![[Pasted image 20241208205232.png]] One challenge I find with the "Triple Point Asset" theory is that it often speaks the language of TradFi (traditional finance), making it a bit obscure for us crypto natives. - Capital Asset -> ??? - Commodity -> ??? - Store of Value -> ??? ![[tradfi_crypto 1.png]] If you're like me, you might find yourself constantly forgetting how Ethereum maps to the three key asset classes. I've decided to write this short post to remind myself and others of the *reverse mapping*! ![[crypto_tradfi.png]] ## BURN -> STORE OF VALUE With [EIP-1559](https://github.com/ethereum/EIPs/blob/master/EIPS/eip-1559.md), a portion of ETH gets burned with every transaction. This permanently removes ETH from circulation, introducing a deflationary dynamic that strengthens its scarcity over time. During periods of high blockspace demand, ETH becomes even more deflationary. This makes ETH a *Store of Value*, similar to gold in the traditional markets. ## GAS -> COMMODITY The **gas system** in Ethereum powers the Ethereum Virtual Machine (EVM). ETH is consumed to drive economic activity on the network. ETH is needed for every transaction, smart contract execution, and dApp interaction. This makes ETH as a *Commodity*, much like oil or electricity. ## STAKING -> CAPITAL ASSET Ethereum's Proof of Stake consensus enable ETH holders to lock up their tokens to validate transactions and secure the network. These stakers earn ETH rewards for doing so, making ETH behave like a **Capital Asset**—an investment that generates yield for its holder. This makes ETH a *Capital Asset*, similar to dividend-paying stocks in the traditional sharemarkets. ## FURTHER READING - [Ether: The Triple Point Asset](https://www.bankless.com/ether-a-new-model-for-money) - [Why Ethereum is Superior: The Triple Point Asset](https://zerocap.com/insights/articles/why-ethereum-is-superior/) - [ETH, the Triple Point Asset, Summarized! (🏠🛢👑)](https://www.reddit.com/r/CryptoCurrency/comments/pugfui/eth_the_triple_point_asset_summarized/)