Is scalability bad for price?

[Anonymous No.50441973]

ETH has a high price because you need a lot of it to use its network.
Something like FTM, KDA, MATIC or NEAR only require a user to hold a small number of coins to use the network by design. However just because they are "better" or more scalable on paper doesn't mean the price and market cap must be higher than ETH. By having higher scalability you have much smaller demand for such coins.

[Anonymous No.50442044]

>>50441973
sauce?

[Anonymous No.50442590]

to be blunt, the narrative that "gas needs to be expensive otherwise the coin is worthless" is Stockholm Syndrome. It's what the community tells itself instead of facing the reality: ETH has and forever will fail to scale, and that will fundamentally limit how much ETH can grow. In my opinion, ETH's pretty closed to maxed out growth wise and ETH2.0 is still a nonsensical fantasy that the ETH holders from genesis tell the masses to keep the price up.

The entire market sector started out in pursuit of creating digital cash. Physical cash is free to use, and still valuable. Why should it be that digital cash must cost money to use? The best explanation I have is a cultural one--demand for coins for gas has been used to justify token value for 3ish years now... which is just long enough for people to think that the concept is fundamental to crypto (vs something new thats quite unproven in practice).

The coin itself has limited supply. The coin is a scarce resource which drives the price of the coin -- assuming sufficient demand. Transactions are not supposed to be scarce and there's no need to limit the supply by more than covering operational costs of transactions -- which should be low and even go down if demand increases, because of economy of scale.
I don't think that it was the original purpose of Bitcoin and Ethereum to not be useful as a money. I think, those coins just failed to serve their purpose. We'll see what happens if more scaleable alternatives become more widely available

If what you say is true, then the US dollar would have fallen out of use after we dropped the gold standard. It didn't. Your hypothetical model of what drives value simply doesn't line up with what we have seen in the real world.
USD has value because it is the native currency of the most influential country in the world. KDA has value because it is the native currency of the only blockchain in existence right now that can scale to meet worldwide demand.

[Anonymous No.50442601]

I understand where you're coming from in this, because the logic of "tokens are needed to pay gas, and thus that need drives the value of the token" is a self consistent logical statement. My reply was to point out that, outside of crypto, financial layer-1 systems that are/near frictionless tend to accrue value/users/ecosystems very quickly. Paper money is one example, while the movement from PayPal -> Venmo (and why PayPal bought them) is another wholly different example of a similar flavor.
While tokens needed for gas is self-consistent, I'd argue the logic is limited in how important it is. For example, does ETH's or BTC's high fees really drive up the token value beyond 5% of total value? Moreover, and I suspect this is the true state of affairs: it's possible that high fees can simultaneously drive a token's value up AND limit a token's value by limited usage/adoption. Then the question is what is the net impact of high gas fees?
I'd argue that the net impact varies on token value/market cap. For sub-$100MM market cap layer-1 tokens, and for many/most dapps, the net benefit of high fees may outweigh the retarding effects on growth/usage. Past that point though, it's hard to see how a $5 per tx gas fee is anything other than a net negative.
NB: when constrained to the aforementioned discussion's conceptual framework, there's noteworthy difference between PayPal vs ETH/BTC in that while PayPal can continue to grow through acquisition... ETH/BTC cannot. This is a feature, not a bug, of crypto and yet it still has large implications when we consider the historic patterns of value-accruing monetary systems and how they navigate migrations to lower-cost alternatives.

[Anonymous No.50442610]

>>50442590
The fuck? I can see his nipples

[Verification not required. 3 times in a row No.50442621]

I think, this is what makes the difference between a casino and a market place. In a casino you don't expect transactions to be efficient. You want to spent time loosing your money. Transactions are made inefficient by means of rolling dices, throwing marbles, shuffling cards, and you also pay for a red carpet. In contrast, a market places are supposed to be efficient. You don't chose an exchange because they have they highest transaction fees.
Someone who is in crypto only for having fun gambling may want precisely the casino aspect. They might enjoy the high fees of Bitcoin and Ethereum, the suspense while waiting for a transaction to finally settle, and highly complex and economically risky algorithms around POS. And there's certainly some thrill in the drama around Eth2 :-)
But that's not what one would expect from a market place. Many people are in crypto because they think that it can replace existing market places by facilitating more efficient trading. One wouldn't blame a trading system for being too efficient in processing transactions.

