Hi There!
It is sad when your customers and you personally lose money. However I am not surprised by this week’s market correction. (I mentioned in previous posts that I thought it would happen in March). Nor am I that sad about it. There is no real loss for Launchnodes’ clients as ETH is locked in until phase 2.0, but the opportunity for people to buy ETH at a lower price, reducing the hurdle rate for staking can only be a good thing.
I am loath to talk about ETH price, but I suppose on a week like this it would be negligent not to. I am also predisposed to ram this brief newsletter full of publicly available data, but before we talk about price, let’s talk about this table:
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The transaction volumes are more interesting as they demonstrate a rapacious increase in real life use cases (most of them DeFi based) that will not slow down irrespective of the price of ETH.
A former Thoughtworks colleague asked me, “What is the use case for blockchains?” This is like asking “What is the use case for the Internet?” I did not say that, instead I asked him to just think of it as a technical upgrade for the derivatives market, and to understand what that constitutes as an addressable market/problem to solve. This cute picture that summarises the global economy indicates it is a $1 Quadrillion USD problem. It is also worth remembering that Ethereum completes the upgrade to PoS potentially at the end of 2021, reducing the network’s energy consumption by 99%.
These 2 points are just a couple of the fundamentals that Launchnodes customers should take comfort from. My analogy with the Internet and Ethereum is an infinite benefaction, so let me talk about price by asking a final question. In 1997, if the Internet could have given us applications that paid us for using them, and given end users the ability to earn money from the increasing network traffic, how would “markets” have responded to the companies peddling this new magic? Calm caution, or batshit hubris?
The price of progress is trouble and Ethereum and those of you staking are making lots and lots of progress.
Happy Staking!
Jaydeep Korde
CEO, Launchnodes
