The acclaimed author and Austrian Economist Saifedean Ammous recently stated, “Ethereum is the mother asshole from which the shitcoins spring.”
Saifedean is the author of The Bitcoin Standard and The Fiat Standard and these recent and based comments were made in an interview on the Lex Fridman Podcast.
Full Interview: ?
Table of Contents
Ethereum and Proof of Stake Networks are Scams and Ponzi Schemes
So let’s be clear: Ethereum, along with every other proof-of-stake system, is a fraud, and a scam.
Yield farming is nothing more than a Ponzi that can only continue operating if new investors continue to put money into it so that the older investors may be paid back.
The POS staking is nothing more than another form of yield farming carried out by Cantillon central banks, with shitcoins.
The major difference between Bitcoin (POW) and these POS systems is that in POW you must spend money, energy, and labor, and there is a limit on the supply of Bitcoin.
Even after all Bitcoin are mined, mining will be highly profitable because the fees will be worth more allowing miners to cover expenses
In spite of the fact that miners will ultimately be forced to give up their block rewards due to Bitcoin’s finite supply, the fact that miners will have the option to make a living off of transaction fees according to basic monetary theory makes this a positive development.
The quantity of Bitcoin can never be increased after all 21 million have been mined, regardless of how much demand there is for them.
As a consequence of the disparity between the supply of and demand for money, there has been, and will continue to be, a slow and steady decline in the overall level of prices. This, in turn, has led to an equally slow and constant rise in the buying power of money.
As a result, the value of the money increases over time as Bitcoin miners receive transaction fees, regardless of how huge or how minute they may be.
Because of this value appreciation over time, fee-centric mining transforms from a financially unfeasible activity to a prudent investment with a long-term perspective.
Back to POS
All you have to do with Proof Of Stake is deposit some ”crypto” and expect that it generates wealth for you out of nowhere.
The only way POS will operate is if fresh investors deposit money; otherwise, it will fail like any centralized network.
Because of the way POS works, the wealthiest become richer and the poor get poorer.
Due to the fact that a few people hold the majority of the supply, these individuals have the ability to dictate whatever they like and make it happen.
It would be entirely illogical to use the democratic function in these kinds of systems.
(POS) systems do not have a limit on their supply simply because they need to pay their validators or else they will perish. Ponzis.
Is Vitalik ready to throw in the towel on etherium?
Vitalik Buterin the founder of Etherium, put out an interesting thread on Tuesday morning.
In short, this thread is simply him understanding that the mEth experiment is one designed by Rube Goldberg and that it has too many broken bits that don’t heal themselves with cat and shitcoin meme t-shirts.