Let that sink in because this is foundational to Warren Buffett’s renowned value investing.
And on that note, in my mind, there’s no asset / company that gives a better return on capital than ETH.
Post-ETH2 merge and post-EIP 1559, Ether will become the native asset of a Proof-of-Stake consensus mechanism with a deflationary supply model.
ELI5, that means holders of ETH will be directly compensated for the fees (i.e., the revenue) that the Ethereum platform generated.
And due to the deflationary component of EIP-1559, the greater the usage of the platform, the more valuable the underlying asset of the platform.
Ethereum 2.0 researcher Justin Drake projected that, at least initially, ETH stakers will receive up to 25% APR.
Essentially a 25% return on capital, since digital assets have simpler financial structures than businesses.
If Charlie Munger thinks that 18% ROC is a “great” company, wait until he hears about ETH…
And it’s not just ETH.
DeFi blue chip protocols like Aave, Uniswap, and Yearn generate insane return on capital for their asset holders. These are real companies generating revenue and essentially redistributing it back to users — building on the ethos of Web3 with democratized access to money.
Yearn for example currently trades at a P/E ratio of 12… an order of magnitude smaller than a 3-year old, 100%+ CAGR growing, profitable tech startup should be valued at.
Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://medium.com/coinmonks/now-is-time-to-buy-more-eth-2a059c1b0532?source=rss——-8—————–cryptocurrency
