The regulators are really buzzing around these days. Facebook took things to another level with the proposed introduction of the Libra. This even has members of the United States Congress fretting about the demise of the dollar.
Anyone in this realm knows that the big bear in the room is the SEC. This organization is going after many tokens that had ICOs. The latest is Telegram after settling with EOS. While the bigger ones can afford a fine, many of the smaller projects would be shut down.
At the core of the issue is the fact the SEC claims that those who put on ICOs were guilty of illegally selling securities. In the SEC"s eyes, tokens are securities meaning they need to go through the traditional financial system.
This is, of course, to "protect the public", at least that is what they claim.
The reality is the SEC is intent on protecting the existing system. It is really nothing more than an arm for Goldman Sachs since that entity runs the SEC. Thus, there is an uphill battle no matter what the size of the project being targeted.
One of the glimmers of hope is the fact the SEC already ruled that Bitcoin is not a security. Instead, it is a utility token. This is rather surprising since most of those holding Bitcoin are doing it for speculative purposes. However, this one currency is used for money transfer and does have some commercial uses. More places around the world are starting to accept payment in Bitcoin. This provides the utility that the SEC is looking for.
Many who are introduced to cryptocurrency ask the same question: what can you do with the currency?
In other words, where can it be spend? What can I buy with it?
This is what the general public understands. When it comes to cryptocurrency, the understanding by the people at the SEC are not much more advanced. They still think like the typical person since they cannot grasp another system except the one they were reared in.
Thus, I think it crucial for all tokens to provide that answer as soon as possible.
Enter marketplaces.
Here we see the easiest solution for both individuals and the regulators. When anyone asks what can the token be used for, it is easy to point to the online store. A retort of you can select from 500 (or whatever the number is) different products shows utility.
So far, this is one area in the cryptocurrency world that is lagging. I believe that Steemit Inc messed up by not putting a marketplace on the site in the first year or two. Even though it doesn't have the issue with the SEC since there was no ICO, it would solidify its place as a utility token.
We now have tribes that are bringing out their own token that is native to the website. Here again, each of these communities should be thinking about having an online store on their sites. Fill it with products that are applicable to to that community and rest easy.
Providing a use case for the tokens is vital. It is also a protective measure against regulators who are operating in a realm of great uncertainty. Since they do not know what they are doing, it is impossible for anyone else to have any clarity.
Sometimes the best offense is a good defense.
Taking simple actions can sometimes go a long way to altering things. Marketplaces provide outlets for token use that everyone can see and understand. It also provides a commercial aspect to the blockchain that is of interest to most people. Shopping is an enormous business and online sales only keep increasing.
Not that they care but those who accuse cryptocurrency of only being used for illegal activities would have less of an argument if there were a number of blockchains with thriving online stores.
People often wonder when mass adoption will take place. One of the criteria is going to be giving the average person a place to use the tokens. Most do not care about accumulating them. The greater percentage of the population is not into wealth building. Overall, the majority spend their money as quickly as they make it.
For cryptocurrency to be embraced, people need to see a path where it will translate into them being able to buy goods and services. If they can achieve this with tokens they earned by doing activities online, that is even better.
What is ironic in all of this is that Facebook is looking to provide utility with the Libra. Facebook has one of the largest online marketplaces and the Libra was instantly be the currency used in those transactions.
This is the essence of creating an economy in a quick period of time. Provide people with means to acquire the token and then offer a place to spend it.
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My dad asks me this every time I try to talk about crypto.
I find it very annoying because it just implies a complete lack of understanding when it comes to how fiat works. Even if you could only ever turn crypto into fiat rather than goods/services it would still have enormous value.
Yeah I hear that. It is amazing how little people know.
That is the point of the article...start where they are at. We cannot expect the general public to educate themselves about this matter. Over time, they will learn slowly but only if we sink down to their level. It is that way with all technology. Need to get it down to the understanding of the masses before it really kicks off.
Another question I get asked is "when are you withdrawing your crypto earnings?"
Now that's annoying!
Posted using Partiko Android
They want to know when you're going to start HODLing USD?
You should ask them when they are going to stop being a debt-slave :D
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