5min chapter

Epicenter - Learn about Crypto, Blockchain, Ethereum, Bitcoin and Distributed Technologies cover image

Ali Yahya: Andreessen Horowitz – A16z Crypto Investment Thesis

Epicenter - Learn about Crypto, Blockchain, Ethereum, Bitcoin and Distributed Technologies

CHAPTER

The Different Drivers of Value for Ethereum

The fact that ETH is used for staking makes it a kind of productive asset such that you can actually earn money by holding it and owning it in the way that validators and networks do. That provides that drives some value to the token because it's a productive asset, I think of it as capital. It also is the courtesy with which everything gets paid for in the network. So there are a number of different, and there are more, I think we can keep talking about the drivers of value for a token like ETH. And then it is entirely some kind of monetary premium, which is really hard to approximate.

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