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1.Extremely low entry barriers for businesses to get exposure to investors. It lowers the barrier to entry to allow any company of any size to sell a portion of
by cryptica 7y ago
1.Extremely low entry barriers for businesses to get exposure to investors. It lowers the barrier to entry to allow any company of any size to sell a portion of their business in the form of tokens. It's not easy to get a company listed on NASDAQ or NYSE (there are huge hurdles to overcome). On the other hand, any group of people can launch a cryptocurrency and collect funding.
2. Extremely low entry barriers for new investors. Some tokens representing securities, businesses, assets or commodities can be bought without signing up to any special service if the user already holds some kind of cryptocurrency (of any kind). There are now DEXs which allow tokens to be bought without any signup process necessary. Users can generate passphrases/private keys on the spot and they are never sent to any server so the funds cannot be stolen. The UI can even be web-based so users don't even need to download anything to buy the token.
3. Cryptographic ownership. This is the strongest form of ownership possible. Only the person who knows the passphrase/private key can move the tokens from their wallet. The passphrase is not stored on any server in the network; it is never transmitted over the wire to any service; even when sending tokens - so, if used properly, it's almost impossible for anyone to hack an account to steal funds (way more secure than banks); even developers who work on the project cannot steal the tokens. Nobody, no government or any entity of any kind can separate a token holders from their tokens - It's the only asset in the world which has this characteristic. Contrast this with other financial instruments where the owner is far removed from their property... How does an investor know that they actually own 10 gold bars? Because their broker told them so? Then how does the broker know that they hold 10 gold bars on the investor's behalf? Because a centralized trading platform told them so? How does the trading platform know that these gold bars actually exist and are not full of lead? Because the vault operators said so? Each layer adds risk. If you know anything about human nature and history, you know the reality is that there is probably nothing there. The gold may not actually exist and there is no way for an investor to verify this. On the other hand, deflation created as a result of token buybacks can be verified in a way which is impossible to fake; it's 100% transparent and visible on a decentralized blockchain.
If you think that #3 alone doesn't justify cryptocurrency, then you are severely underestimating humanity's capacity for collaborative deception and ignoring the reality that it's only going to get worse. The only way to solve this is through cryptographic transparency.