Bankless 3 - Economic Bandwidth
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Mar 16, 2020 Explore the intriguing concept of economic bandwidth and its crucial role in the crypto revolution. The hosts discuss how economic pressures influence investor behavior, particularly during market uncertainties. Dive into the dynamics of Ethereum's gas fees and their connection to market volatility. Discover the unique value of Ether and its impact on DeFi protocols. The discussion also highlights DAI's potential as a global currency and emphasizes the importance of a trustless economic framework in shaping the future of digital assets.
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Fat Protocol Thesis
- The "fat protocol thesis" suggests base-layer protocols accrue primary value in crypto.
- This contrasts with the internet, where applications like Google and Facebook capture most value.
ICO Craze Misapplication
- The 2017 ICO craze misapplied the fat protocol thesis, assuming any token could accrue value.
- Many tokens failed because they were subpar currencies, highlighting the need for strong money protocols.
Ether as Money
- Ether is more than just gas; it's used as money in various ways within the Ethereum economy.
- This includes use as a store of value, unit of account, collateral, and medium of exchange.