In the last 5-8 years the idea of creating your own money around a certain use case, like coins to flush toilets has been all the rage. Tokenise it all, tokenise everything, it's a revolutionary idea.
Sadly it's not, its been tried we had free private money in centuries gone by and they all went bust one by one as they printed themselves to death. The same issue we see with fiat money today, and that's not going to change when a set amount of people have control over the issuance of a value.
This is not to hate on shitcoins, its the same with stocks, it's the same with bonds, if there is no forcing function to keep you from increasing supply, you'll increase it.
Now everyone who holds a shitcoin believes that their utility + token means wealth.
Utility can fade
Here's the thing about utility, it can fade, there was a time when Vine was the top social media app, what if they had a token, what would happen to that token now? Utility can quickly turn into futility especially in markets that ride a trend.
People think that tokenisation somehow protects you from market forces of some kind, like a forcefield, but it's not the case. All you're doing is creating an inferior product, if I have to buy lotion coin every time I need to rub some lotion on my ass, you know what I'm going to do as a sane human being?
Go to the place with less friction and buy lotion from the place that sells it to me for money. I know shitcoiners are not going to like what I have to say but tough titties.
Not liking what I have to say and ignoring reality are too differnt things
Can your coin compete with bitcoin?
If the bitcoin thesis is correct and having a money that is scarce continues to drive deflation and abundance everywhere else as you measure value through a new lense, then all other money begins to fail.
Many shitcoin proponents think their tiny walled garden with wash trading, a razor-thin float, and low liquidity profile can compete with bitcoin when they can bearly compete with each other to decide who even has a chance at the top digital asset.
The thing with these alts is that even if their thesis on a certain niche is correct, they still have to outcompete the centralised services in that sector which is pretty tough.
Let's say your token is about social media, good luck trying to break the network effects of Facebook, Twitter, TikTok, and the like, you'll get some fringe users but you're never going to make a meaningful impact. Shitcoin founders know this but they are willing to push the narrative as long as they can sell coins to this impressionable fringe audience.
Bitcoin is in a bigger league
Bitcoin is already the 8th biggest currency in the world and by far the youngest of the bunch yet it continues to onboard users and gains market share so where will it be at decade number 2?
So it's going after a far bigger market share than any of these other walled gardens can dream of reaching, it's looking to absorb monetary premium that is misallocated in a range of asset classes so the food for its growth is in high supply.
Personally I welcome every attack on bitcoin, be it from governments, companies, or shitcoins, if bitcoin can't take it, it should die. I am not here to larp about the tech, the tech needs to show it can withstand attack.
That way it will earn the right to gobble up the value sitting in inferior networks and assets.
Is it all a waste?
No, there are obviously learnings coming from shitcoin experimentation like privacy implementation, automatic market makers, but these solutions are widely overblown in their ablity to drive massive market valuations and are overhyped.
I think the best thing altcoins do is show you in real time what those trade offs do and why bitcoin should never make those mistakes.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
Let's connect
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Dear amigo @chekohler!
Your argument is interesting!
Clearly, the East Asian world is gradually transforming into a feudal and communist economic system.
The ruling class wants to monopolize their wealth and power through speculation in cryptocurrencies, including Bitcoin.
They want to hold a lot of stable overseas assets, so they are clinging to buying cryptocurrencies.
However, they are starting to ban lower-class people like me from buying, selling and holding cryptocurrencies.
Did you know that the CCP government has banned the trading and holding of cryptocurrencies in China?
In East Asia, the ruling classes monopolize cryptocurrencies, and the subjugated class began to ban the holding of cryptocurrencies.
So, I wonder how cryptocurrencies will change and create the present and future of East Asia!
How do you think cryptocurrency will change the world?
You literally rehash the same talking points in every comment and it's really starting to get on my nerves, seriously stop it. I'm not going to entertain your repurposed generic bullshit questions any longer geez fuck
Dear @chekohler!
I want you to understand first that my English is at the level of elementary school students in America!
I apologize if my awkward English offended you!
I just wanted to ask you a question about how cryptocurrencies can change the structure and flow of the world's politics and economy!
I will not ask questions that may offend you in the future!😂
Jessie here, checking in!
Your own path and experience have modeled your way of thinking in the current moment of your life. The emergence of blockchain, NFTs, DeFi, Bitcoin, and many more will have their success and failure.
I'm a Jessie's gal holding Bitcoin along with a colorful collection of shitty altcoin just for the hell of it.
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