Trader University explains the fallacy of smart contracts as an excuse to use any other blockchain.

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In this video, I discuss the economics of utility tokens that are used to power smart contract networks, like Ethereum, Solana, and Avalanche.

I am skeptical that utility tokens (like ETH as gas) can accrue value over the long-term. Whenever gas fees become too high on one network, it makes sense for developers and app users to migrate to a network that offers lower fees.

This leads to a “race to the bottom,” where low fees become more important than any network effects that might help a network accrue value.

Since crypto is usually open source, it is really easy to “copy and paste” a network and create competition with lower fees.

If it is possible to run smart contracts on a second layer/sidechain of Bitcoin and then settle them to the main chain, there is a good chance that Bitcoin not only wins the store of value race, but also the smart contract race, by providing the most secure settlement layer in the world.

Not investment advice! Consult a financial advisor.

Binance Smart Chain (BSC):…


Avalanche smart contracts:…

Building smart contracts on Bitcoin:



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