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Cryptoeconomics

Links to the best articles, videos and podcasts about Cryptoeconomics.

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Bitcoin Data Science (Pt. 3): Dust & Thermodynamics

"tl;dr: We examine the history and future of dust: containers (UTXOs) of bitcoin that cost more to spend in fees than they hold."

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A Flood of Questionable Cryptocurrency Offerings

"As cryptocurrency startups raised billions of dollars over the last two years, hundreds used deceptive and even fraudulent tactics to lure in investors hunting for quick riches in this new, volatile market. The Journal reviewed nearly 3,300 crypto offerings and found about 16% of them, or 513, showed signs of plagiarism, identity theft and promises of improbable returns."

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Uncertainty Wednesday: Investing, Perception Risk and Crypto

"In investing there is uncertainty about returns. Some investments do well, others do poorly. But that is not the only risk that investors are concerned about when they are investing professionally on behalf of others. "

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On bonding curves and charitable giving

"Charitable giving can have a huge impact on causes and organisations we support. It is estimated that in 2017, $410B was given to charitable causes. However, how much of this comes from large philanthropy efforts (aka Bill & Melinda Gates foundation) vs the collective effort of individual giving?"

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Token distribution in perspective: Livepeer’s merkle mine not as successful as portrayed

"Token generation & distribution has always been a top concern for anyone seeking to establish truly decentralized networks. We’ve seen many methods attempted, but it remains quite challenging to distribute tokens fairly to real users (not speculators) while avoiding concentration of wealth."

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An Honest Account of Fiat Money

"Discussions about Bitcoin often start from the presumption that fiat money is terrible and against the will of the people. We think a discussion about money and Bitcoin should start by acknowledging both — the good, and the bad — of the fiat system."

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Blockchains are not companies

"This post mainly addresses blockchain governance. It was written mainly with blockchains in mind rather than blockchain based protocols. However, points made can be applied to both."

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Cryptocurrencies are money, not equity

"Developer incentivization and the power of holders"

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Cryptonetworks are not Companies

"What the crypto market vaguely understood, though could not fully articulate, is that the prices being paid were for emerging economies. Emerging economies using a protocol in place of the government, specializing in a single (digital) service, and capable of global scale from inception. The good ones, at least."

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Dapps are just censorship-resistant cloud-computing

"You could say that misunderstandings about the nature of dapps have resulted in the misappropriation of about $13 billion dollars between 2017 and 2018. While some of these ICOs may one day lead to something which merits the initial capital investment, it’s hard to argue that this will be the case for many (if any at all). The technology has been improperly leveraged and overcapitalized (unsuccessfully) in an effort to overcome fundamental limitations. Here I explain how the upsides and downsides of dapps compared to contemporary web services to show how to successfully leverage dapps."

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Winds of Change: The Case for New Digital Currency

By Christine Lagarde, IMF Managing Director

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The Purpose of Layered Protocols

"The internet is the best example of a layered protocol architecture, and this design was a key factor in the internet’s growth and usefulness. Different pieces of functionality are split into separate protocols that build on one another, rather than being bundled together in one monolithic system."

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An Efficient Algorithm to Exploit Arbitrage Opportunities in Crypto Markets

"The crypto market is still inefficient. Cryptoassets have different rates on different exchanges. The big question is how we can profit from that inefficiency. One approach is making transactions between exchanges, but if we buy a cryptoasset on one exchange, by the time we can sell it on another, the price difference may no longer exist."

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KPMG report: ‘cryptoassets are now impossible to ignore’ but there are still challenges facing institutionalization

"In the 42-page report, KPMG identifies the key challenges to the adoption of crypto in the global financial services ecosystem and introduces “KPMG’s Cryptoasset Framework” to help address them. The report was created with contribution from Coinbase plus insights and guidance from Fundstrat Global Advisors and Morgan Creek Digital."

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The Next Step in Cryptoasset Valuation

"Cryptocurrency valuation is the key conundrum for traditional investors who have only recently begun paying attention to the new asset class. However, the valuation methods lag, as usual. Equity markets had existed for four centuries and the New York Stock Exchange operated for 130 years before Discounted Cash Flow (DCF) methodology became the mainstream in equity valuation. Unsurprisingly, with 10 years of history no one really knows how to value cryptoassets yet. Despite attempts by a few research enthusiasts, a mainstream valuation method still needs to be developed."

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Growth is not price

"But real growth is not necessarily price growth. Especially not in crypto."

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Generalized Mining: the LPs perspective

"Generalized Mining (or ‘mining 2.0’) has emerged as a catchall term that describes the practice of actively participating in one way or another networks in order to generate returns. Different people have been defining it differently, we’re going to take a very broad view on this and then zoom in."

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Why 90% of Crypto Funds will fail

"There has been a lot of interesting analysis as to why hedge funds fail (approx 1000 closed in 2017) and fail to outperform, causing them to shut down. Howard Gold concluded in a column for MarketWatch that it’s mostly a problem of supply and demand."

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