Speed ​​reading | BTC's monetary policy is overvalued, Ethereum's monetary policy is underestimated

Editor's Note: The original title is "The True Handbook | Defi Gap: Bitcoin's monetary policy is overestimated"

Today's content includes:

1. The monetary policy of BTC is overvalued and the monetary policy of Ethereum is underestimated.

2, APompliano: User misuse does not mean that Bitcoin is censorable

3, consumer Internet 3.0 – privacy and digital awareness

• Interview with Li Lin | Year after returning to the fire coin
• Research shows that bitcoin bull market still needs to wait, institutional admission is still slow
• ChainNode Review: Bit Shield Razor Blade Hardware Wallet

4, Celo's AMA – Interview with Marek Olszewski

5, ETH Tokyo Drift: Concensys's Japanese blockchain tour

1. BTC’s monetary policy is overvalued and Ethereum’s monetary policy is underestimated

The author is the author of Bankless, who used to have more milk in Ethereum. In this article he compares the monetary policy of BTC and ETH. He argues that Bitcoin's monetary policy is overvalued and Ethereum's monetary policy is underestimated. Both have different trade-offs. And this article is his first article: Why Bitcoin's monetary policy is overrated. His next article, "Why is Ethereum's monetary policy undervalued," will be updated next week.

Monetary policy is a way for a country to set interest rates and money supply to increase GDP, manage employment and maintain a predictable exchange rate, and these will not lead to excessive inflation. Unlike gold, cryptocurrencies do have monetary policy requirements: maximizing network protection. Legal tender and cryptocurrency have different requirements: statutory policy directives: GDP, employment, trading – avoiding hyperinflation; cryptocurrency policy: protecting cybersecurity

Most security budgets, 95% to 99% of them come from block rewards rather than transaction fees. This is true for both networks. As the value of BTC and ETH increases, the overall reward income will also increase.

For every half of the reduction, network security does not use this powerful feature. Each halving will reduce the security budget subsidy, so that the security of Bitcoin is no longer dependent on the price of BTC, but more dependent on the need for bitcoin block space.

Bitcoin ultimately relies almost entirely on block space requirements, and by 2032, BTC-denominated block rewards will be only 6% of today's rewards. Yes, we can assume that BTC will appreciate before this. For example, if the price rises to $140,000 per BTC, the security budget for 2019 can be maintained. But is the 2019 level of security sufficient to meet trillions of dollars of network demand in 2032?

Others believe that Bitcoin’s transaction fee income will increase. I don't believe so much. It is not clear that block space requirements are the core strength of Bitcoin. Even today, Ethereum keeps pace with Bitcoin in transaction fee income. This is because Ethereum is the settlement network for many digital assets and currency agreements. For this wide-ranging use, I would not be surprised if Ethereum's transaction fee income exceeds Bitcoin in the next few years.

Full text link: https://bankless.substack.com/p/btcs-monetary-policy-is-overrated

2, APompliano: User misuse does not mean that Bitcoin is censorable

This is the view of Bitcoin's milk king Apompliano about the closure of a dark-net child sexual abuse website last week through Bitcoin tracking, and he reiterated that the "unique" value proposition that does not agree with Bitcoin is unreviewable.

Last week, it was reported that bitcoin transactions played a role in the collapse of the world's largest dark-skin child abuse website, including the arrest of more than 300 individuals in more than 38 countries. These arrests and the closure of the dark website were made possible because law enforcement tracked bitcoin payments between individual visitors to the website and the website operator.

The situation is complex, so these arguments are not right or wrong. But one argument I heard last week was really worrying, and I felt that I should respond to concerns about Bitcoin's resistance to censorship.

A flawed logical loop that is very popular now:

The only unique value proposition of Bitcoin is uncensorability

In order to be uncensorable, you must have full anonymity of the user.

Bitcoin is not anonymized because Bitcoin users in this situation have been identified and captured

If Bitcoin is not anonymous, it can be reviewed

If you can review Bitcoin, it will be worthless because the only value proposition is non-review

The unreviewable nature of Bitcoin is just one of many value propositions. It is important that governments, financial institutions or other organizations fail to review bitcoin transactions. This is one of the most important characteristics of an asset, but it is not the only one. Bitcoin can provide full anonymity when used correctly – emphasizing "when used correctly", which does not mean that bitcoin is not anonymous. This means that people who use Bitcoin do not properly protect their anonymity.

There are many reasons why Bitcoin is valuable. The ability to resist censorship from the most powerful organizations is one of the most important features. As the world begins to understand the importance of financial privacy, today's bitcoin is very likely to be underestimated. Many of you will ask – is it a good idea to use a completely anonymous digital currency? Bitcoin was established to fight tyranny, ignorance and incompetence. It was built for peaceful protest. Just because someone wants to use Bitcoin anonymously (or any currency) doesn't mean they are doing anything evil or breaking the law.

