Ryan Sean Adams

$2K to $250K per ETH.

How does that happen, Mike?

Let's start to define some of these terms because I know many bankless listeners from years back will be very familiar with terms like monetary premium and DCF.

But I also want this episode to be very accessible for someone who's kind of new-ish to crypto and hearing about ETH

maybe in this context for the first time, ETH is money.

So you said many models price ETH on a DCF model.

What is DCF and why is that the wrong way to price ETH?

It's time value of money stuff.

And when you say DCF model, I mean, part of the reason that some investors cling to a DCF model is because that's what they're used to for most capital assets out there, right?

So a capital asset is an asset that generates some level of returns.

You know, Buffett quite famously is a fan of capital assets.

And Buffett is one of the main characters of the essay that we'll talk about throughout this episode, this productive money essay that you wrote.

Now, because investors are so used to valuing capital assets like equities or rental properties or those sorts of things by DCF model, and they also see Ethereum, an ETH asset, generating some form of yield...

The knee-jerk reaction seems to be that they just apply the same DCF model to ETH.

And what you're saying is that is not the full story here.

In fact, the bigger part of the story is that Ether, the asset, should have what you've called a monetary premium.

It's a money.

And by that, I think you mean a store of value asset like Bitcoin and like gold.

How close to the mark am I in that?

Exactly.