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@ p2p fiat
2024-04-19 08:04:56The (only?) global p2p digital value transfer protocol requires an underlying token that represents the value that is being transferred.
In a previous consideration, it was argued that the token underlying the global p2p digital value transfer protocol, has to be an attractive asset for the protocol to function. If the token is not attractive, there is no reassurance that the receiver will be able to convert the token into another valuable asset, which would make the protocol defunct.
The token underlying the p2p value transfer protocol has so far more than doubled its USD value every four years. This implies more than 19% USD IRR. This makes it an extremely attractive asset. Moreover, due to the halving cycle, the value increases are not uniform over time - as a result, the token has increased by a factor 10x in less than a year in some periods.
This attracts people with different objectives than digitally transferring value in a p2p way. It also creates envy. It gives the token underlying the protocol the perception of being a get rich quick scheme.
That is a design flaw.
The p2p digital value transfer protocol would be much less frowned upon, if it would increase in USD value at a more modest pace, for example by about 5-10% per year - that would still be good enough to make token underlying the protocol sufficiently valuable to act as the value travelling the protocol - but would avoid attracting the lambo kids.
Wouldn’t the silence of the lambos be much better for protocol adoption?