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@ryanberckmans
Aug 20, 2020 • 4 tweets • 1 min read • Read on X
1/ As Ethereum succeeds, so must ETH.

Here's the formula

eth2 revenue = ETH spent on gas

eth2 cost = flat cost of global validator hardware and electricity

eth2 profit = (revenue - cost) ~= $50B/yr in five years with ~70x growth in total fees

2/ It may be a common misconception that validator rewards or EIP-1559's fee burn are revenue streams for the broader population of ETH holders. They are not. They may affect the price of ETH indirectly in all sorts of ways, but aren't revenue.
3/ The value of ETH = utility + digital gold + productive asset.

I think that the scope of "productive asset" should be limited to profit that accrues to all ETH holders.

The scope of "utility" should be much broader and includes being a validator.
4/ Here's a related thread about fee growth in eth2

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More from @ryanberckmans

⟠ Profile picture
Jun 19, 2023
Next week, institutions are debating stablecoins vs tokenized bank deposits.

Participants include the Bank of England, JPMorgan, and the Monetary Authority of Singapore.

Very bullish for ETH 😍

I wanted to share thoughts on stablecoins vs tokenized bank deposits and T-Bills🧵
Curiously, the above debate's overview tees up stablecoins as riskier than tokenized deposits. But deposits are likely the riskier of the two, as they are fractionally reserved and loaned out, whereas stablecoins are moving to "full reserve" models, with no reserves loaned out.
When it comes to stablecoins vs deposits, imo the operative question may be, which has the greater opportunity to pass yield on to end users? Competitive pressures in crypto are extremely high. Today's big stablecoins (USDT and USDC) have a 100% take rate. That won't last.
Read 18 tweets
⟠ Profile picture
Jun 12, 2023
"Significant governments globally are establishing their own stablecoin laws. ... [They] are enacting laws to regulate [their own] US dollar [stablecoins]"

Tomorrow, Jeremy says that to Congress.

American regulatory legitimacy is the final boss. Godspeed Jeremy. Some Thoughts🧵
Let me summarize Jeremy's remarks to Congress tomorrow:

Stablecoins are super useful. Today, by market demand, 99% of stablecoins are US dollars. If America wants to control its own currency's stablecoins and maximize US Dollar stablecoin market share, then we need legislation.
If America doesn't urgently pass a reasonable stablecoin bill, then other countries will soon own & operate the dominant *US Dollar* stablecoins, in addition to more effectively growing the market share of stables in their own currencies, due to the competitive void from America.
Read 6 tweets
⟠ Profile picture
May 16, 2023
The three best books I've ever read on crypto... aren't actually about crypto

1. Devil Take the Hindmost by Edward Chancellor (required reading before next bull. Bankless had Edward on this week)

2. Tomorrow 3.0 by Mike Munger @mungowitz

3. Rainbows End by Vernor Vinge

Why🧵
Devil Take the Hindmost explains how to navigate exuberant bull markets. Most of the behavior we see in bulls has been happening for at least hundreds of years. There's a big-picture playbook to learn and follow.
Tomorrow 3.0 explains why transaction costs matter, how to break them down, and helps you to see why crypto's superpower is selling reductions in transaction costs. Most crypto benefits we discuss, such as composability, are actually specific forms of transaction cost reductions.
Read 4 tweets
⟠ Profile picture
May 16, 2023
Dear @Ledger @Ledger_Support @BTChip

Ledger Recover was a huge project. For many people, it might be a good solution.

However, the community invested in ledgers based on the firmware having no backdoor of any kind.

I have a starter proposal for us to put away the pitchforks🧵
I'd prefer that you kill Ledger Recover entirely.

I'd prefer that recovery be solved downstream in smart contract wallets.

If you don't kill it, I'd prefer that Recover be only available on a new dedicated kind of device.
Unfortunately, we're in a situation where we've all trusted and invested in your company and devices for years, and now you've betrayed us. "Betrayed" is harsh, but it is what it is.

You probably won't kill Ledger Recover. We need an immediate path forward.

Here's a proposal:
Read 6 tweets
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May 11, 2023
imo, the European Central Bank's framing of stablecoins as dodging monetary policy may be mostly incorrect.

Maybe they actually believe this. Or maybe it's prep work for their desired China-style panopticon retail CBDC.

Yet, an EU retail CBDC is likely a doomed project🧵
First off, stables don't dodge monetary policy. A public market of privately-run stables is downstream of monetary policy because stables are subject to the ordinary forces of interest rates and liquidity.
However, given that the EU is the largest Western government actively pursuing the possibility of a China-style panopticon retail CBDC, it seems fair to say that a public market of privately-run stablecoins may be an effective substitute and competitor of such a retail CBDC.
Read 10 tweets
⟠ Profile picture
Apr 16, 2023
Stablecoin legislation has been drafted in Congress

I read the bill.

TL;DR decentralized stables become illegal in the US (DAI, LUSD, RAI, etc. become illegal🚨) while centralized stables, defi, Ethereum, and ETH win big.

High-level summary⬇️
- decentralized stables become… twitter.com/i/web/status/1…
The Act also makes it illegal for a licensed stablecoin to be backed by reserves other than US-dollar equivalents. For example, it would be unlawful for a licensed stablecoin to be backed by reserves of gold, ETH, shares of Google, British Pounds, etc.
It seems really bad that the bill would make it illegal for American businesses or residents to receive unlicensed stables.

Imagine your buddy sends you 50 euro stablecoins for your trip to Paris. Oops, you're a criminal now. Image
Read 4 tweets

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