Andrew Keys, Managing Partner at DARMA Capital, has been making predictions about the industry for the next year every year since 2016 and has become known as a ‘prognosticator’ due to the high accuracy of his predictions.
During the Consensus Conference 2021, Andrew Keys gave a short interview about Ether and DeFi.
- How do you understand the second all-virtual consensus? Is this a format you would like to continue to see once the world returns to normal? Any thoughts on virtual worlds replacing real life?
Andrew: Call me old-fashioned, but I kinda miss being able to connect directly between people and look forward to participating in person next year.
Regarding the all-virtual consensus, it means people can get access to the subject matter expertise of the consensus from anywhere in the world, which is great.
- Many people say that ETH is “ultra-sound money”. Do you agree with this statement? Or is it just wishful thinking?
Andrew: I totally agree with this statement. There are currently unprecedented assets on Ether, and its value lies in its three core properties:
Capital asset: The owner of ETH owns a portion of the global settlement layer’s fees.
Expendable asset: ETH is a fuel, a digital commodity. A certain amount of ETH is “burned” at each step of the Ether computation.
Storage of valuable assets: ETH can be freely traded or used as collateral in the digital economy.
Two key catalysts for increasing the value of Ether include.
First, EIP 1559, in which ETH is burned with each computation and storage transaction.
The second is the transition to PoS, which helps reduce the “selling pressure” associated with proof-of-work mining costs (such as power, hardware and real estate). In the face of these pressures, most miners have to sell 75% of their mines to cover their monthly costs.
- There is a growing belief that traditional financiers know more about ethereum than bitcoin. Is this a repeat of the “blockchain, not bitcoin” debate?
Andrew: Let me give you a simple example of the usefulness of bitcoin. Bitcoin is digital gold, with a $10 trillion market value (TAM).
With Bitcoin, Ming can send peer-to-peer value to Bao Xiaohong, but Bitcoin is scarce, and that’s been proven.
The usefulness of this is great, Bitcoin is the source of the blockchain, but we can do much more with the next generation blockchain database.
Ether is the foundation of the digital economy with a market cap of $270 trillion. Ether can digitize all assets (commodities, fiat currencies, stocks, derivatives, insurance policies and prescriptions) as well as financial instruments (loans, derivatives and exchanges) and legal agreements (employment, syndication, purchase orders and investments).
- What are your investment themes?
Andrew: We are witnessing the birth of the digital economy.
Ether is the only blockchain in the world that can be the basis of the digital economy, and the assets on Ether are unprecedented.
To increase usage, we have invested in Ether and the pushers around Ether (such as the Layer2 scaling solution).
- you call Coinbase the AOL of Web 3.0. what’s next?
Andrew: Ether’s market cap will surpass Bitcoin’s by 2022.
- decentralized exchanges are growing rapidly, but there is concern that they are nothing more than a way to financialize token products. when will DEXs support actual capital deployment and impact real-world finance?
Andrew: DeFi has exceeded $100 billion in total value lock-in and Ether settled $1.5 trillion in transactions in Q1 2021 …… Actual capital deployment is now underway.
Last month, the European Investment Bank, Goldman Sachs and Société Générale all issued bonds in ETH. These entities need to pay their operating expenses in ETH.
- You are known for your annual Ether predictions. Have any of the predictions been right so far?
Andrew: I’ll defer to the fact checkers, but in my opinion, all of these predictions have come true to some degree.
I’m particularly proud that 2021 is the year of the breakthrough for Layer 2 solutions.
What we’re seeing now with Layer 2 – especially the advances in finality and and security – gives me more confidence than ever in the commercial viability of blockchain-based applications.
- Any predictions on when ETH 2.0 will go live?
Andrew: As of January 31, 2022.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/blockchain-prophet-andrew-keys-predictions-for-ether-in-2021/
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