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“Gilortul” and “Polovrăgeanca” banks, founded in 1916, President Ioan Gh. Ionescu (1931)

Popular banks were founded by teachers between the 19th and 20th centuries. Most were in the counties of Dâmbovița, Dolj and, very importantly, Gorj. Gheorghe Dumitrescu-Bumbești himself said about this situation: “A handful of people took up the fight and already 3 counties have listened to us. The large number of economic companies that we have set up in these 3 counties is the signal that poverty, in the Romanian home, must disappear, and the foreign moneylender…must leave. Let all those who miss the country join us, and by educating the peasant, let him know how to work, how to save, how to help himself with his own money, taking from popular banks”.

After the unfortunate death of Dimitrie Brezulescu in 1916, I. Dem Petrescu effectively managed the “Gilortul” and “Polovrăgeanca” banks.

In order to overcome the lack of capital in the Romanian village world, the intelligentsia was in favour of associations at the end of the 19th century and the beginning of the 20th century, one of the forms of association being the founding of popular banks aimed at offering cheap loans to the peasantry for the purchase of land, animals, agricultural tools and the founding of households. In this way it was considered that the peasantry would evolve and the Romanian village would have the opportunity to modernise, but also as “an instrument intended to contribute to the harmonisation of the interests of all classes and social categories and to the development of the national economy”.
Our county was one of the leading counties of the cooperative movement of those times, names such as Gheorghe Dumitrescu-Bumbești, Alexandru Ștefulescu or Dumitru Brezulescu entering history precisely as a result of the activity carried out in this field. Gh. Dumitrescu-Bumbești stated that “cooperation is a serious and sound way of improving the country’s general economy and harmonizing the social classes”, because these classes “organized on the basis of cooperation, rising economically, acquire a state of mind and a higher consciousness, thus forming a firm and healthy foundation for the entire social structure, which ensures not only the existence of the state, but also its sound development”.

People’s Bank at Polovragi
The wind of cooperation blew to the farthest corner of Gorj County, leading to the establishment of the Popular Bank “Polovrăgeanca”, the credit and economy society of Polovragi commune, on 29 September 1904. The initiative was taken by 36 leading villagers of the commune, depositing a share capital of 2110 lei “of which 211 lei have now been paid at the time of establishment, with the remainder to be paid gradually, in monthly proportions”.
Among the initiators and the amounts deposited, we mention: priest Miron Constantinescu (700 lei), Petre Tucă (100lei), Const. Chivu (20lei), Nae Popescu (100lei), Dumitru Andronescu (50lei), N. Popescu (200lei) etc.
The Board of Directors was composed of 9 people, namely: priest Miron Constantinescu – president, Nicolae Popescu – vice-president, Nae Popescu, Ion Fl. Simionescu, Ion Ștefu, Petre Zăvoianu, Petre Tucă, M. Misăilescu, N. M. Iancu-members.
The board of censors was composed of 3 shareholders: Eftemie Diaconescu, Ion I. Pătroescu and Dumitru Antonescu. Major inhabitants of Polovragi, Baia de Fier and Sârbești communes, who were not part of another cooperative with the same objective, could be members. At the beginning, the bank’s activity was limited to granting loans, but in the following years it diversified and expanded.
After the unfortunate death of Dimitrie Brezulescu in 1916, I. Dem Petrescu effectively managed the “Gilortul” and “Polovrăgeanca” banks, energetically applying the moral principles that were at the foundation of the banks and their companies: He bought Brezulescu’s houses and donated them to the Ministry of Health for the establishment of a hospital in Novaci; he built the church and the school in Novaci; the church and the school in Polovragi; he organized country festivals and financed works for the electrification of the villages of Novaci, Hirișești, Pociovaliștea, Sitești, Bumbești-Pițic, Poienari, Baia de Fier, Polovragi and Cernădia, which were completed in 1939.
In 1928, this bank had 92146 share capital, 184 members and 270882 lei deposits for fructification.
In 1931, when all companies were obliged to re-register with the Chamber of Commerce and Industry, the bank had a subscribed capital of 736168 lei, with the same amount paid in cash. The Board of Directors consisted of 8 members, the president being Ionescu Gh. Ioan and the vice-chairman, priest Dumitrescu Nicolae.


