Jose Maria Macedo
Sep 4, 2018 · 1 min read

Awesome blog! Probably the piece I’ve read since getting into crypto that’s most made me rethink both the space and my investment thesis. Very interesting to get a more rigorous and detailed analysis of how value flows through the functionality stack:

Just one question: While I follow you when you say that value flow as a result of turnover is distinct from value flow as a result of utilisation, I don’t see how “ Utilization value and turnover value are largely independent and uncorrelated”

It seems to me that, at the very least, value flow as a result of turnover will be correlated to value flow as a result of utilisation. Using your Augur example, creating a prediction market on Augur reportedly uses 3M gas and creating and filling orders on existing markets both cost 500k gas.

Given this, I don’t see how an increase in value flow as a result of turnover to Augur (which also necessarily implies increased prediction market creation and created/filled orders) could occur without also causing an increase in value flow as a result of utilisation to Ethereum (more gas fees from increased usage). I’m sure I’m missing something and would really appreciate your thoughts on this!

    Jose Maria Macedo

    Written by

    Head of Advisory @Amazix. Martial artist, investor and blockchain analyst. Former poker pro, Cofounder @KitchPack (now acquired), Kaizen Academy and CFPalace.