BRIEF EVALUATION OF BUSINESS MODELS AND USE CASES IN CRYPTO CURRENCIES

At least 90% of crypto currencies in existence today do not have viable use cases or business models adequate for meaningful long term growth.These cryptos are similar to shares of a platform with no direct reward/dividend/benefit to the initial investors.

source

A use case is said to be the utility behind a crypto currency but what good is such usability when the investors get nothing but a speculation in price due to the relevance of the platform?

Basically investors have to bag hold these coins hoping for a green future which eventually doesn't come into the picture where as the price of the coin/token takes a massive drop and boom....the project dies/almost dies.

Business models on the other hand are seen mostly in 3rd generation crypto currencies and it includes a set of incentives for investors to monetize their influence in the ecosystem.

I think this is a better incentive compared to just use cases as investors get to benefit while maintaining their positions while the team works on the project and it can overall be said to be an investment because investors are buying something that can potentially and realistically make money for them

I won't really go into the details but coins with business models have seemed to perform better than coins with use cases that also requires mass adoption which we don't even have right now to be counted as something relevant.

Disclaimer: the information provided in this post contains 100% rational though of mine which might be miserably wrong,do not take this as investment advice but feel free to learn from it or give constructive criticism.

Thanks for reading

Author : @amec