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1/x Quick morning brain dump after reading the latest piece by . @VitalikButerin. All personal opinions, not financial advice.
The #Bitcoin
and #Ethereum ecosystems both spend far more on network security (PoW mining) than research, protocol development, grants, etc combined.
The #Bitcoin
and #Ethereum ecosystems both spend far more on network security (PoW mining) than research, protocol development, grants, etc combined.
2/x This is an obvious misallocation compared to traditional systems/networks.
The powerful social force driving this misallocation is "legitimacy". I've also heard this be called "social consensus" or the "social contract".
The powerful social force driving this misallocation is "legitimacy". I've also heard this be called "social consensus" or the "social contract".
3/x Legitimacy is a very special thing in this space: it gives NFTs their value, allows chains to recover from 51% attacks, and is at the absolute bottom of the "assumption stack" below even "blockchain".
4/x IMHO, blockchains can only gain this legitimacy when you combine transparency, decentralization, and participants who value those things above all else.
5/x Justin Sun acquiring Steem and Hive forking from it is a great example of how this "social consensus" layer ultimately dictates the legitimacy of blockchains.
6/x Likewise, the ETC/ETH valuation since the hard fork shows how this force is arguably more powerful than even the underlying blockchain technology of these networks.
7/x I've recently found myself describing my hypothesis for "doomsday scenarios" for certain blockchain networks, and why I believe the market overvalues the risk associated with such scenarios.
8/x This idea is fundamental to my thesis and it is what allows me to take on a level of exposure to this space that many others would not. It's the reason why I value #Bitcoin and #Ethereum and not many other Layer 1 Blockchain protocols at this moment in time.
and #Ethereum and not many other Layer 1 Blockchain protocols at this moment in time.
9/x As more and more users/developers/investors recognize the current state of legitimacy in this space, I believe the Ethereum ecosystem (and $ETH) will absorb the majority of value that shifts into this ecosystem over the next 1-2 years.
10/10 Despite this thesis, I challenge myself and others to avoid becoming "maximalists" for a certain blockchain. Rather, we should ground ourselves as maximalists for decentralization and transparency (legitimacy) above all else.
