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/biz/ - Business & Finance

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18555022 No.18555022 [Reply] [Original]

ETH 2.0 is only a few months away, and could prove to be the largest economic shift in society for a few key reasons

https://mobile.twitter.com/AdamScochran/status/1250938829449674752

Ethereum Economic Cases
Partner at Metacartel Ventures, Adam Cochran, has taken a deep dive into the economic potential of Ethereum and how the next iteration of the platform could be a game-changer.

>> No.18555033

One possible reason is that large investors known as ‘rent-seekers’ may switch to Ethereum once proof-of-stake is running. Stable returns of around 3-5% are eyed by these types of investors due to the scale of their principle.

If large quantities of ETH are purchased to make similar or better returns on staking, then the supply shock would drive up prices. This price surge, according to Cochran, could initiate a second round of staking investments as returns are multiplied.

The two events above would cause a retail fear of missing out event, pushing markets even higher. Retail investors are usually late to the party, but their actions could add to the market momentum as they did in 2017.

>> No.18555044
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18555044

PFFBBBBTTTTTT

>> No.18555054

>>18555044
A daring reBUTTal

>> No.18555065

Additionally, there are far more fiat on-ramps now than there were three years ago, and better regulation has added perception of safety to the industry.

Actual Realized Demand
Cochran cites the best reason for growth will be actual demand:

“The best reason for this growth, and one that only ETH2.0 can really claim, is actual demand for the asset, as use for gas in a decentralized computer.”

>> No.18555069
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18555069

>>18555054
>smort contracks

>> No.18555081

>>18555054
You cocksucker. Got me. Jej.

>> No.18555121

Reference Metcalfe’s Law, which states the effect of a telecommunications network is proportional to the square of the number of connected users of the system.

In other words, the more actual demand there is to use the system, the more the price goes up because there is a real underlying value being created for the user.