We should hope that the criminals are so stupid that they cannot learn how to use Bitcoin correctly, while providing ordinary people with user-friendly tools and infrastructure to protect their financial privacy.

Full text link https://offthechain.substack.com/p/user-error-doesnt-mean-bitcoin-is

3 Consumer Internet 3.0 – Privacy and Digital Awareness

Author Carl Fritjofsson is a partner at Creandum (VC).

The Internet revolution began 30 years ago, the first wave of consumer digital products and services. The main innovation of the World Wide Web is that it allows near-zero marginal cost to serve new users. Instead of charging consumers directly for access fees, the company sees digital advertising as the holy grail and the default monetization mechanism. This is Consumer Internet 1.0.

Consumer Internet 1.0 teaches us to get most online products "free". Consumer Internet 2.0 began about 15 years ago, and more information about our real life began to appear on the web, attracting more data and generating more opportunities to advertise. As a result, companies are over-investing in extracting more data from users and reselling them to anyone who wants to access it. So the author puts forward consumer Internet 3.0, privacy and digital awareness.

In fact, to a certain extent, I think it is what we often say about Web3.0. The authors propose several Web3.0 opportunities for entrepreneurship (1. Consumer Data Management; 2. Privacy as a Service; 3. Digital Access), and some examples of start-ups that have emerged in these opportunities. I think it is very good. And let us jump out of a limitation, Web3.0 entrepreneurial opportunities are not limited to the blockchain (because we have seen too many blockchain Web3.0 articles).

• Consumer data management, the authors introduced examples are Jumbo Privacy, DeleteMe, Privacy Co and Solid.
• Privacy as a service, examples of authors introduced are password managers (such as 1Password), VPN (such as Guardian Firewall), ad blockers (such as Adblock Plus), private browsers (such as Brave Browser), and private search engines (such as DuckDuckGo). , anonymous payments (such as Abine Blur, (partly Bitcoin), and anonymous/virtual phone numbers (such as Google Voice)
• Digital access, examples introduced by the author are Qustodio, FamilyTime and Net Nanny

Full text link https://blog.creandum.com/consumer-internet-3-0-privacy-and-digital-consciousness-dcd5620719c1

4. Celo's AMA – Interview with Marek Olszewski

This is the famous American node service provider Chorus One to Celo's AMA. Celo has been in China for a while before, and it is said that the valuation is very high, but I think most of the small partners don't know Celo. This AMA may help you understand what Celo is doing faster.

Celo is building a mobile-first smart contract platform with a built-in stable currency system to handle financial compatibility in emerging economies.

Celo is a fork of the Ethereum code base and therefore has full EVM compatibility. You can deploy all your favorite Ethereum smart contracts without any changes. There is also a mobile-sdk that makes it easy to build native mobile dapps that interface with smart contracts. Celo believes that dapps should be a mobile-first native application that abstracts the blockchain and strives to build an easy-to-implement platform and SDK. Celo users can sign up for a phone number, and then people can send tokens directly to him as long as they have a phone number.

Whether Celo implemented the EIP-1559 using a different TX cost/Gas model than Ethereum, the protocol sets the minimum Gas price based on congestion to limit the fluctuation of the Gas price. The basic cost in Celo is used for the verifier, and the small fee is for the entire node serving the light client. In the scheme proposed by Ethereum, the “basic fee” was burned, and there was another part, and the “tip” was paid directly to the verifier.

In addition, Marek also mentioned the design of Celo's chain management, Staking and stable currency system. Interested in Celo can be seen.

Full text link https://blog.chorus.one/celo-qa-with-marek-olzewski/

5. ETH East: Tokyo Drift in Japan Block Chain Week

This is a summary of Consensys' Japanese blockchain week. Some of his main notes were taken as follows:

Kazuaki Ishiguro, the head of the Ethereum Business Alliance in Japan, points to the idea that companies and consumers want the same thing – a simpler financial trading experience.

Ejaaz Amahadeen, head of global token design at ConsenSys Codefi, and regional director Nicole Nguyen mentioned that with more than 60 DeFi applications running on newer items such as dydx and compound offering loans on a decentralized platform, . On the surface, this number seems small compared to the 2017 ICO, but in fact DeFi creates value that far exceeds other products and applications. To gain wider adoption, DeFi can't exclude permanent establishments. Traditional institutions put brand safety and risk management first, they are learning, and traditional finance and Defi push interaction will become a shared responsibility.

A recent IDC report shows that Japan will become the fastest growing blockchain market in the world in the next four years. Especially the enterprise blockchain demand.

Full text link https://media.consensys.net/eth-east-tokyo-drifting-through-japan-blockchain-week-f71159c3d4e8

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