Băncile populare au fost înfiinţate de învăţători la graniţa dintre secolele XIX şi XX. Cele mai multe erau în judeţele Dâmboviţa, Dolj şi, foarte important, Gorj. Despre această situaţie, chiar Gheorghe Dumitrescu-Bumbeşti spunea: „O mână de oameni am întreprins lupta şi deja 3 judeţe ne-au ascultat. Numărul mare de societăţi economice ce am înfiinţat în aceste 3 judeţe este semnalul că sărăcia, din casa românului, trebuie să dispară, iar străinul cămătar…trebuie să plece. Unească-se cu noi toţi cei cu dor de ţară, şi deşteptând pe ţăran, să ştie cum să muncească, cum să-şi facă economii, cum să se ajute tot din banii lui, luând de la bănci populare”.

După regretabila dispariţie a lui Dimitrie Brezulescu în anul 1916, I. Dem Petrescu a condus efectiv băncile „Gilortul” şi „Polovrăgeanca”
După regretabila dispariţie a lui Dimitrie Brezulescu în anul 1916, I. Dem Petrescu a condus efectiv băncile „Gilortul” şi „Polovrăgeanca”

Pentru înlăturarea lipsei de capital din lumea satului românesc, intelectualitatea a fost favorabilă asocierilor la sfârşitul secolului al XIX-lea şi începutul secolului XX, una din formele de asociere reprezentând-o şi întemeierea băncilor populare menite să ofere credite ieftine ţărănimii pentru cumpărarea de pământ, animale, unelte agricole, întemeierii de gospodării. În felul acesta se considera că ţărănimea va evolua iar satul românesc va avea posibilitatea să se modernizeze, dar şi ca „un instrument menit să contribuie la armonizarea intereselor tuturor claselor şi categoriilor sociale şi la dezvoltarea economiei naţionale”.
Judeţul nostru a fost unul dintre judeţele fruntaşe ale mişcării cooperatiste ale acelor vremuri, nume ca Gheorghe Dumitrescu-Bumbeşti, Alexandru Ştefulescu sau Dumitru Brezulescu intrând în istorie tocmai ca urmare a activităţii desfăşurate în acest domeniu. Gh. Dumitrescu –Bumbeşti afirma „cooperaţia reprezintă o cale serioasă şi temeinică de propăşire a economiei generale a ţării şi de armonizare a claselor sociale”, deoarece aceste clase „organizate pe baza cooperaţiei, ridicându-se economiceşte, dobândesc o stare de suflet şi o conştiinţă superioară, formând prin aceasta o temelie trainică şi sănătoasă întregului aşezământ social, fapt care asigură nu numai existenţa fiinţei statului, dar şi temeinica lui dezvoltare”.

