Email of the day - on Ethereum as a crypto panacea:
Comment of the Day

July 06 2021

Commentary by Eoin Treacy

Email of the day - on Ethereum as a crypto panacea:

I value the input you provide Eoin. I however disagree with your comment that cryptos will next be of interest in 2023. Ethereum is a disruptive technology platform with strong network effects which is growing rapidly. In addition, the supply of ETH will diminish by about 85% (a triple halving) when Ethereum transitions from Proof of Work to Proof of Stake (POS), likely in December or early next year. Electricity required to power Ethereum simultaneously goes down by 99.99%. In addition, EIP1559 goes live at the end of this month, which both improves the user experience and burns the bulk of the fees (paid in ETH) - the combination with POS probably results in the number of ETH declining on a consistent basis. Holders of ETH can stake their ETH to own an attractive yield. In short, it is the most compelling opportunity I’ve come across in my decades as a money manager.

I have no strong opinion on Bitcoin. I think its security model is flawed and I doubt it will stand the test of time. I however think the odds favour most crypto assets having a strong run over the next 6 months, perhaps driven by the growing understanding that blockchains are a disruptive new technology that is far more efficient and decentralized than the financial systems of the past.

Eoin Treacy's view

Thank you for this email and your valuable insight. My contention has been that in order for crypto to succeed it will need to go the way of Encarta and AOL Online. We paid for these services when the internet was still young because they were valuable tools with no real competition. Today they either do not exist or are inconsequential. The internet on the other hand has become part of the economic landscape. 

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