brypto

Degen

my “problem” with doing work and being paid with crypto is the irresistible drive to go and gamble it on different coins as soon as it enters my wallet

no matter the market conditions i feel my money is more valuable on the rollercoaster than on something that doesn’t move

Why USDC is fundamentally different from USD

Though it's a facsimile, the velocity of USDC is higher because the target demo has a greater risk appetite and willingness to spend it onchain

Once the dollar gets on-ramped to brypto rails, it moves a lot more freely 💸

And continue to decrease in value. The greater the velocity of money, the less valuable it is

(this is also a +1 to your slow growth thesis)

building /cabin, advising /clanker and /farcon | grin.io

Is this true individually?

I don’t see any reason inherently that a higher velocity of money on average (say, by improving the payment rails via crypto) must manifest on an individual scale

And separately, is value inherently negatively correlated with velocity? 

At an extreme, 0 velocity is worthless. Infinite velocity still can have value. I think maybe there’s a 3rd factor that’s part of a more complex relationship

Identity and math

Co-founder at @icebreaker

icbk.me/web3pm.fc

I think that phenomenon (keeping what you value and trading what you don’t) exists independent of the velocity of the asset

Eg if I get a bunch of somewhat illiquid tokens I don’t believe in but the market values them at $100, I will sell them even with 10% slippage

Vs I’m fine holding onto USDC even if I can sell that for ETH with 0 slippage

It ultimately comes down to the difference in perceived value vs market value and I think high velocity assets *often* have high correlation with large differences in perceived vs market value in crypto

However I would consider monetary units like USDC as distinct since their perceived and market value are generally equal. The velocity we see is just the result of them being used as money.

I think you’re right — you can’t really reduce it down to one variable 

That said, people tend to keep what they value and trade away what they don’t