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RE: Ultimate Cryptocurrency Guide - Know What You Are Buying! - Utility Coins
Being a "utility coin" and a coin "having utility" is two different things. If PornHub wants to utilize the verge coin for their payment systems, then that gives the verge coin utility, but it does not make the verge coin into a "utility coin" as far as I understand it.
Further, it seems to me that coin value is driven not by their utility, but purely by speculation. Eventually, a rumor that a coin may have utility in some future is enough to pump the price.
Semantics, the point is it will have an extremely popular use, therefore it is not unreasonable to expect it to go up like crazy once people catch on.
This is the case for a LOT of coins, almost all, but not for all of them.
The reason Steem costs what it does, is largely due to the amount of people using the site and its associated apps, if nobody used them it would be worth a few cents.
Cg
Actually, it's fully possible to use the Steem platform without buying any Steem tokens - and the Steem tokens is only valuable as long as people are willing to buy Steem tokens.
Why do people buy Steem? There are several reasons, here are some:
Which one of those do you think is the most important one? (or do you see other reasons that I don't see?)
Not true, even though the Steem you get for free when you open an account is gifted, it still costs, and is still integral to the working of the platform.
If you power down all of your Steem, your account is essentially frozen, you'll be able to log in, and browse your stuff, but no voting, posting, or commenting. The Steem gives you the bandwidth to operate.
Also If you want to get an account immediately, you pay $10 for the privilege.
The reasons you list are true, and I don't think it's about what's more important or not, the fact is there are a myriad of ways to leverage your Steem that are becoming apparent everyday.
For instance, you have the bank of @neoxian, he has decided to use his Steem to leverage a financial service.
Then you have Utopian, who use their Steem to fund open source projects. Then within Utopian you can create a funding bot to support your project's marketing efforts.
So Steem, regardless of what you think of Steemit, has a use that extends beyond a Keynesian 'circle jerk'. The fact remains, that Steem is useful beyond being a coin you hold and/or trade.
Cg