Discover and read the best of Twitter Threads about #cryptonetwork

Most recents (11)

1/ Given the governance battles we currently see everywhere, winning #cryptonetworks may emerge by merely persisting through "wars of attrition."
2/ If true, we currently focus too much on present-day dominance, underweighting a cryptonetwork's ability to deftly navigate the future.
3/ In the words of @Shaughnessy119, being able to deftly navigate the future allows a cryptonetwork's "tech to compound without fracturing."
Read 9 tweets
One of my favorite interviews I've done over the years in #crypto. A balanced & calm conversation between a #bitcoin minimalist and a crypto VC. whatbitcoindid.com/podcast/chris-… 🙏 @PeterMcCormack
A few too-long-didn't-listen takeaways: many #cryptoassets are shaping up as supply-side focused instruments that'll accrue value for providing suppliers access to "value-flows," similar to how a stock provides access to "cash-flows." Demand-side may not need native token at all.
Such #cryptoassets are more a replacement for equities, than for currencies, and majority of value will be projected via "discounted-value-flow" (DVF) models.

For those that have a demand-side component, there is likely to be an MV = PQ sleeve, requiring sum-of-the parts models
Read 24 tweets
1/ An accidental change in fund structure doesn’t mean the mindset changed.
2/ To be clear, it's a good thing for #crypto that more people are structuring as VCs than HFs, as the incentives are better geared for long term value creation.

Hence this prediction last year 👇
3/ But I don’t see how an investor that profits from going long & short (many HFs) can later claim to sincerely support a #cryptonetwork over many years, as a VC should.
Read 4 tweets
1/ Recapping @alexhevans presentation of @MakerDAO adoption last night.

In its first year, Maker issued roughly $200 million in loans. For perspective, it took @LendingClub five years to originate $250 million in loans.
2/ Telltale sign of a “#cryptonetwork working” is it being able to scale far more quickly in the service it provides than a comparable company could.

We saw it with #Bitcoin, we’re seeing it with @MakerDAO.
3/ Almost 2% of all $ETH outstanding is now locked in @MakerDAO (red line), with > $70M in loans currently outstanding (blue line).

Loans outstanding = current market cap of $DAI: coinmarketcap.com/currencies/dai/
Read 13 tweets
.@elonmusk you refer to companies like @facebook as "a cybernetic collective of people and machines," which I ❤️ as an idea, but I think is even better when applied to #cryptonetworks like Bitcoin.
Collectives imply that *all constituents* work together w/ a common interest.

With companies, it is the shareholders that have a common goal of profit, while the rest of the constituents (consumers, suppliers, 3rd party devs, etc) eventually end up short-changed due to that goal
By uniting all constituents around a shared repo of open source software, which lays out the rules of the game (and how those rules are changed) for the supply-side, demand-side, & investors, #cryptonetworks are an upgraded version of the "cybernetic collective" you reference.
Read 5 tweets
1/ A few reflections on @andrewrsorkin's interview of Jay Clayton last night. First off, it left me feeling more hopeful for #crypto's regulatory situation.
2/ Clayton and the SEC are not out to get #bitcoin and #ether, this should be obvious by now.

Reading between the lines of his words, it seems Clayton considers $BTC a currency, and $ETH a commodity.
3/ In differentiating a currency from a commodity, he stressed that commodities generally have an “industrial use” beyond serving as a means of exchange.

Will be interesting to see how granular regulators get in classifying the great diversity of #cryptoassets before us.
Read 11 tweets
1/ This is the best step forward I've seen in months on refining MV = PQ to arrive at a rational utility value (RNV) for a #cryptonetwork.
2/ "We think that a blockchain’s rational utility value is better modelled as today’s utility value plus discounted additional current utility values (ACUV) for every year to infinity." -@HASHCIB medium.com/@HASHCIB/the-n…
3/ Good musings on a forward looking NVT Ratio: Network Value to Future Transactions (NVFT) ratio.

"Traditional finance places more value on price to future earnings ratios than on price to historical earnings. By the same token, it makes sense to use NVFT to value cryptoassets"
Read 3 tweets
A prolonged bear market is the best thing #crypto could've asked for to expose projects that never planned to deliver in the first place.
The fumes of exchange listings, prominent partnerships, and events + conference appearances will only carry a #cryptonetwork so far.
The only way to survive over the long haul is to build things people use, and if you have a #cryptoasset, making sure the demand-side and/or supply-side relies on it to access/provision the service.
Read 3 tweets
Now that #crypto is lush with cash and talent, focused execution will separate the wheat from the chaff.
Users, developers and investors will only wait so long. Being a few months behind schedule is tolerable, but beyond that eyes start to wander to better executing alternatives.
Those alternatives then gain mindshare, creating a self-reinforcing cycle as user, developer and investor momentum builds. If the prior leader continues to not execute, this momentum can achieve escape velocity where the prior leader becomes the alternative and vice-versa.
Read 5 tweets
In #crypto there is a straightforward avenue to supply creating its own demand.
By initially doling out the money to the supply side for providing the good or service that the #cryptonetwork specializes in, there is then organic liquidity in the asset *and* the service, which the demand side can participate in.
Whenever a supply sider transacts the cryptoasset they earned, they are then contributing to the GDP of that #cryptoeconomy.
Read 5 tweets
1/ In 2017, the consensus structure to manage cryptoassets was a hedge fund. In 2018, we will see a trend of crypto-specific venture capital funds.
2/ We are seeing this already, with many of the prominent crypto hedge funds moving to raise venture capital funds— a good thing for the industry.
3/ Venture funds have committed capital (e.g., @placeholdervc’s is 10 years), which shields the fund from redemptions, providing more stable capital & allowing the managers to focus on helping the crypto-entrepreneurs.
Read 10 tweets

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