Fidelity is valuing ETH as money
2025-07-10 17:21:05
Main Idea
Fidelity Investments proposes valuing blockchains using a GDP-like formula, treating ETH as money, but the model raises conceptual questions about its applicability to blockchain ecosystems.
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.
Description
A valuation model for “blockchain GDP”
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