New ask Hacker News story: Why Solana Won't Work
Why Solana Won't Work
2 by realpauleverton | 1 comments on Hacker News.
The Solana cryptocurrency has been hyped quite a bit recently (e.g. https://ift.tt/386N3hi) and has gained a lot in value. But it's fundamentally flawed. I'll explain: People are like “Solana is the new NASDAQ because transactions are cheap!”. But NASDAQ is worth $31 billion. Solana is worth $22 billion right now and it’s not even 0.1% of NASDAQ’s activity. More importantly, the token economics don't work. Since there are stablecoins and the network is composable you don’t need SOL to buy anything, you can use USD*. SOL is just fee collection and fees are small. So very little value and high risk that validating the network isn’t economical. Happy to see if I'm missing something but seems to me that Solana fundamentally can't work.
2 by realpauleverton | 1 comments on Hacker News.
The Solana cryptocurrency has been hyped quite a bit recently (e.g. https://ift.tt/386N3hi) and has gained a lot in value. But it's fundamentally flawed. I'll explain: People are like “Solana is the new NASDAQ because transactions are cheap!”. But NASDAQ is worth $31 billion. Solana is worth $22 billion right now and it’s not even 0.1% of NASDAQ’s activity. More importantly, the token economics don't work. Since there are stablecoins and the network is composable you don’t need SOL to buy anything, you can use USD*. SOL is just fee collection and fees are small. So very little value and high risk that validating the network isn’t economical. Happy to see if I'm missing something but seems to me that Solana fundamentally can't work.
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