(1/6) If your currency was rapidly depreciating what would you buy to protect your purchasing power?
The answer for Euro and Pound holders has overwhelmingly been #Bitcoin
This is notable because we did not see the same trend in previous crises in 2020 or 2021
A brief 🧵
(2/6) What about other major crypto assets? Interestingly we haven't seen the same trend with Ether. Recent volumes are fairly unremarkable compared to the last 2 years. Hard money vs the world computer?
(3/6) "Real hard money" in Gold actually DEPRECIATED during the Sept 13th Euro sell-off and Sept 26th Pound drop off
(4/6) Is the hard money thesis of Bitcoin playing out before our eyes? Probably not. But this flight to Bitcoin is an interesting development and could be one stepping stone towards BTC being considered hard money.
(5/6) We’ve seen emerging countries choose to purchase Bitcoin at much higher rates than developed nations for years primarily due to local currency weakness. The top 20 countries in crypto adoption are ripe with countries with currency problems: Turkey, Brazil, Russia, Nigeria.
(6/6) The story of Bitcoin being hard money won’t play out overnight but over years. This could be the first real domino to fall.
Heard about the three zkEVM announcements (@zksync, @Scroll_ZKP, and @0xPolygon) this week and unsure about wtf a zkEVM even is or what it means for Ethereum?
Lets start with the zk part. Each zkEVM plans to operate as an L2. L2s batch trans for cheaper costs + faster local processing while preserving sec of L1. L2s can by zk or op.
ZKs are the gold standard for speed/cost/sec but until now it hasnt been pos to have support on the EVM
zkEVMs will allow users to copy their smart-contracts from L1 to a L2 zkEVM. Inheriting the speed/scalability of L2, while keeping the sec/underlying proprieties of L1. There have been debates about what it really means to be a zkEVM and if any of these solutions meet the def
Dogecoin is the world's most expensive running joke at $9b in mkt cap
But its also surprisingly a:
-top ten cryptocurrency
-the second biggest PoW coin
-one of the oldest coins in the industry
Is there any dev path, roadmap, or underlying value? Or is it all just a gag?
After sitting undeveloped for yrs, in 2021 Dogecoin found a recommitted group of developers.
They have put together a roadmap to try and bring the tech stack up to date and rebuild the back end in an effort to help merchants add Doge payment capabilities for customers.
For actual usage today daily active addresses and transaction counts rival (and even surpass) some bigger protocols.
.@dYdX recently announced it is leaving the @ethereum Layer-2 (L2) ecosystem to launch its own @Cosmos chain.
This decision prompted many investors and builders to reconsider the tradeoffs between these two ecosystems.
Today Cosmos allows builders more flexibility (language, inflation sch, trans fees, security, design, account model etc), interoperability between ecosystems, and also allows them the potential for value accrual (MEV, transaction costs, etc) for their own native token
There are also advantages today that likely will change in the future namely as L2s scale: Cosmos also avoids a centralization vector that L2s currently have in their sequencers and the higher and more predictable throughput of using Cosmos.
Staker Yield Model Prediction: Real yields of 7% to 13% at the time of the merge. These will scale down over time.
Some assumptions-> Eth Fees per month here (dune.com/queries/877691) are the biggest variable. Hist best month Jan ~425k ETH. Worst month March ~150k ETH. Amount staked also key 600k per month per is LT avg but we have been more like 300-450k recently.