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why in the world did they link to that Vitalik tweet that implied crypto was in a massive bubble?

prolikewhoa 9y ago
Because it is?
ghayes 9y ago
I believe VB's statement was: are we building a successful platform or allowing speculation to drive the value. In my opinion, VB believes in Ethereum / crypto, but he wants more developers to improve the platform and build on it. This is in line with Coinbase's stated vision.
paulsutter 9y ago
Vitalik's tweet was a call to direct effort to more important projects (quoting Vitalik directly): - So total cryptocoin market cap just hit $0.5T today. But have we earned it? - How many unbanked people have we banked? - How much censorship-resistant commerce for the common people have we enabled? - How many dapps have we created that have substantial usage? Low added value per user for using a blockchain is fine, but then you have to make up for it in volume. - How much value is stored in smart contracts that actually do anything interesting - How many Venezuelans have actually been protected by us from hyperinflation? - How much actual usage of micropayment channels is there actually in reality? - The answer to all of these questions is definitely not zero, and in some cases it's quite significant. But not enough to say it's $0.5T levels of significant. Not enough.
- paulie_a 9y ago
  Which is odd because it is literally half that value... And had dropped dramatically from 750 billion.
- hyprCoin 9y ago
  A scalable solution to one of these problems will likely experience exponential growth (product market fit). The current market cap (and volatility) reflect this.
- isthatart 9y ago
  Market cap is misleading. Example, this week. The market cap of one first 100 coins, as seen at coinmarketcap, grew with $3M because of a trade of $2000. The reason is simple. Say 1 coin is valued yesterday at $1, there are 300M coins, so the market cap is $300M. The total coin trade today was such that one instance when somebody bought at $3/coin, for $2000, makes the coin price today to be $1.01 and $0.01 X 300M coins = $3M so called growth in market cap.

Because it is?

I believe VB's statement was: are we building a successful platform or allowing speculation to drive the value. In my opinion, VB believes in Ethereum / crypto, but he wants more developers to improve the platform and build on it. This is in line with Coinbase's stated vision.

paulsutter 9y ago

Vitalik's tweet was a call to direct effort to more important projects (quoting Vitalik directly): - So total cryptocoin market cap just hit $0.5T today. But have we earned it? - How many unbanked people have we banked? - How much censorship-resistant commerce for the common people have we enabled? - How many dapps have we created that have substantial usage? Low added value per user for using a blockchain is fine, but then you have to make up for it in volume. - How much value is stored in smart contracts that actually do anything interesting - How many Venezuelans have actually been protected by us from hyperinflation? - How much actual usage of micropayment channels is there actually in reality? - The answer to all of these questions is definitely not zero, and in some cases it's quite significant. But not enough to say it's $0.5T levels of significant. Not enough.

paulie_a 9y ago
Which is odd because it is literally half that value... And had dropped dramatically from 750 billion.
hyprCoin 9y ago
A scalable solution to one of these problems will likely experience exponential growth (product market fit). The current market cap (and volatility) reflect this.
isthatart 9y ago
Market cap is misleading. Example, this week. The market cap of one first 100 coins, as seen at coinmarketcap, grew with $3M because of a trade of $2000. The reason is simple. Say 1 coin is valued yesterday at $1, there are 300M coins, so the market cap is $300M. The total coin trade today was such that one instance when somebody bought at $3/coin, for $2000, makes the coin price today to be $1.01 and $0.01 X 300M coins = $3M so called growth in market cap.