Hi Jow Forumsbros, I know that $1000 EOY LINK price is unrealistic (despite hoping for it), but how can the price of one LINK exceed that of one ETHER? How can a system (in this case LINK) exceed in value over the framework from which it's built upon (ETH)? Can it?
Yes, I'm a brainlet. inb4 :)
It literally can't despite what stinkies claim.
So LINK's price will always be less than or equal to the price of ETH? Intuitively, this makes sense to me but I'm not sure why and intuitions aren't always correct.
LINK is blockchain agnostic
youre a fucking dumbass, but if this isnt a fud post heres some reading...
The tokenomics of the LINK token.
1. Chainlink nodes will be paid in LINK tokens only. There will be conversion tools for people that want to use fiat but will be converted to LINK. at the end of the day only LINK tokens can power the network since the nature of ERC-677 token, built specifically for LINK, is to transfer data.
2. LINK tokens are used as collateral value. Smartcontracts will use Chainlink nodes that carry a % value of LINK to the value of the Smartcontract. So yes, you can start a node without LINK but no one will use it. High value smartcontracts or any contract that has value will use nodes that carry the same or a % of value of LINK.
3. Decentralized networks that are home to smartcontracts will need decentralized data to execute. Chainlink is currently the only option. Thats why you will see everyone in this space partner with Chainlink
So....
Smart contract creators will demand a certain level of reputation or amount of collateral, to be paid in LINK tokens, that suits the value of their smart contract. A $1million bond would require a lot more collateral, than, say a smart contract dealing with $100. You wouldn't select the low rep/low collateral available nodes for something like a huge bond. Chainlink is actually targeting these high value contracts. Sergey has discussed at length why high value contracts in the financial world require a decentralized oracle: it puts all the risk onto the oracle rather than the smart contract creator. The smart contract creator doesn't risk losing money - the node operators do. The Chainlink network is genius like that.
There is infinite amount of collateral available because the token price can rise to meet it.
Now you have to research how large ALL these markets are. derivatives, insurance etc... hint: Trillions.
Link is agnostic you retarded moron. Its middleware software fucking retard, any blockchain can use it if they need oracles for their smart contracts
Yes it can for instance if you make a token that represents a physically redeemable ounce of gold on the ETH blockchain that would be worth more than one ETH currently.
>tokenomics
fuck off stoner
How can a software company be worth more than a PC company?
This is a great explanation and precisely what I was looking for, thank you. I have some invested in LINK and I'm trying to work stuff out in my head before buying more. Truth be told, I'm going to screenshot your post and reference back to it later if I forget some of it. I'll reread the whitepaper as well.
Also, I know Jow Forums is filled to the brim with garbage lately but this wasn't FUD. I'm trying to learn.