TD₿: An (Institutional) Investor's Take on Cryptoassets by John Pfeffer
TL;DR The one with the strongest SoV functionality and with good but perhaps not the strongest payment functionality has a strong chance of winning.
Hey Bitcoiners,
The number of cryptocurrencies that have been created out of thin air since 2017 is mindblowing but not surprising.
When there is zero cost to create a new “crypto”, it shouldn’t shock us to see thousands of these assets emerge.
The big debate continues to be whether we’ll see a world where one dominant monetary store of value arises (Bitcoin), or if in the future there will be many different cryptocurrencies used as monies.
I hope you know by now where I stand on this debate. I think most of these tokens, if not all, lack long-term value accrual mechanisms that make sense, and most fail when compared to Bitcoin’s scarcity and durability.
John Pfeffer penned this in-depth overview of these concepts almost 4 years to the date in his paper “An (Institutional) Investor’s Take on Cryptoassets” (12/24/2017).
As all of these other cryptocurrencies compete with one another to try to become the next smart contract platform or world computer, Bitcoin on the other hand has no real competition as the dominant digital monetary store of value.
Bitcoin has already won.
Tick tock next block,
Cory Klippsten
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Quote of the Day
“If a cryptoasset isn’t a dominant non-sovereign monetary store of value (“SoV”), it’s somebody’s working capital.” - John Pfeffer, Co-Founder at Pfeffer Capital
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