web3/concepts/ethereum.md

1.5 KiB

Ethereum

Ethereum is a cryptoasset that extends the bitcoin model to allow the execution of smart contracts.

Properties

Ethereum is not a currency.

Ethereum is a speculative investment.

Ethereum is deflationary.

Ethereum has no fundamental value.

Ethereum has no use-value.

Ethereum has no income-cashflows.

Ethereum has a present-value of zero.

Ethereum has a terminal-value of zero.

Ethereum is a greater-fool-theory asset.

Ethereum is a form of gambling.

Ethereum is a non-productive investment.

Ethereum has a negative expected-return.

Ethereum is a security.

Ethereum is a bubble.

Ethereum investing is a negative-sum game.

Ethereum has a narrative economics based on technosolutionism, libertarianism, regulatory-arbitrage and aspirations of [private-money](private money.md).

Ethereum shares a payout structure similar to a Ponzi scheme.

Ethereum is based on an environmentally destructive consensus algorithm known as Proof of Work mining.