acquired at t1. It's a security problem for PoS currencies. Mostly an economic problem for PoW ones, in that it makes ownership of the PoW-mined assets less efficient as "proof-of-wealth."
End of conversation
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