Bancă Populară la Polovragi
Vântul cooperaţiei a suflat până în cel mai îndepărtat colţ al judeţului Gorj, determinând în anul 1904, la 29 septembrie, înfiinţarea  Băncii Populare „Polovrăgeanca”, societatea de credit şi economie din comuna Polovragi. Iniţiativa au avut-o 36 de săteni fruntaşi din comună, depunând un capital social de 2110 de lei „din care s-au vărsat acum la constituire 211 lei, urmând ca restul să se verse treptat, în proporţii de pe lună”.
Dintre iniţiatori şi sumele depuse, amintim: preotul Miron Constantinescu (700 lei), Petre Tucă (100lei), Const. Chivu (20lei), Nae Popescu (100lei), Dumitru Andronescu (50lei), N. Popescu (200lei) etc.
Consiliul de administraţie era compus din 9 persoane şi anume: preotul Miron Constantinescu-preşedinte, Nicolae Popescu-vicepreşedinte, Nae Popescu, Ion Fl. Simionescu, Ion Ştefu, Petre Zăvoianu, Petre Tucă, M. Misăilescu, N. M. Iancu-membri.
Consiliu censorilor era compus din 3 acţionari: Eftemie Diaconescu, Ion I. Pătroescu şi Dumitru Antonescu. Puteau fi asociaţi locuitorii majori din comunele Polovragi, Baia de fier şi Sârbeşti, care nu făceau parte dintr-o altă cooperativă cu acelaşi obiectiv. La început activitatea băncii s-a rezumat la acordarea de credite, pentru ca în anii următori să se diversifice şi să ia amploare.
După regretabila dispariţie a lui Dimitrie Brezulescu în anul 1916, I. Dem Petrescu a condus efectiv băncile „Gilortul” şi „Polovrăgeanca”, aplicând cu energie principiile morale care au stat la temelia întemeierii băncilor şi societăţilor lor: a cumpărat casele lui Brezulescu şi le-a donat Ministerului Sănătăţii pentru înfiinţarea unui spital la Novaci; a ridicat biserica şi şcoala din Novaci; biserica şi şcoala din Polovragi; a organizat serbări câmpeneşti şi a finanţat lucrări pentru electrificarea satelor Novaci, Hirişeşti, Pociovaliştea, Siteşti, Bumbeşti-Piţic, Poienari, Baia de Fier, Polovragi şi Cernădia, care au fost finalizate în anul 1939.
În anul 1928, această bancă avea 92146 capital social, 184 societari şi 270882 lei depuneri pentru fructificare.
În 1931, când toate societăţile comerciale au fost obligate să se reînscrie la Camera de Comerţ şi Industrie, banca avea un capital subscris de 736168 lei, cu aceeaşi sumă vărsată numerar. Consiliul de administraţie era format din 8 membri, preşedinte fiind Ionescu Gh. Ioan iar vicepreşedinte preotul Dumitrescu Nicolae.
Din păcate, dosarul referitor la banca populară „Polovrăgeanca” păstrat în fondul arhivistic „Camera de Comerţ şi Industrie Craiova-Sucursala Tg-Jiu”, aflat în depozitele Serviciului Judeţean Gorj al Arhivelor Naţionale, nu păstrează informaţii despre desfiinţarea acestei bănci, fapt întâmplat undeva la începutul epocii comuniste. Cert este că, odată cu instaurarea regimului comunist şi promulgarea Decretului 197 din 12 august 1948 privind lichidarea întreprinderilor bancare şi a instituţiilor de credit, băncile populare şi-au încheiat activitatea, după ce, prin operele sale de binefacere şi cultură au ajutat şcolile, bisericile, societatea. (Cristina Vasiloiu)

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Digital Assets update

MicroStrategy Liquidates $103M Worth Bitcoin

Alongside Bitcoin’s drop under $25,000, it is important to recall MicroStrategy’s CFO’s comments. The comments were regarding the possibility of getting a margin call at $21,000 on the company’s huge BTC holdings.

On the May 3 earnings call, Phon Le, the firm’s new Chief Financial Officer, described the collateralization method on MicroStrategy’s Bitcoin position. He assured that they need not put extra cash into their holdings. As MicroStrategy prepares its first margin call, investors are at ease. This is due to the large liquidity collateral at the company. The company’s current capital is more than sufficient to support the present position and begin a fresh one.

Coin Center takes US Treasury to court over alleged financial spying

Coin Center filed a lawsuit against the Treasury Department in federal district court — challenging the enforcement of Section 6050I’s reporting mandate. Coin Center, a Washingon, DC-based non-profit blockchain advocacy group, filed a lawsuit against the United States Department of the Treasury for allegedly provisioning an unconstitutional amendment in the controversial infrastructure bill.

