It doesn't cost much of anything to move it around actually.
And it only fluctuates due to the paper markets, which shows the paper markets are the ones that's actually volatile.
I am currently invested in the project Revolution Populi (RVP).
RVP has a maximum circulating supply of 2,000,000,000 tokens.
The utility of RVP is two fold.
First: The team wants to built a decentralized app store for hosting applications that will require user data input. The foremost app they wish to design for this platform is a new social media site. Normally, when you hand over your data to a social media company like Facebook, the owner of that company has full control over what happens with your data. They can use your data to target advertisements at you, or they can sell it to the highest bidder. One utility purpose of the RVP token in the blockchain will be to require third party advertisers to pay users with RVP for access to their data, and only at the approval of each individual user. Rather than Zuckerbot getting all advertisement revenue, as is the case with Facebook, that revenue goes to the user via the crypto token RVP.
A second utility of the RVP token will be in the transactions executed on their clearing house. Whenever an institution wants to use the services of their clearing house, they will first have to pay the gas tax in RVP in order to convert their Fiat to Crypto, the profits of which will go to the proof of stake node runners who operate the blockchain. This clearinghouse will directly finance the continued support of the decentralized app store.
This is only one example of how a blockchain can produce utility with a cryptocurrency. It is the only example I feel I am knowledgeable enough to give a writeup about, but there are many other projects out there with excellent utility and use cases for their tokens.
I didn't say that crypto couldn't have any possible uses. I think our entire stock market and economy will be using them in the future. I asked about Bitcoin and the other assets that have value solely because people believe they do. Is there some property of Bitcoin that can make any of those utilities better than some other crypto?
For instance, RVP is worth a dime (or whatever its at atm). Is Bitcoin 600,000 times better at those things than RVP as the value difference suggests?
I would say from my limited experience that Bitcoin lacks a lot of the utility aspects that newer projects have. Bitcoin was able to get away with having very limited utility simply because it was the very first token in the market, and so enjoyed the benefits of being first to the party.
I don't foresee Bitcoin diminishing in the near future due to its massive presence in the market. Coins can do extremely well based solely upon hype. Coins like Shiba honestly shouldn't be worth anything, and yet they are because people decided that they should be.
I think you've struck on a very important dynamic of the crypto market. The fact of the matter is that crypto is just... different. It doesn't always make sense, and sometimes it can be clearly based around ponzi schemes, gambling, and casino antics. My own thought process is that while the crypto market can certainly attract the gambler personalities to the table, so too can the fiat stock exchanges as well. For every hundred projects that fuel themselves on hype, there is a gem with real utility that will outlast all the hype coins.
I think the majority of the hype coins, including Bitcoin, will eventually become extinct as utility based coins grow in popularity. You have to realize that the crypto market is still in its infancy. It has only been around for a little over a decade, and is rapidly morphing and evolving into something that I think nobody can really predict.
One thing is for sure... our grandchildren will be learning about this time in financial history in their High School economics classes one day.
It's not backed by "faith." It's backed by it's utility.
This is an excellent perspective. Very accurate.
Whats the utility of bitcoin? Costs a ton just to move it around and fluctuates like crazy. Most places dont even accept it.
It doesn't cost much of anything to move it around actually. And it only fluctuates due to the paper markets, which shows the paper markets are the ones that's actually volatile.
I dont think you understand how bitcoin works.
I've traded and mined Bitcoin. It's not that expensive.
What utility? How can it be used to produce something? What does it make?
I'll give you an example.
I am currently invested in the project Revolution Populi (RVP).
RVP has a maximum circulating supply of 2,000,000,000 tokens.
The utility of RVP is two fold.
First: The team wants to built a decentralized app store for hosting applications that will require user data input. The foremost app they wish to design for this platform is a new social media site. Normally, when you hand over your data to a social media company like Facebook, the owner of that company has full control over what happens with your data. They can use your data to target advertisements at you, or they can sell it to the highest bidder. One utility purpose of the RVP token in the blockchain will be to require third party advertisers to pay users with RVP for access to their data, and only at the approval of each individual user. Rather than Zuckerbot getting all advertisement revenue, as is the case with Facebook, that revenue goes to the user via the crypto token RVP.
A second utility of the RVP token will be in the transactions executed on their clearing house. Whenever an institution wants to use the services of their clearing house, they will first have to pay the gas tax in RVP in order to convert their Fiat to Crypto, the profits of which will go to the proof of stake node runners who operate the blockchain. This clearinghouse will directly finance the continued support of the decentralized app store.
This is only one example of how a blockchain can produce utility with a cryptocurrency. It is the only example I feel I am knowledgeable enough to give a writeup about, but there are many other projects out there with excellent utility and use cases for their tokens.
I didn't say that crypto couldn't have any possible uses. I think our entire stock market and economy will be using them in the future. I asked about Bitcoin and the other assets that have value solely because people believe they do. Is there some property of Bitcoin that can make any of those utilities better than some other crypto?
For instance, RVP is worth a dime (or whatever its at atm). Is Bitcoin 600,000 times better at those things than RVP as the value difference suggests?
This is an excellent discussion to have.
I would say from my limited experience that Bitcoin lacks a lot of the utility aspects that newer projects have. Bitcoin was able to get away with having very limited utility simply because it was the very first token in the market, and so enjoyed the benefits of being first to the party.
I don't foresee Bitcoin diminishing in the near future due to its massive presence in the market. Coins can do extremely well based solely upon hype. Coins like Shiba honestly shouldn't be worth anything, and yet they are because people decided that they should be.
I think you've struck on a very important dynamic of the crypto market. The fact of the matter is that crypto is just... different. It doesn't always make sense, and sometimes it can be clearly based around ponzi schemes, gambling, and casino antics. My own thought process is that while the crypto market can certainly attract the gambler personalities to the table, so too can the fiat stock exchanges as well. For every hundred projects that fuel themselves on hype, there is a gem with real utility that will outlast all the hype coins.
I think the majority of the hype coins, including Bitcoin, will eventually become extinct as utility based coins grow in popularity. You have to realize that the crypto market is still in its infancy. It has only been around for a little over a decade, and is rapidly morphing and evolving into something that I think nobody can really predict.
One thing is for sure... our grandchildren will be learning about this time in financial history in their High School economics classes one day.