>>50442610
haha woops wrong one

[Anonymous No.50442667]

>yet another thotposting thread
you really need to find some meaning in your lives, you mouthbreathers.

[Anonymous No.50442723]

>>50442667
dumb frogposter

[Anonymous No.50443034]

>>50441973
>ETH has a high price because you need a lot of it to use its network.
uhhhhhh

[Anonymous No.50443105]

Idiots who think high gas fees is a good thing are the same idiots that think inflation is good because it helps the economy. Getting hosed is not fucking good

[Anonymous No.50443238]

>>50441973
>FTM
>Scalability
KEK! wrong coin LMAO

[Anonymous No.50444573]

>>50441973
No, L1 projects have value because of utility and TVL. Projects like CNDL and IOTA offer 0 transaction fees, so you sould ask yourself, would you rather use DApps on a chain with free transactions or pay hundreds of dollars to use the same DApp on Ethereum? Over time, people will just stop using Ethereum.

[Anonymous No.50445055]

>>50441973
I never knew I was into Golf

[Anonymous No.50445125]

>>50441973
i hate "pick me" girls who deliberately do crap like this for attention

>but anon i like golf
no you dont, you like the male attention that comes with a hot female liking golf

[Anonymous No.50445300]

I told you it would do this
All the way down again and you didn't sell the top as always
see yourself out tranny losers

[Anonymous No.50445349]

>>50445300
Who are you talking to?

[Anonymous No.50445528]

>>50442667
you have no idea what you're talking about

[Anonymous No.50446771]

>>50445125
she's cute though

[Anonymous No.50446807]

ETH is a bedrock to whole ass other ecosystems like Polygon that are going to be dropping a zkEVM tomorrow. The first one to be exact. The value of ETH doesn't just come from ETH itself.

[Anonymous No.50447561]

Smart money has sold the top
Check the massive wick at the top
That thing is insane

Missed the top again troon
Better luck next time troon

[Anonymous No.50447574]

based golfbunny poster

[Anonymous No.50447592]

>>50441973
That's a man

[Anonymous No.50447999]

>>50441973
On Avalanche the total supply of AVAX is hardcapped and it can scale to Millions of Nodes thanks to how the new Consensus protocol works, all you need for a Node is 2000 AVAX and overall current staking ratio is at 60% and Nodes make between 9 and 12% APY.
Fees from transactions or asset creation are burned forever diminishing the AVAX supply.
Whats really gonna cause the pump is the Subnets, ‘Blockchain as a Service’ is the future and Avalanche supports basically any VM, to run these Subnets you need an Avalanche Node so this means high demand to buy and stake 2000 AVAX.
Companies like Mastercard, Paypal, Chainlink Labs and even the US Government are already looking into launching their own Subnets which will create incentives for all the Avalanche Node Operators.

another thing is DeFi which also locks up a huge part of AVAX supply in all kinds of dapps, there is currently 200+ protocols running on the C-Chain and more are launching almost every day.
Transactions on Avalanche take seconds and cost only a couple cents meaning you can adjust your positions faster and cheaper than anywhere else while on ETH it eats your profits and takes too long when seconds matter.
Have no pictures of whores so take this Emin pic.

[Anonymous No.50448051]

>>50441973
those were $500 sunglasses asshole

[Anonymous No.50448198]

>>50445125
post swing

[Anonymous No.50448561]

>>50447999

[Anonymous No.50448605]

>>50445125
have sex

[Anonymous No.50448886]

>>50448605
>have sex

[Anonymous No.50449224]

>>50441973
SEX SEX SEX

[Anonymous No.50449252]

>>50445125
>women cant be interested in things
go back to /r9k/ loser

[Anonymous No.50449281]

>>50442723
dumb redditor

[Anonymous No.50451397]

Now I'm by no means good at golf. I can accurately drive only up to 180-190 yards. But that looks like an awful swing

[Anonymous No.50452192]

>>50451397
>can only drive 180-190
KWAB I see old women at my range hit it over 200

[Anonymous No.50452305]

>>50441973
no. you can't see the forest through the trees because you think other people trade like you

[Anonymous No.50452372]

>>50451397
nah her swing was fine

[Anonymous No.50452587]

not really, as i see it matic's scaling solutions are contributing to the growth of ethereum by making its blockchain accessible and affordable to both developers and users