The 6050I amendment requires individuals and businesses to report information related to all incoming transactions worth $10,000 or more, which includes the sender’s name, date of birth and Social Security number. Coin Center, in its announcement, highlighted how the amendment affects the entire crypto community, including the NGOs that receive anonymous donations and nonfungible token (NFT) artists who will have to reveal their client’s personal information to the government.

True Global Ventures doubles down on Web3 with $146M ‘follow-on’ fund

The TGV4 Plus Follow On Fund was led by a group of 15 general partners who committed over $4 million on average (over 40%) into the fund.

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Crypto weekly headlines

The world’s largest investment company BlackRock will allow clients to invest in cryptocurrencies

The world’s largest financial asset management company BlackRock is preparing to offer customers products for trading cryptocurrencies. This writes CoinDesk, citing sources.

📌 The company, which manages more than $10 trillion in assets for institutional investors, intends to enter the cryptocurrency space with the addition of “trading support for clients and then its own lending institution.” In other words, customers will be able to borrow from BlackRock against cryptocurrency collateral.

📌 One source said that BlackRock, whose customers include pension, trust and government funds, plans to organize cryptocurrency trading through its Aladdin (from “Asset, Liability, Debt and Derivative Investment Network,” meaning Asset, Liability, Debt and Derivative Investment Network) investment platform. The timing of the initiative’s launch remains unknown.

McDonald’s plans to open a meta-universe with a virtual restaurant

McDonalds plans to offer a virtual restaurant with real and virtual goods, as well as home delivery of virtual goods.

This is evidenced by the new trademark applications that the company has filed. What’s interesting is that McDonald’s often trolls the cryptocurrency community, urging them to take their jobs after every Bitcoin drop.

Tesla made $627 million on bitcoin investments

In 2021, world-renowned electric car maker Tesla earned $627 million from its bitcoin investments.

📌 According to the company’s financial report for the last year, the company spent $1.5 billion buying bitcoins. Tesla sold $128 million worth of coins during 2021, and as of December 1, the value of coins on the company’s balance sheet reached $1.99 billion.

📌 Thus, the investment in the digital asset generated a profit of $627 million, while the profit of $499 million remained unrealized.

“We will continue to follow our investment strategy to meet our liquidity and risk reduction objectives. It includes purchases of U.S. Treasury securities, equities and digital assets.”
 
“We believe in the long-term potential of cryptocurrencies as an investment vehicle and a liquid alternative to cash,” Tesla said in the report.

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Crypto Stats and news for beginning 2022

The trading volume on decentralized Ethereum exchanges exceeded $1 trillion in 2021. The segment leader Uniswap accounted for more than 64% ($686 billion). SushiSwap exceeded $156 billion, Curve – $84 billion.

The year 2021 opened a lot of L2 solutions to the cryptocurrency community to scale Ethereum. The total blocked liquidity in such protocols exceeded $5.5 billion by the end of the year. Arbitrum remains the segment leader ($2.4 billion). The top three are dYdX and Loopring with almost $1 billion and more than $550 million, respectively.

Bitcoin is ‘integral part of digital asset revolution’, says IMF

IMF economist Tara Iyer said that “Crypto assets such as Bitcoin have matured from an obscure asset class with few users to an integral part of the digital asset revolution”, adding this transition comes along with financial stability concerns.

In absolute terms, the overspills from Bitcoin to global equity markets are significant, explaining about 14% to 18% of the variation in equity price volatility and eight to 10% of the variation in equity returns.

Pakistan’s central bank reportedly wants to ban crypto

Pakistan’s finance and law ministries are yet to make a decision on a potential blanket ban on crypto in the country. The State Bank of Pakistan (SBP) is reportedly seeking to ban all cryptocurrency transactions in Pakistan.

Pakistan’s Sindh High Court reportedly held a hearing related to the legal status of cryptocurrencies in the country, in which several Pakistani authorities, including the SBP, submitted a document to the court, arguing that cryptocurrencies like Bitcoin (BTC) are illegal and cannot be used for trade. 

Tether has blocked 160 million USDT 

According to Etherscan, stabelcoin issuer Tether recently froze three addresses containing over $160 million worth of USDT.

