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RE: The Traditional Stock Market is Redundant
The problem with ERC-20 tokens completely replacing stocks is that not every project need a token. What you are seeing right now is people forcing tokens where they are not necessary simply because they want to profit from the ICO craze.
Also, when you buy an ERC-20 you are investing only on the part of the company that is using the ERC-20 token. In a stock, you invest in all the projects of the company.
Stock is equity in a company, one that potentially has positive cashflow. There are rights for holders of stocks and bonds. Stock ownership is actually the original proof of stake, you can make big changes if you're the majority shareholder, lol.
Yes, many ICOs and coins are scams, there are way too many vaporware projects led by scammers.
The biggest hurdle for all existing coins is maintaining value and keeping the interest of the public and other companies even when the technology has matured and other corporations can just copy-paste the parts of the chains they want to use internally to save money.
Thanks.
I am not saying all ERC20 tokens are shares. Fair from it. But all shares could be ERC20 tokens if companies migrated their share registries.
True, most any equities type thing could be tokenized, but I think it would take a while before it's user-friendly enough to even be approached as such.