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Yes. I think the flood of USD Stablecoin on Ethereum might actually reduce the currency premium for ETH in the short term. Especially USD offers higher interest rate than ETH. But in the long term it will increase economic activity on Ethereum. Because liquidity has network effect. Liquidity attracts more liquidity. USD Stablecoin on Ethereum will attract EURO/YEN Stablecoin come to Ethereum... Similar with TBill, TBond, Equity... As more economic activity happen on Ethereum, the cash flow and burn rate will increase, making ETH more attractive as store of value and productive asset. This is a little similar to Amazon passing value to customer to build the scale and we did not see the earning. Notes: Things will also change depend on the USD interest rate/US Debt Crisis.

I think one of the reason ETH is underperforming this cycle is because Ethereum Economy was dollarization. There are too much USD stablecoin on Ethereum now($120B). People use USD stablecoin for Store Of Value, currency, consumption... instead of ETH. So the money premium for ETH went down. There is also a lot of short pressure on ETH, over $9B currently. I think Short Squeeze might coming after staking ETH ETF is approved. Otherwise, we need new economic activities on Ethereum, something similar to ICO/DeFi Summar/NFT, to push the demand for ETH.

ETH has 3 properties: - Store Of Value as a currency/gold. - Consumption as a commodity(oil). - Productive Asset as a stock/bond(has Cash Flow). It's very difficult to evaluate the intrinsic value of ETH with all those properties. I think nobody really know. The most obvious market for ETH is similar to Bitcoin: Replacing Gold. Gold is $20K market cap and is vulnerable for disruption. This is the race between BTC and ETH. BTC has many advantages but it also has many long tail risk: 1. Security budget: reward for miners reduces every 4Y. Can price of Bitcoin keep double every 4Y? Even if price of Bitcoin 2x every 4Y, the cost of 51% attack compared to opportunities gain just widen overtime. Then people can short Bitcoin and make 51% attack. 2. Quantum Computing: Bitcoin will need to hardfork/upgrade to cope with Quantum risk. This is something that Bitcoin community is not used to and there is only 1 client development team. 3. Centralization Risk: mining has economic of scale so it leads to more centralization overtime. Especially after Quantum computing. On the other hand for Ethereum: 1. Security budget: provided by cash flow from economic activity on Ethereum. 2. Quantum Computing: very well researched in Ethereum Community. Ethereum Talent is used to tackle difficult technical problems and upgrading. 3. Centralization Risk: Proof Of Stake has less economic of scale. Staking 1 ETH got similar ROI as staking 1000 ETH.

1.ETH is the native currency in the Ethereum Economy. Ethereum is similar to an emerging economy. If you want to participate in many activities in China, you need RMB. If you want to participate in many activities in Ethereum, you need ETH. For example, to participate in ICO Boom in 2017 on Ethereum, you need ETH. to participate in DeFi Summer & NFT Boom in 2020/2021 on Ethereum, you need ETH. to participate in little restaking Boom in 2024 on Ethereum, you need ETH. So ETH is clearly a currency, similar to USD, China Yuan, Japan Yen... 2. Can you be more specific what made Ethereum not decentralized? Which big boys controlled ETH?

Source.

US Debt hold by China and Stablecoin

Some high yield on Stablecoin Farming. USDB is on Blast: https://blast.io/ Just curious, what is preventing you guys from trying? Mainet is Ethereum Layer 1. Base/Blast/Arrbitrum are Ethereum Layer 2 Solana is a Blockchain Layer 1 (similar to Ethereum Mainet).

Retails came in and bought Ripple on Coinbase.

Ripple is the best Crypto Tech in long term? Result from almost 200K voters. After many years in Crypto, I never really seen real metrics on adoption of Ripple, especially compared to Ethereum/Solana... Seems that most retails got mislead about Ripple?

From Coinbase Earning Call. Stablecoin is one the best PMF of Blockchain Tech. While banks close on Weekend, Stablecoin Network continue to operating 24/7/365 globally.

ETH had 20x since the start of 2020. The price of ETH at the start of 2020 is around 130. Now the price of ETH is 2700.

Agree that a lot of things in Crypto is still circular. But that's an opportunity for investor in my view. Once crypto goes mainstream, the market will be more efficient. More importantly, the growth and upside will be smaller. Current onchain user is about 30M-50M. It's similar to Internet before Facebook. Also, should noted that investing in Crypto even in Coin with fundamental feel more close to venture investing than traditional value investing in public company. There are chances for classic value play after FTX crash thought. Meme coin or poor fundamental coin is mostly gambling.

Your idea is similar to Robinhood CEO. Crypto Tech is more efficient and can reducing cost. Here is an example" "ROBINHOOD USES STABLECOINS TO FACILITATE TRANSACTIONS AND SETTLEMENTS BETWEEN CASH AND CRYPTO 24/7, PARTICULARLY ON WEEKENDS WHEN THE BANKS ARE USUALLY CLOSED". Video:

Sorry to hear that. Staking ETH during the time when ETH price went from around 5000 to 1000 is not fun. Plus gas/tx fee was high. On the other hand, if you staked ETH during the time when ETH price went from around 1000 to 4000 is quite good. Plus you get Airdrop from restaking protocols. Plus gas/tx fee is much cheaper now. If you do it on Layer 2, the tx fee is even sub cent. Actually, staking ETH and calculated PnL in USD is not much different than you staking USD(buy TBill) and calculated PnL in Gold. If you don't want to take the price risk, just try farming with Stablecoin. For example, right now you can get default 13% yield on usd stablecoin on Blast. https://blast.io/. You can juice it up to 80% if you are willing to take some price risk in Blast token. For the tax, I have no comment on that.