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Maybe, but tulips still cost something these days. I think the same will apply to tokens. They will always be worth something so long as banks keep charging tr
by jondubois 9y ago
Maybe, but tulips still cost something these days.
I think the same will apply to tokens. They will always be worth something so long as banks keep charging transaction fees for moving money around and so long as a reliable network exits to support the token.
Even if you assume that nobody wanted to hold Bitcoin for longer than a few minutes (long enough to complete a transaction), it would still have value because it saves people lot of money on international transactions.
The total amount of money saved would be reflected in the price of the token based on the real-time supply and demand in any given minute interval.
The intrinsic value of a token is the total amount of money that it saves people from having to pay to bank fees for moving money around (with token price fluctuation risk factored in).
- cm2187 9y agoActually you can't create an unlimited of tulip. I can create an unlimited number of block chains.
- jondubois 9y agoMaybe, but you can't create an unlimited amount of computers. That's why ICOs are valuable; they add transaction processing capacity to the overall network (which encompasses all cryptocurrencies) or at least shift transaction processing capacity away from Bitcoin (E.g. when bitcoin miners are re-purposed to mine other more efficient Altcoins). The limited supply of tokens doesn't matter. The real underlying value is driven by the limited supply of machines which process token transactions. If all machines and all consumer attention suddenly shifted to a different Altcoin, then Bitcoin's value would drop to zero and that other coin's value would skyrocket.