A company spokesperson stated that, Tether has blocked 3 addresses with a total of $160 million at the request of law enforcement, and at this time they can’t disclose details.

Recall: Tether has previously stated on multiple occasions that it regularly cooperates with regulators to oversee suspicious accounts, perhaps this is just the beginning

Visa survey finds 25% of firms willing to accept cryptocurrency payments

About 25 percent of small businesses in nine countries would accept cryptocurrencies as a form of payment, according to the latest Visa Inc. survey.

📌 The survey was conducted among 2,250 small business owners from the United States, Canada, Brazil, Singapore, Hong Kong, the United Arab Emirates, Germany, Ireland and Russia.

📌 The researchers found out that digital money can become a universal means of payment. In addition, Visa surveyed 1,000 other adults in the U.S. and 500 adults in nine countries.

“I think people feel safer with cryptocurrencies,” said Visa global director of commercial sales and acquisitions Janie Mundy.

📌 While the use of bitcoin and other cryptocurrencies has increased globally over the past two years, and digital assets are popular with investors of all levels, they are still not a payment instrument.

The number of U.S. cryptoinvestors increased by 70% in 2021

According to the latest survey conducted by cryptocurrency exchange Huobi, the majority of cryptocurrency owners from the United States made their first crypto investments in 2021.

📌 The survey covered 3,100 U.S. adults and was designed to gauge respondents’ knowledge of cryptocurrencies, their sentiments and attitudes toward the crypto market. The study found that 68% of respondents first learned about crypto and started buying it in 2021. 21% of respondents started investing more than two years ago. 12% of Americans surveyed made their first crypto investments in the last four years, and 9% got into digital currencies more than four years ago.

📌 However, according to the survey results, Americans are not investing too much in crypto. 46% of those surveyed have invested $1,000 or less in cryptocurrency. 25% reported owning between $1,000 and $10,000 in digital currencies.

On-Chain Data Shows Number of ETH Holders At All-Time High

There are now over 68 million Ethereum addresses holding a balance, showing steady growth despite a declining price.

The number of Ethereum addresses holding ETH is at an all-time high. Transactions are also trending upward, with the number of daily ETH transactions at approximately 1.2 million.

Coinbase partners with Mastercard

Coinbase has partnered with Mastercard to simplify the NFT buying process for regular users. 

Coinbase believes that: “Just as we first helped millions of people access Bitcoin in an easy and reliable way, we want to do the same with NFT.”

To recap: Coinbase recently launched a peer-to-peer NFT marketplace called Coinbase NFT. And the aggregate trading volume of NFT has grown almost 400 times in a year.

UK will tighten the terms of cryptocurrency advertising

📌 The U.K. Treasury Department announced that it will take tough action against “misleading cryptocurrency advertising. Such campaigns will be brought in line with the rules applicable to traditional finance, “ensuring their honesty and clarity.

📌 Only organizations already regulated by the Financial Conduct Authority (FCA) or the Bank of England will now be able to carry out crypto-advertising campaigns.

📌 The statement notes that while about 2.3 million Britons own cryptocurrencies, awareness of the asset class is declining. In this regard, most advertising is aimed at retail investors with low knowledge, which makes them bear significant financial risks.

📌 The agency emphasizes that strengthening consumer protection will not be accompanied by any risks for innovation.

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Bitcoin’s death has been announced 42 times this year vs. 124 times in 2017

📌 The cryptocurrency market has seen high volatility in recent days. And the price of Bitcoin has crossed the psychological level below $50k this month.

📌 If you consider the current time of cryptocurrency market, the number of times Bitcoin was “seen off” was 42 times, which is 3 times more than the entire year 2020 (14 times).

Also Bitcoin just made an All-Time-High versus Turkish Lira, which is in a free-fall !

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How exchanges created the last week crypto market crash

The owner of exchanges don’t really care the price. THey are doing business to print profit/revenue in every month/quarter. Binance is a big player in all exchanges. The last crash at last Saturday was definitely created by Binance.

