diff --git a/claims/valuation-model.md b/claims/valuation-model.md index 97ab825..f494bb4 100644 --- a/claims/valuation-model.md +++ b/claims/valuation-model.md @@ -1,5 +1,5 @@ # Crypto assets do not have a verifiable valuation model -Crypto tokens have no reliable [valuation method](../concepts/valuation-model.md). It is not possible to develop a theoretical [value](../concepts/value.md) for a crypto token because there is no demand curve generated by a [use case](../concepts/use-value.md) or any [income or cashflows](../concepts/income-cashflows.md) associated with the [security](../concepts/security.md). Crypto tokens have a strictly zero [fundamental value](../concepts/fundamental-value.md) and a [present-value](../concepts/present-value.md) of zero. +Crypto tokens have no reliable [valuation method](../concepts/valuation-model.md). It is not possible to develop a theoretical [value](../concepts/value.md) for a crypto token because there is no demand curve generated by a [use case](../concepts/use-value.md) or any [income or cashflows](../concepts/income-cashflows.md) associated with the [security](../concepts/security.md). Crypto tokens have a strictly zero [fundamental value](../concepts/fundamental-value.md) and a [present value](../concepts/present-value.md) of zero because they have zero income. Instead the price of a crypto asset swings about wildly depending on the whims of fluctuating demand, random sentiment and market mania of the larger crypto [bubble](../concepts/bubble.md). Crypto assets are a manifestation of the [greater fool theory](../concepts/greater-fool-theory.md) and the price of a crypto asset is defined simply by what people believe the next "fool" will pay for it. diff --git a/claims/what-type-of-asset.md b/claims/what-type-of-asset.md index f6e361b..689f2d3 100644 --- a/claims/what-type-of-asset.md +++ b/claims/what-type-of-asset.md @@ -5,7 +5,7 @@ See the [assets](../concepts/assets.md) comparison chart for an overview of how Crypto assets are [not currency](is-bitcoin-currency.md) because they cannot fulfil the definition of [money](../concepts/money.md). -Crypto assets are not [commodities](../concepts/commodity.md) because they have no intrinsic value needed to fulfil any productive economic activity or human need. A hypothetical definition of their [use value](../concepts/use-value.md) depends on a circular logic. +Crypto assets are not [commodities](../concepts/commodity.md) because they have no intrinsic value needed to fulfil any productive economic activity or human need. Any hypothetical definition of their [use value](../concepts/use-value.md) depends on circular logic and is thus absurd. Crypto assets may also be a form of [art](../concepts/art.md) under the fuzzy definition of "artistic intent". diff --git a/concepts/endowment-effect.md b/concepts/endowment-effect.md index 68de2d6..2f37896 100644 --- a/concepts/endowment-effect.md +++ b/concepts/endowment-effect.md @@ -1 +1,5 @@ -# Endowment Effect \ No newline at end of file +# Endowment Effect +The endowment effect is a result in behavioral economical that people are more likely to retain an object they own than acquire that same object when they do not own it. It is a cognitive distortion in which the perceived [value](value.md) of an [asset](assets.md) is biased by the act of owning it and ties into the psychological phenomenon of loss aversion. Instead of objectively valuing the [asset](asset.md), independent of their holdings, the individual will overvalue assets they currently hold. + +## References +1. Plott, Charles R., and Kathryn Zeiler. "Exchange asymmetries incorrectly interpreted as evidence of endowment effect theory and prospect theory?." American Economic Review 97, no. 4 (2007): 1449-1466. \ No newline at end of file diff --git a/guide/index.md b/guide/index.md index e64f5bd..07e7731 100644 --- a/guide/index.md +++ b/guide/index.md @@ -29,6 +29,7 @@ Understand the terminology used to describe crypto and web3. * [Zero-sum game](../concepts/zero-sum-game.md) * [Memecoins](../concepts/memecoin.md) * [Assets](/concepts/assets.md) +* [Intrinsic value](../concepts/use-value.md) * [Store of value](../concepts/store-of-value.md) * [Speculative asset](/concepts/speculation.md) * [Market manipulation](../concepts/market-manipulation.md) @@ -172,6 +173,7 @@ Understand the deeper theoretical concepts behind the technical and economic cla * [Certificate deposit](../concepts/cd.md) * [Dollar](../concepts/dollar.md) * [Commercial paper](../concepts/commercial-paper.md) + * [Credit Default Swap](../concepts/cds.md) **Technology** @@ -210,13 +212,14 @@ Understand the deeper theoretical concepts behind the technical