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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
https://abs.twimg.com/hashflags... draggable="false" alt=""> and #Ethereum ecosystems both spend far more on network security (PoW mining) than research, protocol development, grants, etc combined.
The #Bitcoin
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2/x This is an obvious misallocation compared to traditional systems/networks.
The powerful social force driving this misallocation is "legitimacy". I& #39;ve also heard this be called "social consensus" or the "social contract".
The powerful social force driving this misallocation is "legitimacy". I& #39;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& #39;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& #39;s the reason why I value #Bitcoin https://abs.twimg.com/hashflags... draggable="false" alt=""> 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.
