I really like this team and this project. I love how network effects are built in and they pursued a hodling is using model. I love that they hit roadmap dates and include new unexpected features all the time.
With that preamble I have been thinking about bitcoin dominance going ever higher and I recall a medium post a year ago that discussed the idea that if all alt coins have a store of value component to their value it’s difficult to compete with btc. For finance guys out there it’s similar to the risk free rate. If btc goes up 10x every four years, that is the store of value bar that an alt needs to hit. If an alts valuebis toes to its adoption (Enj) but your adoption rate is slower than btc appreciation, it makes sense for users to hold bitcoin instead of your alt. The expected return of the more risky alt must be higher than btc. I think this dynamic is hurting enjin. If I can make 3x with enjin and 10x with bitcoin why would I want items stored backed by enjin. Someone might make nfts backed by btc which will dominate the nfts space. In order to close this vulnerability, enjin must make nfts appreciate with btc. (Even if enjin will now appreciate at an even slower rate)
I think the solution is to allow enjin items to be backed by enjin and/or btc (or at least Wbtc). This way your good appreciates with bitcoin and you don’t mind holding it due to opportunity cost. I think even more people will want nft goods that have btc appreciation built in. They will pay more for them if there is less opportunity cost. Enjin can succeed or fail by getting more people in the multiverse and not requiring them to lock up money in a good (enjin backed nfts) that will appreciate slower than btc .
How this could work. I love the hodling is using framework. Perhaps every item would be forced to hold enjin in proportion to the real world ratio between the two. This would be almost all bitcoin today but if enjin closes the gap each item would be backed by mor...