Interpreting Crypto Banks: Wealth Remains on-chain, No Need to Go Off-chain for SpendingAuthor: Chilla
Compiled by: Block unicorn
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Introduction
There is a principle of mental accounting in behavioral economics. People's attitudes towards money can vary depending on where it is stored. One hundred dollars in a checking account feels freely disposable, while one hundred dollars in a retirement account feels untouchable. Although money itself is interchangeable, its storage location can affect your perception of it.
Frax founder Sam Kazemian refers to this as the "Net Worth Theory." People tend to put their spare change where most of their wealth already exists.
WuSaidBlockchainW·36m ago