DeepOnion's Value

in #deeponion7 years ago

Clipboard Image (3 February 2018).png

The core of DeepOnion (its "value") is that it's able to completely obscure any of the "metadata" attached to a transaction carried out on the "Bitcoin" (or at least "crypto") network. This metadata would typically hold such information as IP address, Bitcoin address or similar - allowing people to identify who you are and what you were doing (if necessary).

By obscuring this data, DeepOnion (in a somewhat similar way to Verge) is able to block the tracking ability for each transaction - allowing users to perform them with relative impunity. This is the technical value of the system. It delivers it through the TOR network (which generally obscures it all), and then allows you to store the transactions on DeepOnion's "blockchain" system.

The point here is that while this might seem "valuable" - in a purely end-user sense, it is not; it's this discrepancy which could cause a large number of people to lose money with DeepOnion, as they invariably have with the likes of Verge.
The "price" of an asset is only really as strong as the return it provides to people in an economic sense. For example, Bitcoin works well as an "investment" because it's actually being used quite readily by the majority of end-users. They actually want to send transactions to other people, and end up buying BTC to do that.

The "alt coins" (of which "DeepOnion" is very much one) don't do this. Because they don't give end-users any real way to actually utilize their technology, their economic value is tired almost directly to Bitcoin. In other words, the only way in which DeepOnion is going to be able to provide a return on any investment into it is by way of providing users with the ability to actively interact with it directly. If this doesn't happen, the "coin" will be a "bad" investment.

More specifically, if you imagine how the "crypto" market works at present, the majority of "new money" coming into it is driven through Bitcoin (as we've established). The typical use-case for the various "alt" coins is that people were looking for particular features those coins would provide - such as anonymity for example.

To this end, the "DeepOnion" coin (in its current form) is never going to be worth anywhere near what Bitcoin is. It's constantly going to be in the shadow of BTC - simply because it's focused on being a "cryptocurrency" (when it has more potential than that).

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