Neither supply nor demand alone are enough to explain the huge salary differences
Ease & effectiveness of verifiability is the biggest major factor people miss.
Think about it:
- Graphics design: hard to do, but any random retard can nearly instantly determine if something looks good, with extremely little effort, and it’s effective in that they’re fairly right about if others will think it looks good = craters the market price, because very easy to outsource, because very easy for all to verify if good and much easier to enforce refusal to pay for garbage
- Construction worker: Semi-easy to verify how well the work is done. For lots of stuff, can instantly verify goodness by looking at it, but, is some potential for hidden disaster. = medium pay
- Smart contract dev: can be VERY hard to verify i.e. audit i.e. formally verify a smart contract. Often 100x easier to create a contract than to prove it safe. Extremely hard to verify, both relatively and absolutely = very expensive for actually good devs
Verification is the missing ingredient.
Can see this as a generalized and clarified version of the “markets for lemons” concept, which doesn’t make clear what’s the underlying mechanism
= Verification. Ease and effectiveness of verification.
(Value at risk is another piece directly affected by this factor, but that’s slightly more obvious of a pricing factor)
Ease & effectiveness of verifiability is the biggest major factor people miss.
Think about it:
- Graphics design: hard to do, but any random retard can nearly instantly determine if something looks good, with extremely little effort, and it’s effective in that they’re fairly right about if others will think it looks good = craters the market price, because very easy to outsource, because very easy for all to verify if good and much easier to enforce refusal to pay for garbage
- Construction worker: Semi-easy to verify how well the work is done. For lots of stuff, can instantly verify goodness by looking at it, but, is some potential for hidden disaster. = medium pay
- Smart contract dev: can be VERY hard to verify i.e. audit i.e. formally verify a smart contract. Often 100x easier to create a contract than to prove it safe. Extremely hard to verify, both relatively and absolutely = very expensive for actually good devs
Verification is the missing ingredient.
Can see this as a generalized and clarified version of the “markets for lemons” concept, which doesn’t make clear what’s the underlying mechanism
= Verification. Ease and effectiveness of verification.
(Value at risk is another piece directly affected by this factor, but that’s slightly more obvious of a pricing factor)
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NEW: Turns out that SBF (FTX) and Circle (USDC) made a deal to try to destroy Tether (USDT).
SBF amassed $10B of USDT and redeemed it in 2-3 days, in order to try to wipe out their reserves and trigger a collapse.
What happened? Tether was able to provide the money in an instant.
Turns out USDT’s refusal to do an audit, refusal to share how much they have liquid in their reserves — is exactly what saved them from this kind of attack.
Had SBF & Circle known exactly what it would cost to take out USDT, they much more easily could’ve gotten the loans to make it happen, and succeeded.
Tether’s behavior is yet another example of the biggest scams and most legit often doing many of the same things.
SBF amassed $10B of USDT and redeemed it in 2-3 days, in order to try to wipe out their reserves and trigger a collapse.
What happened? Tether was able to provide the money in an instant.
Turns out USDT’s refusal to do an audit, refusal to share how much they have liquid in their reserves — is exactly what saved them from this kind of attack.
Had SBF & Circle known exactly what it would cost to take out USDT, they much more easily could’ve gotten the loans to make it happen, and succeeded.
Tether’s behavior is yet another example of the biggest scams and most legit often doing many of the same things.
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