Ethererum For Investors #16 – What Is The Ethereum Value Stack?

What’s up, guys? This is Tai Zen again. In this video, I want to share with you what I call the Ethereum Value Stack. I don’t know what else to call it, so I just call it the Ethereum Value Stack.

I going to let you know that I was the first one to come up with this terminology and I’m going to explain it to you guys.

People always ask me if they should keep their money in the Ethereum, the DAO, the Lisk, the Waves or other stuff, especially when it comes to the Ethereum cryptocurrency or the Ethereum blockchain.

The reason for that is because you need an Ethereum to invest in projects like Augur, which is the gambling side, Slock. It, DAOhub.org or upcoming projects such as Akasha and other social media projects that they’re looking to build on top of the Ethereum blockchain.

There’s going to be dozens of projects coming out that require you to use Ethers to invest into their ICO.

And the question is whether you should keep your Ethers in Ethers or convert them into like the DAO or other things like that. Before answering this, I would like you guys to know this.

When checked on coinmarketcap.com on May 22nd, 2016, the Ethereum network is worth 1.1 billion USD. Now, I want you to imagine that the Ethereum is the base or the foundation level of all the other projects going to be built on top of it.

Then, they come out with the other ICO or other projects such as Slock. It, Augur, Akasha, which is like the Ethereum Facebook Project that goes on top of Ethers. Every time there is a new Ethereum-based project showcasing, I believe that Ether’s value will increase.

Let’s calculate this together. At first, we got the Ethereum layer or the Ethereum foundation already, and that’s worth 1.1 billion USD. Let’s just say Slock. It raises money from the DAOhub and someday the Slock. Its network is worth $500 million USD.

When that lays on top of the Ethereum network, the entire network itself is worth 1.1 billion USD.  That is what I called the Ethereum Value Stack. Then, if you take the Augur project, which estimated value is around 1 billion USD from my perspective.

Since we’re putting that on top of the Ethereum blockchain, it comes out and public works in everything. Now we got the Ethereum, the Slock. It, and the Augur. If we combine this whole stack, the value of this stack is 2.5 billion USD.

This is what I call the Ethereum Value Stack. From where I stand, it could be totally wrong, but my belief is that every time you stack another layer, the value of Ethers goes up. Let’s just say you put the Akasha project on there and it’s worth 1 billion USD.

Now, you have a stack worth 3.5 billion USD. Therefore, the value of the Ethereum network is 3.5 times higher than its original one. Let’s just say that the Ethereum is… now it’s worth $15.

Added Augur and Akasha’s values which are $15 respectively since their total value is 1 billion USD each, Ethers now has the price of $45. Then, you got Slock.It price is worth 0.5 billion USD, which is equal to another $7 on top of that.

So the value of the Ethers underlying it is now going to be about $52. That’s what I call the Ethereum Value Stack because every time you add another layer or another project running on top of the Ethereum network, that increases the value of each Ether.

However, remember that it’s just my personal view. Now, where do we see this in real life? We see this in several circumstances if you go buy, let’s just say a basic model of the Lamborghini Huracan.

It’s around $190,000. If you get it with tinted windows on there, the price of the car will increase a little bit. If you take the factory wheels off and put gold plated wheels on there, then that price goes up a little bit higher. If you take the 500 horsepower engine and beef it up to 600 horsepower engine, the price will rise a little bit more. So if there are any accessories that you can add on top of the car, the value of it will increase.

That’s the reason why I say that the Ethereum network will increase in value. The more projects that go on top of the Ethereum network, the more valuable that the network becomes.

Let ‘s use another example instead of cars. Let’s look at homes. If you buy a home in the North Dallas area where I’m from. All the new houses are starting at $400,000.

That’s a very nice huge house with over 3000 square foot. It looks like a mansion compared to the houses in California or New York.

Now if you want marble floors or an onyx countertop or any stones that are more expensive, then what that does is increases the value of your house. Even if you decide to add solar panels, it increases the value of your house even more.

So everything that you do to improve the quality of your house, it improves the value of that house.

Through those examples, I want to say that every time you add an accessory that makes one thing more valuable, you increase the total overall value of that.

That’s what I believe is going to happen to the Ethereum network when a new ICO or new software project goes on top of it. That’s what I call the Ethereum Value Stack.

Because of that, I’m going to keep some of the Ethers that I own for the long term. I’ve already cashed out like 3000% out of the Ethers that I own. So I made over 3000% profit already from the Ethers that I got. But for the remainder of the balance, I put some of it into the DAOhub and then I kept a little bit into Ethers itself.

I believe that over the long term if the Ethereum grows, let’s say 1,000,000 or 2,000,000% like the Bitcoin did, it will grow dramatically. At that point, it really does not matter if you have a small number of Ethers or a large number of Ethers, any amount of Ethers will be a life-changing amount of money for you.

Keep in mind guys. The Bitcoin network was the first asset class to grow over 2,500,000%. Remember when Bitcoin first came out for trading on Mt. Gox, they were only valued at 5 cents and they grew to $1,100 or $1,200 depending upon what exchange that you use.

So it’s the only asset in human history to ever grow over 2,000,000% during its lifetime and it’s not done. It’s not done yet. If we believe that the Ethereum which is the second most popular and the most valuable network in the cryptocurrency industry, has a chance to even do half of what Bitcoin did and grow over 1,000,000%, then I believe that any small amount of Ethers will be valuable over the long term.

So hopefully this video answers your questions on the Ethereum value stack. I hope that helps you guys make an informed decision whether you should keep some of your Ethers, cash it out completely or use it to invest in other Ethereum projects.

That’s up to you guys, but I made sure that I kept a small amount Ethers in my personal portfolio so that in case Ethereum goes to the moon. Currently, it appears to be the next big thing in cryptocurrencies. So I’m going to make a small bet and keep a small inventory of it in my portfolio.

So thanks for watching this video guys. Give me a thumb up if you like these types of videos. If you don’t like it, give me a thumb down so I don’t waste time making it.

Thanks for watching this video guys. And if you have any friends or families that would like to invest in the Cryptocurrencies, we always provide new and free cryptocurrency videos made simple for you. Make sure that you let them notice and subscribe to this channel and I’ll see you guys in the future videos.

 

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