Open Interest was swept out bigly. In the eyes of traders, this was crash/market bloody/nightmare/Fear but in the eyes of exchanges, this was harvest after long time accumulation of overleverage of long positions. That happened one time per month no matter where/how price btc is going

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Crypto update, Ethereum and Florida

Ethereum (ETH) Average Gas Down 50% in Six Weeks

Ethereum (ETH), the second cryptocurrency, is often criticized for high transactional fees (gas). At the same time, on average, transactional fees are plunging for six weeks in a row.

Ethereum average gas fee lost 50% in less than two months. According to data shared by third-party trackers, Ethereum (ETH) gas, i.e., the dynamic commissions all Ether and ERC-20 transactions are charged with, have plunged since late October.

The volume of destroyed ethers as commissions exceeded the equivalent of $ 4.5 billion. Recall that ETH coins are burned with each transaction, and this has been happening since August 5, 2021.

Florida governor to allow businesses to pay state fees in cryptocurrency

📌 Florida Governor Ron DeSantis has unveiled a plan that would allow businesses in the state to pay state fees in cryptocurrency. The cryptocurrency-related proposals, the official has included in the state’s 2022 budget, Bloomberg reports.

📌 DeSantis also said that the state will launch pilot programs to explore the use of blockchain technology in Medicaid (state Medicaid program) payments and vehicle registration. The latter will be run with the participation of the Florida Department of Highway Safety and Motor Vehicles.

📌 The governor said crypto-enthusiasts are moving to South Florida, where officials and businesses have supported the blockchain industry. For example, the Miami Heat club’s basketball stadium has been renamed FTX Arena. FTX is a cryptocurrency exchange owned by billionaire Sam Bankman-Fried.

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Huge 2 billion dollars longs liquidations together with unexpected 400 million dollars shorts liquidations

So basically #BTC dumped from $69k to $42k

As a result of the collapse of bitcoin to 42,000, liquidations of ~ $ 2.4 billion were recorded. In total, the positions of more than 380 thousand traders were taken out. This is not a record yet, of course, but in history, such powerful plums often led to a rapid reversal.

– Funding rate is totally negative.

– BTC took support on 50 Day Moving Avg.

– 2.5 billion Long liquidations.

– Most of the leverage positions are out.

It means it is time for bounce !

https://t.me/Bitcoin_Ethereum_Trading
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ETHEREUM is well on its way to becoming one of the most productive assets in the world

The Ethereum blockchain began in 2015, offering 72M $ETH to over 10,000 #Bitcoin  addresses who participated in the ICO.

Fast forward to today, there is now 118M $ETH from block rewards across 135,734,686 recorded wallet addresses.

Of the initial ICO participants:

-81% of these wallets have only 1% of their initial balances or less

-9.5% have an unchanged balance (lost?)

-only 64 have actually increased their ETH holdings

A large majority of ETH is placed in smart contracts on the network. To be exact, it’s upwards of 26.86% of the supply of ETH.

That’s about 31,825,848 ETH, or $143B.

This is significant not only because of the mere size, but for what they are being used in…

These are decentralized applications that power virtual economies, stable coins, and many other things home to Ethereum.

Of that 26.86% in smart contracts, 77% is locked in DeFi.

That’s an astounding 24.5M ETH, representing 20.67% of the total supply.

Still not impressed? Let’s talk about exchanges next.

The supply of $ETH on exchanges is reaching levels near three year lows, a trend that has been continuing since late 2020.

According to Glassnode, exchange balances for ETH have recently hit as low as just 14,246,767 ETH…

That’s about 12% the total supply of ETH, a figure down from 17.3% at the start of the year

Low exchange balances suggest that investors do not have any plans to sell, driving illiquidity & volatility further into the mix

Next we can take a look at staking…

With the ETH 2.0 deposit contract amassing upwards of 8,394,818 ETH, months before launch.

