Skip to content

Commit

Permalink
Merge pull request ethhub-io#138 from tbm/lindy
Browse files Browse the repository at this point in the history
Add Wikipedia link for Lindy effect
  • Loading branch information
sassal authored Jan 5, 2019
2 parents 2ade971 + c54ea37 commit f28639f
Showing 1 changed file with 1 addition and 1 deletion.
2 changes: 1 addition & 1 deletion ethereum-basics/what-is-ether/medium-of-exchange.md
Original file line number Diff line number Diff line change
Expand Up @@ -2,7 +2,7 @@

Ether is used as a medium of exchange within the Ethereum economy for a wide range of apps, with dapp providers accepting it in exchange for fungible / non-fungible tokens, or other services. It is also used as a unit of account by various parties (including companies that have raised Ether via ICOs). Finally, Ether has historically been used as a store of value, with investors and speculators purchasing Ether to hold for investment purposes, given its relative scarcity, predictable supply growth, and inherent utility.

An object (physical or digital) must typically exhibit five distinct attributes in order to be considered money: fungibility, durability, portability, divisibility and established history (lindy effect).
An object (physical or digital) must typically exhibit five distinct attributes in order to be considered money: fungibility, durability, portability, divisibility and established history (see the [Lindy effect](https://en.wikipedia.org/wiki/Lindy_effect)).
Ether is highly portable (because it’s digital), durable (again, because it’s digital), divisible (up to 8 decimal places), but has limited fungibility (ETH tokens are interchangeable with one another, but accounts/addresses can be blacklisted quite easily. Privacy protocols such as zk-SNARKs will eventually improve this property for Ethereum).

While the Ethereum network is only 3 and a half years old, it continues to build a strong established history. The Ethereum network (and Ether) have so far survived The DAO, multiple large hacks of smart contracts, multiple protocol-level exploits, the Shanghai DoS attacks, constant negative remarks from the wider crypto community and multiple bear markets (including a current 94% drop in price).
Expand Down

0 comments on commit f28639f

Please sign in to comment.