This tells the story of a plausible future of how BTC’s adoption will play out.

2020 4Q

~ More companies follow in Microstrategy’s footsteps. Rumors of more corporate treasurers investing in BTC in boardrooms globally. A few listed large corporates announce accumulation of BTC after their buddies have all bought in (Board members, C-suite executives, family, and friends, etc.)

~ Money printing does not stop as the deflationary force of technology is too severe; the new US government formed after Biden’s win begins to adopt MMT as its primary guidance of future economic theory, led by Steph Kelton.

~ The holiday season and strong seasonality pump BTC back to $20k for the first time. …

The past few years have seen a proliferation of base layer blockchains, various implementation of consensus methods: PoW, PoS, some simple in nature (Bitcoin), and some more complex (Ethereum’s Turing-completeness).

But what is the commodity that is actually valuable? Block space.

What is block space?

For the uninitiated, block space refers to the space in these “ empty containers” (i.e. blocks) that will store the data in their respective blockchains. Every single such container starts off empty, and actors who wish to transact in that block will have to bid to include their transactions in the container.

But why is…

By Fiat Minimalist on ALTCOIN MAGAZINE

2009 — Bitcoin launched in response to the GFC. Nobody pays attention.

2010 — Bitcoin start getting traded for money. $10. Joke money. 99.999% of the world unaware. The hodlers base grows to 1000+ people worldwide.

2012 — $100. Cyperphunks stage. Play/Nerd money. Early visionaries accumulate 1k — 10k BTC. These are your future multi-billionaires (in today’s fiat terms). Hodlers base widens to 100K people. Many from this group sold into the 2017 bubble but eventually bought back in 2018.

2013 — Second bubble $1000. Drug money. Silk Road busted! Bitcoin will be banned, It’ll never succeed! 99.9% of the…

This article describes a simple framework for approaching the valuation of the MCO token using a sum-of-the-parts-(of utility). For those unfamiliar, the MCO token is the native token that allows one to derive benefits from its ecosystem, and at a glance can be summed up in this single screenshot. By locking up a certain number of MCO tokens, one can enjoy certain benefits (much like a country club membership). Some folks in the community have helpfully categorized this as crypto-capital: capital that is locked up and its opportunity cost forgone in order to derive benefits from a crypto-economy. …

A happy new year! In bear markets, there are months that go by that feel as though nothing of importance seem to be happening, and certainly it may feel the case for casual observers of the crypto market. From our vantage point however, we’ve never been more excited for the possibilities for Web 3.0.

These are the 10 narratives for the rest of the year we believe to be the most important in driving our capital allocation decisions.

1. Protocol Turf Wars

2019 is a year where we expect to see multiple large Ethereum-competitors come to market. Incumbents like Ethereum…

Online gambling has clearly emerged as one of the most obvious use-cases for decentralization today. Pandering to human greed and a dopamine-on-demand business model, we see the rise of decentralized gambling organizations such as BetDice.

What are decentralized, crypto-native companies? These are “companies” or organizations that exist purely on the internet. Crypto-native companies however take it one step further. These organizations exist purely on the blockchain with business logic bound by smart contracts. …

This is the 4th time Vertcoin (VTC) is under a 51% attack in the past few months, causing its dwindling community to panic. For those unfamiliar with VTC, this coin was launched in the early days of the altcoin boom in 2014, in response to the production of ASICs. ASICs, short for application specific integrated circuits are basically special mining hardware created to mine cryptocurrency, especially Bitcoin. In the same way Litecoin changed its hashing algorithm to Scrypt (this ASIC-resistance has diminished over time), VTC did so to avoid ASIC miners. VTC was a serious development attempt in the early…

In May 2018, FundStrat proposed a new metric to estimate the fair value of Bitcoin known as Price / Miner’s Breakeven Cost or P/BE. Simply put, the theory is that the breakeven (BE) cost of Bitcoin acts as a price floor.

Source: Fundstrat; Various Twitter Accounts

I remain unconvinced of the predictive value of this metric.

In the short-run, price is likely temporarily tethered to the BE cost of mining. …

One of the most difficult questions to answer in the cryptocurrency market is how to value a token. While certain token economies are structured simpler than others and therefore easier to make back-of-the-napkin type of estimations, we still fall back to the demand/supply model for the most part. A recent debate have seen people using the MV=PQ framework, but terms such as V (velocity) is difficult to quantify. The V term is arguably even a more sensitive term in a crypto valuation than the WACC term in a traditional DCF. …

Throughout modern history, the case has always been that the world’s reserve currency is the currency of the country or empire with the strongest economy and the one backed by the largest military or navy power. What is less known about the history behind reserve currencies is the cyclical tendency for that mantle to be passed to a new successor every century or so.

Credits: JP Morgan

Due to advances in navigation and exploration, the Portugese and Spanish (who later merged to form the Iberian Union) dominated as their trade routes expanded as far as China. …

Fiat Minimalist

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