and economic cla **Sociology** * [Value](../concepts/value.md) +* [Use value](../concepts/use-value.md) +* [Sign value](../concepts/sign-value.md) * [Bubbles](../concepts/bubble.md) * ["Madness of crowds"](../concepts/madness-crowds.md) * [Decentralization](../concepts/decentralization.md) * [Recentralization](../concepts/recentralization.md) * [High control groups](../concepts/high-control-group.md) * [Thought terminating cliche](../concepts/thought-terminating-cliches.md) -* [Sign value](../concepts/sign-value.md) * [Bandwagon bias](../concepts/bandwagon-bias.md) * [Tinkerbell effect](../concepts/tinkerbell-effect.md) * [Endowment effect](../concepts/endowment-effect.md) diff --git a/meta/claims-todo.md b/meta/claims-todo.md new file mode 100644 index 0000000..8fd1a94 --- /dev/null +++ b/meta/claims-todo.md @@ -0,0 +1,30 @@ +# Claims TODO + +- [x] [authoritarianism](../claims/authoritarianism.md) +- [ ] [web3-decentralized](../claims/web3-decentralized.md) +- [x] [environmental-footprint](../claims/environmental-footprint.md) +- [x] [is-bubble](../claims/is-bubble.md) +- [ ] [narrative-economics](../concepts/narrative-economics.md) +- [x] [digital-gold](../claims/digital-gold.md) +- [ ] [new-internet](../claims/new-internet.md) +- [ ] [risk-to-state](../claims/risk-to-state.md) +- [ ] [systemic-risk](../concepts/systemic-risk.md) +- [ ] [threaten-dollar](../claims/threaten-dollar.md) +- [x] [valuation-model](../concepts/valuation-model.md) +- [x] [what-type-of-asset](../claims/what-type-of-asset.md) +- [ ] [hedge-debasement](../claims/hedge-debasement.md) +- [ ] [is-better-payments](../claims/is-better-payments.md) +- [ ] [is-collapse](../claims/is-collapse.md) +- [ ] [is-disrupt-hegemony](../claims/is-disrupt-hegemony.md) +- [ ] [is-hyperfinancialization](../claims/is-hyperfinancialization.md) +- [ ] [is-legal](../claims/is-legal.md) +- [ ] [is-new-financial-system](../claims/is-new-financial-system.md) +- [ ] [is-opportunity-cost](../claims/is-opportunity-cost.md) +- [ ] [is-private-money](../claims/is-private-money.md) +- [ ] [is-public-goods](../claims/is-public-goods.md) +- [ ] [is-raise-company](../claims/is-raise-company.md) +- [ ] [is-raise-nonprofit](../claims/is-raise-nonprofit.md) +- [ ] [new-internet](../claims/new-internet.md) +- [ ] [transnational-payment](../claims/transnational-payment.md) +- [ ] [web3-decentralized](../claims/web3-decentralized.md) +- [ ] [web3-green](../claims/web3-green.md) diff --git a/meta/concepts-todo.md b/meta/concepts-todo.md index 80b6c44..c12a79c 100644 --- a/meta/concepts-todo.md +++ b/meta/concepts-todo.md @@ -63,7 +63,7 @@ Second Pass - [ ] [mlm](../concepts/mlm.md) - [ ] [rtgs](../concepts/rtgs.md) - [ ] [staking](../concepts/staking.md) -- [ ] [systemic-risk](../concepts/systemic-risk.md) +- [x] [systemic-risk](../concepts/systemic-risk.md) - [ ] [yield-farming](../concepts/yield-farming.md) - [x] [stablecoin](../concepts/stablecoin.md) - [ ] [capital-formation](../concepts/capital-formation.md) @@ -76,21 +76,6 @@ Second Pass - [ ] [endowment-effect](../concepts/endowment-effect.md) - [x] [bandwagon-bias](../concepts/bandwagon-bias.md) -Claims - -- [ ] [authoritarianism](../claims/authoritarianism.md) -- [ ] [web3-decentralized](../claims/web3-decentralized.md) -- [x] [environmental-footprint](../claims/environmental-footprint.md) -- [x] [is-bubble](../claims/is-bubble.md) -- [ ] [narrative-economics](../concepts/narrative-economics.md) -- [x] [digital-gold](../claims/digital-gold.md) -- [ ] [new-internet](../claims/new-internet.md) -- [ ] [risk-to-state](../claims/risk-to-state.md) -- [ ] [systemic-risk](../concepts/systemic-risk.md) -- [ ] [threaten-dollar](../claims/threaten-dollar.md) -- [x] [valuation-model](../concepts/valuation-model.md) -- [x] [what-type-of-asset](../claims/what-type-of-asset.md) - Ideologies - [ ] [accelerationism](../concepts/ideologies/accelerationism.md) diff --git a/site/pages/contribute.md b/site/pages/contribute.md index 94eb1aa..b731f0b 100644 --- a/site/pages/contribute.md +++ b/site/pages/contribute.md @@ -6,6 +6,7 @@ This is an open collaborative project. We already have a variety of partners and * Contribute to the [library][], for example by adding articles, papers and research on web3 and background topics. * Write up key concepts and ideas. You can check out our [existing guide][guide] to see which ones could be extended or improved. * See our [concepts-todo](../../meta/concepts-todo.md) task list for open topics. + * See our [claims-todo](../../meta/claims-todo.md) task list for open topics. * Proof edit articles and transcribe dialogs. Please [get in touch][contact] to find out more. ### If you like coding and designing