That’s 7.08% of the ETH supply, and this is expected to grow significantly as APY increases following the merge, with transaction fees going to validators.

So… what do we have so far?

We’ve covered the amount of ETH in smart contracts, the amount locked in DeFi, ETH held across exchanges, and the total that is staked, combined making up around 45.94% of all ETH in existence.

What’s next? This is where things get even more interesting…

Did you know, more than 50% of the supply of ETH hasn’t moved in over a year?

The further we go back, the smaller this number gets.

As little as 20% of the supply has been recorded as being active since October of 2017

It’s fair to say the actual circulating supply of ETH is a lot lower than commonly believed.

This will be even more evident with EIP-1559 burning a mind-blowing 1,016,743 ETH in just three months since being initiated.

That is nearly 1% of the entire total supply burnt.

What about layer two?

There’s quite a bit of ETH there, as well. In fact, there is a respectable 5,807,590 ETH bridged on to layer two networks…

which is about 4.9% of the total supply of ETH

As rollups continue to develop we can expect this number to grow exponentially

Let’s now talk about people using Bitcoin on Ethereum.

Bitcoin holders are wrapping their coins on to Ethereum to participate in DeFi at a tremendous rate

As of this writing, there are 312,566 #Bitcoin on Ethereum. That’s a shocking 1.4% the total supply of BITCOIN.

& I haven’t even mentioned NFTs yet, which are breaking records every day

If we took just the floor price of bored apes, land in $SAND, and crypto punks we would reach the combined valuation of $6.38B (at current floor price)

That’s roughly 1,409,944 ETH, or 1.18% of all ETH

When you also start to consider the fact that there are 13,636 dApps, and more than 300,000 ERC20’s deployed on the network, I think you’ll start to get what I mean by a “𝘱𝘳𝘰𝘥𝘶𝘤𝘵𝘪𝘷𝘦 𝘢𝘴𝘴𝘦𝘵”

Let’s recap…

We have:

smart contracts – 26.86%
exchange balance – 6.8% supply decrease
staking – 7.08%
dormant (lost) – ~20%
eip-1559 – 4% (annually)
layer two – 4.9%
btc on eth – 3.45%
nfts – 1.18%

That’s about 74.27% of the supply we can expect to HODL, & likely an underestimate.

My point of these statistics weren’t to just shill ETH, but to point out the very simple laws of supply & demand at play.

Blockspace on ETH is highly sought after, & new users are joining the network every day.

Layer two will only help to onboard millions of users with low fees

We are very quickly moving from the mindset of “I buy ETH because it appreciates,” to the mindset of “I buy ETH to do things.” @croissanteth

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I think real estate will have been a poor investment 20y+ from now.
Some reasons why

1) Options

Our parents’ generation had one asset class to invest in: their home.

Coming generations will have a lot more options available to them. Stocks are much more available now, and crypto + metaverse assets will add tons of new assets.

So RE has a lot more competition.

2) Politics

With rising inequality, RE ownership will likely get more concentrated.

If >50% rent (rather than own), politicians will pander to their wishes.

Pro-tenant policies will make it less attractive to own property.

3) Population growth

The “always up” mindset of property prices has been accompanied by an insane population growth.

This will slow down over the next decades.

Less people growth, less growth in demand for housing (ceteris paribus).

4) Leverage

Buying a home has been the only way to get cheap leverage on an investment.

If you have $100k in savings, banks can offer (at least) $400k in a mortgage, giving you 5x leverage at ultra-low interest rates.

This is changing.

You can already collateralize crypto. For many reasons it’s a vastly superior asset to use as collateral, and it’ll only get better.

Over time this means the RE advantage of leverage faces more competition. (Similar to the 1st point.)

5) Mobility

Coming generations will move around more, which means owning a home is less appealing (except for rental income).

Homeowners age is at ATH by the way.

In summary:

I expect the “always up” trend of property prices to meet its end in our lifetime – possibly sooner than most think.

Alex Svanevik