Fidelity is valuing ETH as money

Key Points

1. Fidelity's report suggests valuing blockchains based on a GDP formula (C + I + G + (X-M)), using ETH as an example.

2. Components of the formula include: C (gas fees), I (staked assets/liquidity pools), G (Ethereum Foundation spending), and X-M (stablecoin flows/bridge activity).

3. The model faces criticism for equating blockchain activity with GDP, as GDP measures domestic production, not token-based transactions.

4. Fidelity argues ETH functions as a medium of exchange but lacks justification as a unit of account, a key aspect of money.

5. Staking ETH is categorized as 'Investment' (I), but unlike real-world investment, it doesn't create new productive capacity, weakening the GDP analogy.