Why GAS will become the common currency of all dApps

in #neo7 years ago

I don't think the market would realize the significance of GAS until mid this year. The Q&A of NEX today revealed something significant to which many people don't pay attention.

1- In the Q&A it was said that NEX is not just a Decentralized Exchange it is also a DEX API that means if one person wants to use a dapp and does not want to buy its token he can use the API as a gateway to pay with NEO or GAS just like how you pay with credit card at a website and the DEX will exchange it immediately to the dapp's tokens right away to be spent on the dapp. This is exactly the same as when you want to travel to different countries and you use your US issued credit card to pay at any country so you don't need to carry with you 50 different currencies as the exchange of USD to X currency will happen right away. Imagine you want to use Redpulse platform and you have to pay 100 RPX for buying a report (around USD 28) but you don't want to go through the hassle of going to the exchanges and buy PRX and etc. You have fiat, NEO and GAS. So you go to the Redpulse website and there is a NEX API gateway in which you can pay with NEO or GAS equal to 100 PRX (meaning you pay with NEO or GAS that is exchanged right away to exactly 100 PRX) so now your best option and only option between NEO and GAS is GAS! because NEO is not divisible the minimum amount of NEO you can spend in decentralized exchange is 1 NEO (USD 150) but as GAS is divisible you can exactly spend the right amount of GAS for example you can spend 1.785714 which will be exchanged to exact amount of RPX tokens you need (200 RPX) to be spent on Redpulse platform. Do you know the meaning of this? This basically means GAS not only is the currency of NEO platform to deploy smart contracts, but also GAS will become the common currency of all and every single NEP5 token based dapps by mid year 2018 and also ERC20 token based dapps by end of 2018! This means GAS will become even more liquid than NEO! This means you don't need to own 100 different tokens in your wallet and only by holding GAS and NEX you can spend your currency on all and every single dapp on blockchain as long as those dapps include the API payment feature of NEX.

2-Another interesting fact about the Q&A today was the fact that GAS will also be accepted (as well as NEO) for the NEX ICO. There is a USD 1,000 cap per person for the first day of ICO. A few hours before ICO they will set the NEO/NEX and GAS/NEX conversion rate with NEX being 1 USD and also based on 10 days average price of NEO and GAS. Do you know the meaning of this? That means if you participate with NEO, it is mathematically impossible you get exactly 1000 USD worth of NEO. unless each NEO is USD 100.00 so you invest 10 NEO it will be USD 1000. If NEO is USD 140 for instance you can max invest 7 NEO which make it to USD 980 and you get 980 NEX tokens (you miss the opportunity to get extra 20 NEX tokens) because 8 NEO will be over your USD 1000 personal cap. On the other hand no matter the price of GAS is, you can EXACTLY spend USD 1000 worth of GAS so that means it would be much more advantageous to participate in the ICO (at least in the first first round) with GAS! Everyone sooner or later will realize this and want to fill its USD 1000 cap to the fullest (and get exactly 1000 NEX tokens) they will stock up GAS. This will be just a start for other ICOs as other ICOs will end up using GAS as payment when NEO price get too expensive and make it impossible for retail investors to invest small amount of money in the ICO while GAS can be used at any fraction by any retail investor for any possible cap.
My speculation is that we will see in mid 2018 that the trading volume of GAS will be much higher than NEO on NEX as there will be significant usage for GAS just because of the two important points I raised above!The GAS is grossly undervalued compared to NEO now as I showed in a detailed analysis before that 1 GAS should be valued at least to 2 NEO.

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