Ethernomics 101: What Makes Ether Valuable?

in cryptocurrency •  6 months ago 

Whether you're a fan or a sceptic of Ethereum, a lot of people have a tough time understanding what exactly gives Ether, its underlying currency, value.

In a recent thread on Twitter, Ryan Sean Adams wrote about "Ethernomics 101", that explains some of.the fundamental reasons why Ether is valuable.

That's what we'll be going through in this video. As always, please let me know what you think!

DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.

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At this point I am the most bullish on Ethereum over any other project. As a programmer I view smart-contracts as one of the most important developments in this space.

Ethereum has more developers (when you include ERC-20 tokens) than any other platform. For me, the whole concept of "Ethereum Killer" projects is laughable. There is no direct competition here. If you want to make gains in one area (speed/efficiency) you have to make sacrifices in another (decentralization/trust). Most smart-contract platforms will find their niche without having to "kill the competition". In fact, many of the killer dapps of the future will be cross platform, existing on multiple chains.

Another huge advantage to having so many coins is diversity and decentralization. EOS might be more centralized than ETH, but EOS and ETH together are more decentralized than if one of them had never existed. Each project gives fresh incentive for new investors/developers to jump on board at the ground floor. We are so used to the big fish eating the small fish that we never stop to consider the metaphor of a school of fish; all protecting each other. That's what open source economy is all about: collaboration and interoperability.

Venture capitalists wrongfully project cutthroat capitalism onto the space, demanding that 90% of all startups die. It isn't going to happen. No single project can corner the market using the traditional tactics of regulation and patents / IP law.

I like the fact it’s faster and cheaper to use than BTC. Thanks mike

I didn't have time to watch the video but I think it's pretty clear what Ethereum's fundamental value is. It's a censorship free platform for smart contracts. Since it's quite slow and expensive to use in its current PoW incarnation, it's no good for gaming or mass adoption of any other high-traffic app. It's good for financial applications, though.

The way you spoke about ether I was really looking and considering the potential valubility inside of my mind really. It's fundamental values are just really it.

we do.

I think ether is more valuable than btc because of its interface and so many platforms have been built on etherum.
In years to come, ether might be more valuable than btc itself.

Waited 4 years for ETH to have faster transactions 😬

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I think the analogy to oil is a great one as it shows how it’s utility can serve to move value around an ecosystem as both energy and a store of value.

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Actually I am not a fan of ethereum but I keep wondering why are many projects just keep building up on the platform of ethereum