3 ms·
This can be true if those applications carry some intrinsic value. However whenever I go down this thought experiment, I tend to find that the applications the
by adam_arthur 4y ago
This can be true if those applications carry some intrinsic value.
However whenever I go down this thought experiment, I tend to find that the applications themselves also don't carry intrinsic value e.g. some tie to the real world outside crypto.
Are there exceptions?
- DennisP 4y agoEven if the applications are just weird forms of entertainment, that's still demand that people are paying real-world money for, since they have to spend their real money to buy the ETH. Non-blockchain gaming is a fairly big industry and all the money people spend on in-game purchases doesn't have any more connection to the "real world," but is still valid for financial valuations of the gaming companies. There are people (especially at EY) working on using Ethereum as infrastructure for things like B2B transactions, but that's still in early stages. And here's a recent piece by Vitalik on non-financial applications of blockchains: https://vitalik.ca/general/2022/06/12/nonfin.html https://vitalik.ca/general/2022/06/12/nonfin.html
- JustLurking2022 4y agoYes, plenty of games make money off in-game transactions, and generally they only remain profitable for a few years while they have a large user base, then fade into irrelevance.
- DennisP 4y agoBut gaming companies can do well for a long time.