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.
Jun 12, 2023 • 6 tweets • 2 min read
"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.
May 16, 2023 • 4 tweets • 1 min read
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)
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.
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.
Apr 16, 2023 • 4 tweets • 2 min read
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.
Mar 21, 2023 • 11 tweets • 2 min read
The more I think about it, the more I'm not at all worried about CBDCs displacing or even being competitive with our public market of privately run stables on Eth.
I'd go so far as to say that any dystopian CBDC effort is likelier to help ETH than succeed.
First, if CBDCs are a "only" few years away, that's a million years in crypto time, and we'll have ~$1T+ in stables by then. Good luck putting the genie back in the bottle after everyone in the world is using ~permissionless stables for payments, yield, SoV, etc.
Mar 21, 2023 • 5 tweets • 1 min read
It can be frustrating to see BTC enjoy continued strong support from many camps, including some OG eth people. Especially as BTC was flat for five years until Eth arrived and every bull since was from Eth's growth.
Yet what's happening with our apps and L2s can't be stopped🧵
It's absurd for BTC to continue accruing the lion's share of the value in an industry it isn't helping to grow and weighs down with its expensive mining.
BTC may be great at playing the reflexive game, but it's a short-term game because of Bitcoin's structural uncompetitiveness.
Feb 23, 2023 • 27 tweets • 4 min read
An attempt at a deep, strategic answer behind why a Coinbase rollup is a huge deal for Ethereum and ETH
Or: why a Coinbase rollup is the harbinger of many other corp rollups to come🧵
So far, rollups and L2s have mostly differentiated themselves on the basis of their technology. Optimistic rollups. zk rollups. Validiums. Nitro. OP Stack. STARK shared proving. Today, L2s are a tech landscape.
Dec 1, 2022 • 5 tweets • 2 min read
imo, ethereum needs a phone
Coinbase Wallet can't send NFTs on iPhone because Apple says the transaction gas fee is an in-app purchase (!!) and Apple must get a 30% cut.
In response, Anatoly is able to offer Saga, the Solana phone, as a direct solution. Why can't Eth do this?🧵
Many ethereum people are rightly skeptical about the value of a crypto phone and/or the chance of Saga being a success.
The typical and reasonable bear case here is that wallet apps are already pretty good and a new phone is extremely expensive to develop. Both are true.
Nov 29, 2022 • 5 tweets • 2 min read
I'm a huge fan of paradigm's eth work & wagmi and also a user of wagmi.
That being said, I'd like to offer a slightly different take on paradigm's 'acquisition' of wagmi:
"Multi-L1 VC 'buys' key ethereum developer distribution channel and pledges to make it multi-L1"
- what if a VC bought etherscan and pledged to make it multi-L1? this might be the frontend equivalent
- how do we shape our best tools and distribution mechanisms to double down on eth & L2 adoption instead of on "any chain"?
Nov 26, 2022 • 6 tweets • 2 min read
Bitcoin's 3 problems
If Bitcoin can't solve all 3 of its problems, then BTC can't remain on top and will forfeit its huge monetary premium.
Unfortunately for BTC holders, solving all 3 problems is hopeless🧵
Bitcoin's 1st problem
Bitcoin is uncompetitive because of its lack of apps and the high cost of PoW. Even if Bitcoin's other two problems are solved, this problem by itself will result in ETH flipping BTC and the destruction of Bitcoin's monetary premium within, imo, ~4 years.
Nov 25, 2022 • 4 tweets • 1 min read
This week, @CathieDWood went on Bloomberg and said that Bitcoin will be $1 million per coin by 2030.
Cathie is wrong. BTC will never, ever come close to $1 million per coin. It's math🧵
If BTC hit $1 million per coin in 2030, it'd take $82 billion per year in new BTC buys just to keep the price of BTC flat. (This includes the 2024 and 2028 halvenings.)
Nov 18, 2022 • 12 tweets • 3 min read
ETH at $20k+ next bull🚀
But the short term continues to look rough🤕
I wanted to give an update on how I think about maximizing my ETH stack during this global volatility🧵
Pre-flippening, the right way to think about ETH/USD is
ETH/USD = BTC/USD * ETH/BTC
If you're buying ETH with BTC, your best entry price (likely ever again) was the June macro crash, when most of the world still thought the merge wasn't happening.
Nov 4, 2022 • 17 tweets • 3 min read
imo, the era of ETH has truly begun
We're seeing a huge positive shift in ETH investment climate.
This time is different🧵
The merge turbocharged our legitimacy. Institutions & megacorps are onboarding rapidly and at scale. Our multichain world is becoming an L2 world. ETH adoption is immune to the bear.
Oct 8, 2022 • 28 tweets • 5 min read
Businesses, countries, and L1s
Here's why mature L1s may be closer to countries than businesses and why Ethereum is, by far, the best digital country🧵
What's the difference between a business dying and a country dying? When a business dies, it's usually an act of creative destruction and a net benefit to customers. Whereas when a country dies, it's often an ~apocalypse.
Oct 2, 2022 • 31 tweets • 4 min read
Destination: Decentralization
Why the future of web3 will head away from relatively centralized public chains, like most alt L1s, and towards credibly neutral, maximally decentralized public chains, like Ethereum & our L2s 🧵
Ethereum is the most decentralized chain by far. We have a ~monopoly on credibly neutral blockspace. But, how big can our monopoly get?
Sep 27, 2022 • 25 tweets • 5 min read
We're in the middle of a world-changing competition.
Web3 is growing to global ubiquity. L1 token valuations will eventually total $10+ trillion.
So far, eth has become a credibly neutral global settlement layer. But how big will eth get?
How can eth reach billions of users?🧵
The future of web3's ability to reach billions of users will be the same as how consumer tech reaches billions of users today: phones & enterprise relationships.
Sep 12, 2022 • 4 tweets • 1 min read
1/ To suggest that real-world assets won't end up being a large proportion of web3's long-term growth is to misunderstand entirely what it is we're doing here.
Real-world assets and services of all kinds and shapes in web3 and on Ethereum are eventually going to be huge🧵
2/ Public chains offer reduced transaction costs, inherently global markets, better accounting & settlement, etc.
Maximally decentralized public chains (only eth) guarantee the above benefits-- a metabenefit that will become crucial for corp & govt customers in the years to come
Aug 29, 2022 • 23 tweets • 4 min read
A strategy for DAI🧵
Is DAI maximally censorship resistant?
Is DAI the best way to onboard real world assets to defi & borrow against them?
Is DAI maximally risk-minimized, including governance and defi integration risk?
Is DAI a mid-risk basket of multiple independent fiat stablecoin collaterals?
Aug 27, 2022 • 16 tweets • 3 min read
🐬The past, present, and future of flippening progress🐬
It's terrible for us that rn, eth crashes way harder than btc or macro.
Yet, the great news long-term is that eth will and must flip btc within ~four years of the merge.
Let's explore the flippening timeline 2019-2026🧵
Before we start, why does the flippening matter? Don't all boats rise with the tide? Aren't eth and btc symbiotic? btc is the #1 coin and #1 SoV, and eth is the #2 coin and #1 digital oil?
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