2/ #Ethereum's softness also clear in the context of the top 10. In stark contrast to how this bear market started, where $ETH was one of the most resilient assets.
3/ To be fair, #Ethereum is still down less from its all-time high than its aforementioned "next gen" competitors.
4/ But my point is more around *recent* sentiment and how much people are scared by SEC enforcement action, and how that affects $ETH + if people really think $EOS & friends represent a serious threat to #Ethereum's network effect. @dfinity's raise is raising eyebrows...
5/ I still have a hard time thinking it wise to bet against #Ethereum's "feature gravity" & soft network effects, especially given the team's flexibility & speed, but am alert nonetheless.
6/ There has been much-increased talk amongst #dapps of "cross-chain support," which could weaken #Ethereum's value prop along with all other base-layer smart contract platforms, perhaps pushing more value into "middleware protocols."
7/ As with everything else, follow the talent 🙂
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1/ A PoS industry is rapidly emerging that will someday rival PoW in profits and wealth creation.
2/ That's billions in profit and tens of billions in wealth creation for PoS providers (at current PoW levels), with at least an order of magnitude of headroom.
3/ This is despite PoW & PoS having a shared destiny as commodity industries with thin margins.
PoW will converge on the cost of electricity and PoS on the cost of crypto-capital (?).
1/ While new crypto value capture mechanisms can rise to prominence in bull markets, they are tested, hardened and de-risked by bear markets.
2/ Only those that survive multiple crypto bear markets establish themselves as reliable “value capture mechanisms.”
3/ Store of value (SoV) = only crypto value capture mechanism that's significantly de-risked, but that doesn’t mean SoV is the only one that will ever work.
1/ Many tokens currently face stagnant cryptoeconomies, as supply was never spent or earned, but instead brought into existence via balance sheet swaps.
2/ “Balance sheet swaps”= investors in ICOs swapping assets with the issuer, giving birth to a native token without it ever having to go into *circulation.*
3/ Most ICO investors then held the token on their balance sheets, as they never planned to be on the supply-side or demand-side of the network.
1/ When studying non-fungible #cryptoassets, I'm seeing two types discussed: "functionals" and "investment instruments."
2/ "Functionals" are non-fungibles that are meant to be used, a means to access services like ticketing, voting, payment, and more. Best existing examples?
3/ "Investment instrument" non-fungibles are held for their store of value characteristics, be they solely digital things, or derivations of meatspace assets (real estate, art, cars, etc).
1/ Get ready for a predictable #crypto pattern: in the coming months, we will see an increasing number of #Bitcoin maximalists tormenting “altcoin investors” for straying from the mother ship.
2/ The maximalist drum will get louder as we go deeper into the bear market, with #bitcoin falling less than most other coins, and its dominance index growing. coinmarketcap.com/charts/#domina…
3/ #Bitcoin is the benchmark after all, the market beta of crypto, with most everything oscillating at a higher amplitude than $BTC.