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RE: What's In Store for 2018

in #bitcoin7 years ago

Hey! Like your videos man, I think they're very informative. Good to hear we can expect even more content the coming year. I've had a question for a while now. It doesn't really relate to the content of this video, but Im gonna ask anyway.
I don't understand why certain tokens are worth money. VeChain for example. I get that the idea of being able to store product/production line information in a blockchain is very valuable, but why is the VEN token valuable? What is the incentive to buy VEN? It's not like VEN will ever beat out a dedicated blockchain currency, as it is not it's stated goal to be a currency. Should you just see it as a sideways investment in the company behind VeChain?
Im using VeChain as an example now, but ofcourse there's loads more. SALT, Steem, Substratum, etc.. Basically any crypto that's not a dedicated currency in some way, I don't understand why that token would be worth buying, except as an investment in the company/team behind it. But that would make so many coins so ridiculously overpriced. And yes, I also feel like the entire market is already overpriced, but this would be ridiculous. Any insight would be much appreciated!

Also I can't figure out where the money from steem is coming from. As I understand it, you can upvote something you like on steem, with the steem token. Which you can buy. But what is the incentive to buy it? I mean, right now there's incentive because the whole market is crazy and people just buy because they expect things to go up, but what's the long term incentive to buy steem? I dont have to buy any steem to be able to see content.

Anyway, keep doing what you do, me and my crypto partner in crime really appreciate it!

Oh and a happy NY

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Well a lot of times the token has a utility in whatever ecosystem it is designed for so it has value. If the demand for that service increases, then the token value increases - hence why people invest. It's like instead of setting a static price for a product / service, you let it free float. If the product / service is in high demand, price will rise. That's how most tokens work.

Steem is an interesting case study. The incentive to buy Steem (and vest it) is to become a stakeholder in the platform (as the network of Steem applications grows, Steem becomes more valuable) and to gain influence on said applications. Of course, we don't know how this will work over the long-term. But it is one of the only solutions I've seen so far in an attempt to monetize social media content without ads. If abuse could be stunted, I'd be much more bullish than I currently am.

Thank you for the comment and hopefully some of my future videos clarify any further complex concepts.

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