Should Ethereum maximize profits? – Blockworks
The post Should Ethereum maximize profits? – Blockworks appeared on BitcoinEthereumNews.com. This is a segment from The Breakdown newsletter. To read more editions, subscribe “If you want to know the real secret of Walt’s success, it’s that he never tried to make money.” — Ward Kimball, Disney animator Andrew Keys is an Ethereum OG whose credentials include attending the first-ever Ethereum meetup in 2014 and making ETH worth more than a dollar. “The first time Ethereum crossed $1 was because I put a permissioned version of the Java client of Ethereum on top of Azure,” he said on the Empire podcast, “and we put out a 100-word press release in the Wall Street Journal with Paul Vigna creating a concept of blockchain-as-a-service.” Reading Vigna’s write-up from 2015 is a reminder of how little has changed in the 10 years since. The narrative justifying $1 ETH was that Microsoft’s Azure would use Ethereum to “improve operations from accounting to logistics to cross-border payments and settlement.” It never really happened, but we’re now racing toward $5,000 ETH largely on the same idea that Ethereum will be the corporate blockchain of choice. This remains speculative. Ethereum generated $1.4 million of REV yesterday — more than it did in 2015, of course, but not a lot relative to its $4,400 token price and $531 billion market capitalization. Keys, however, thinks that valuation is low because Ethereum is underpricing its services. “At the expense of near-term profitability, the Ethereum Foundation decided to make L1 blob space dirt cheap,” he explained. “I think in time, the Ethereum community is going to say, ‘Well, this is too cheap,’ and you can raise that pricing.” Consider this the Uber theory of Ethereum’s value: “Once Uber became ubiquitous, they tripled prices,” Keys notes. He expects Ethereum to do the same: “As blockspace becomes more competitive, you can raise prices.” Uber is…
The post Should Ethereum maximize profits? – Blockworks appeared on BitcoinEthereumNews.com.
This is a segment from The Breakdown newsletter. To read more editions, subscribe “If you want to know the real secret of Walt’s success, it’s that he never tried to make money.” — Ward Kimball, Disney animator Andrew Keys is an Ethereum OG whose credentials include attending the first-ever Ethereum meetup in 2014 and making ETH worth more than a dollar. “The first time Ethereum crossed $1 was because I put a permissioned version of the Java client of Ethereum on top of Azure,” he said on the Empire podcast, “and we put out a 100-word press release in the Wall Street Journal with Paul Vigna creating a concept of blockchain-as-a-service.” Reading Vigna’s write-up from 2015 is a reminder of how little has changed in the 10 years since. The narrative justifying $1 ETH was that Microsoft’s Azure would use Ethereum to “improve operations from accounting to logistics to cross-border payments and settlement.” It never really happened, but we’re now racing toward $5,000 ETH largely on the same idea that Ethereum will be the corporate blockchain of choice. This remains speculative. Ethereum generated $1.4 million of REV yesterday — more than it did in 2015, of course, but not a lot relative to its $4,400 token price and $531 billion market capitalization. Keys, however, thinks that valuation is low because Ethereum is underpricing its services. “At the expense of near-term profitability, the Ethereum Foundation decided to make L1 blob space dirt cheap,” he explained. “I think in time, the Ethereum community is going to say, ‘Well, this is too cheap,’ and you can raise that pricing.” Consider this the Uber theory of Ethereum’s value: “Once Uber became ubiquitous, they tripled prices,” Keys notes. He expects Ethereum to do the same: “As blockspace becomes more competitive, you can raise prices.” Uber is…
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