Software is Eating Money

(Paraphased and condensed article by Boston C! written by Bankless and authored by Sean Ryan Adams)


Here is a Marc Andresson quote: "software is eating the world." The grim-reaper of industries is software.



"It seems that all industries are destined to become software-enabled industries. Software has infiltrated more aspects of our lives than we would have predicted just a few short years ago.

"Nowadays, common household items have computer chips running software in them. Phones, watches, cars, lights, thermostats, beds, cameras, coffee mugs… and they’re all running software that improves the product and makes human life more programmable and comfortable.

"More and more, all of the products in our lives are one part thing, one part software.

"The march of ‘software eating the world’ has so far been relentless, yet it is uneven. Some industries are more suited for their ‘software upgrade’ than others, and easily accept software integrations into a previously mundane object. Other industries need more time in order to find the optimal way to incorporate software.

"Software has breached the walls of money and finance. Money is now on the long list of things that software has come to improve. Watching the process of software upgrading our money is going to be an interesting time in history!"



"Elon Musk likes to boast about the ability of Teslas to get ‘software upgrades’ that improve the value of the car as Tesla software gets more sophisticated. There have been a few Tesla software upgrades in the past that actually have increased the range and efficiency of the cars.

"If we can upgrade our cars…why can’t we upgrade our money?

"Perhaps the major reason why software comes to consume every industry it touches is software’s ability to improve and become more useful. If we don’t have the software to disrupt a particular industry today… just give it a few years. Software will improve and disrupt it in a few years instead."


Ether: A Money that gets Software Updates. Ether is an asset that ‘software updated’ itself into arguably the world’s most unique and compelling asset of all time.

ETH is money, and thanks to Ethereum our money is software. Ether is getting two major software upgrades to what it can be as money.
  • Proof of Stake: ETH issuance is minimized, while access to ETH issuance is maximally democratic. Notably, PoS also formally transitions ETH into an income-generating capital asset.
  • EIP1559: ETH becomes increasingly scarce as a function of the magnitude of the Ethereum economy. As the Ethereum economy becomes ‘hot’, more ETH is burnt. As the Ethereum economy cools off, less ETH is burnt.

We all know these upgrades; all of Ethereum has been chanting this chant for years now. The cool part about Ethereum is that these are just the protocol upgrades to ETH the asset.

But ETH doesn’t only get upgrades from the protocol. Every improvement to DeFi is an upgrade to ETH

DeFi is known to heavily innovate and iterate. Standing still in DeFi is falling behind… rapidly. Last week, I wrote ETH: The World's Most Capital Efficient Asset, which illustrated DeFi’s march towards improving the utility of ETH which illustrates the improvements that DeFi has made over the last 3 years, and how that has upgraded the utility of ETH every step of the way.

The main collateral asset in DeFi is ETH, and it’s truly the only asset that DeFi apps can capture value in, while still being 'Decentralized’ Finance. This makes growth in DeFi a fundamental driver of the increasing value of ETH. When DeFi is bigger, ETH is more useful.

All of these things increase the optionality that ETH holders have, in how they chose to leverage the capital in their ETH. DeFi protocols combining to power ETH as money

Money is power. Money is optionality of the future. The more money you have, the more power and choices you can access.

And all of this is before ETH becomes Ultra Sound Money at the protocol level.

Go read the full article here: https://newsletter.banklesshq.com/p/software-is-eating-money-market-monday-960. It's worth every minute!


Not financial advice, but I'm trading into relationships, buying silver, gold and cryptos!


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Boston C! Up and away!



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