0/ So I just finished reading @jlppfeffer 's excellent analysis of cryptoassets. He's an ex-KKR partner. Very good read. This is circulating many institutional investors desks right now. Comments in this thread
dropbox.com/s/klirxaadd0z2…
dropbox.com/s/klirxaadd0z2…
1/ his basic argument is that the ability of all MoE functions collapses to 0 because M = PQ/V and V will trend towards infinity. I agree.
2/ IMO, most interesting section was when he compared SoVs to MoEs on page 10: the only mass-scale example in the world today is physical cash. 
3/ While this is technically true, it misses the forest for the trees. If you use BOFA or Chase for debit account, whether you use Visa to pay starbucks or Venmo to pay your friend for poker is an implementation detail. You store your wealth in USD...
4/ ...unless you want to invest it in something that is cashflow-producing (e.g. real estate, stocks, bonds, etc,) some sort of trophy asset (e.g. art or basketball team) or in something that's explicitly censorship and inflation resistant (e.g. gold).
5/ Author then goes on to say that BTC basically works as a censorship resistant SoV today without substantial modifications - which is true. And that it has strong network effects, using Metcalfe law, which rounds to n^2 effects.
6/ I disagree on strength of network effect of money. With permissionless networks and cross-chain atomic swaps, network effect should collapse towards log(n).
7/ Tying this back to my point above about storing non-invested USD in BOFA/Chase, why wouldn't people store their wealth in the asset that's most useful? Yes you can convert gold to buy food if necessary, but why is gold separate from cash to begin with if govs can't inflate?
8/ Separately, I believe that our perceptions of what money should be will evolve. Our definitions of money have evolved materially. Yes SoV, MoE, and UoA, but money started as debt, then shells, then precious metals, then just gov-backed (guns and bombs).
9/ One of the obvious missing "features" of money is programmability. If you think that the world will come to expect that money itself is programmable, then SoV moves strongly towards smart contract platforms {fin}
