Stay up to date on all things crypto and blockchain

Token Daily is a place to discover trending news and products in crypto and blockchain.

Valuing Cryptoassets from the Ground Up

The coins and tokens created with cryptocurrencies are curious things. We shouldn’t really call them currencies because they do far more than exchange value. They aren’t quite commodities either…

Article posted 4 years ago

with or if you'd like to join the discussion.
Neil Deramchi
TL;DR "You might expect cryptoassets to gain value with adoption, but this equation suggests the opposite. At scale, cryptoassets will likely achieve hyper efficiency that reduces the price"
[wait for the brighter conclusion]
"This would hardly discourage activity, though, but rather expand it. A substantial amount of money would flow through the system, increasing with scale. The equation therefore suggests it would become a commoditized network that processes all of that activity while claiming only a slim margin — which, on billions of dollars in operating costs, is still pretty good. That leaves ample financial incentive for developers to build the network and keep it running."
0
X