Row 11920

Content Data

This page contains data entry 11920 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

Raw Record

{
  "text": "Hello fellow Ethereum lovers \n\nTo preface this post, I want to write about the qualities of a Store of Value. A good Store of Value is simply one that maintains it's value over a longer period of time. Thus, it doesn't depreciate and can be trusted in the long term. Traditional currencies are pretty poor as a Store of Value since inflation (as we've seen during covid) can take depreciate fairly quickly due to inflation. Things like commodities- precious metals have been considered historically as a good store of value. \n\nWhen we talk about Ethereum we oftentimes mention the different use cases of the Chain and it's L2s including DeFi, DePin, NFTs, tokenization of assets etc. and one of the qualities of Ethereum tends to get overlooked in these discussion and that's the ability to function as a **Store of Value.** \n\nSince Bitcoin is widely recognized as the Crypto to store value (which it might do well given the limited supply), many people seem to overlook that Ethereum has similar qualities. \n\nSince the change from Proof of Work to Proof of Stake, Ethereums inflation has been reduced significantly and as activity increases, there is a higher fee burn mechanism which makes the asset deflationary. (an desired economic property for a Store of Value) \n\nAs demand for Ethereum and it's L2s increases, the supply will slowly decrease making your part of the pie (if using as a store of value) grow over time. As of today, there is already a fairly large proportion of Ethereum holders who just secure the network through staking and thus, in a certain way, use it as a Store of Value already. \n\nSince the burn mechanism was introduced 1019 days ago **-0.73%** of the supply per year has been burned. (Based on ultrasound money data). If you then stake and earn around 3.5% (just a random estimate) you got the dream of every value investor. An equivalent to a dividend paying stocks that makes buybacks and doesn't dilute the shareholders. (And that on the equivalent of a growth stock) \n\nI also want to add, that I think that the psychological factor is an important one regarding a store of value. If people believe some asset is a store of value it helps tremendously on top of the underlying fundamentals of the asset. And with BTC more and more people regard it as a Store of Value while the notion isn't as widely spread with Ethereum outside of Crypto Circles. But if that changes and we get a bit more regulatory clarity on Ethereum as well, more and more people might recognize that use cases which could bring a good amount of demand from traditional finance. \n\nFinally, I'd add that this is just another perk from Ethereum and by far not the main use case but it adds to an already great basked of qualities. There is a plethora of relatively good DeFi chains at the moment but with terrible (to say it mildly) tokenomics. The combination that ETH provides is fairly unique in that regard. \n\nGreetings ",
  "label": "r/ethtrader",
  "dataType": "post",
  "communityName": "r/ethtrader",
  "datetime": "2024-05-20",
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  "url_encoded": "Z0FBQUFBQm5Lak9KS0VoaWwtR1EyVXVja0VacVJVYjZtcDRzRC1mQVN1Q3hfYURxMkdZUlZXRHV2dTZoeFA5VXVuTkFrSXlZVXhEY3ZVVWE5WHl5Um9pTU9NSFdWMmNyZUpFaTJXN3p1aFFwNUJLWl9DWEd4NHRwNDh0b0ZackFlaDFISnB4dWhJeVJSN2dfdnRMbGtxcjlpbHhCYnRYNGhBYkI0a25ralJ5OGExV3pidVhkZGJ0NnpmMkJlS2k4cHBrbDBXUkh3ajhVMXhlYlZDT2FoTmxNaXVFck5Pc0dWUT09"
}

Entry Information

• Entry ID: 11920
• Repository: Axioma AXP
• Dataset: arrmlet/reddit_dataset_36
• Total Entries: 100,000