Why EOS is not pumping and BTC is – Fabiana Cecin
The categories are defined as thus:
- A “Coin” has no use.
- A “Token” has use.
And “Coin” cryptocurrencies like Bitcoin, Litecoin, Bitcoin Cash and Bitcoin SV usually boom while “Token” cryptocurrencies reach some level and stay there until there is news about their uses or the business model attached to their uses.
Technically, it should be the inverse: “Coins” should be worth zero, as there’s literally no “intrinsic” value to them. There’s nothing you need them for that you couldn’t accomplish with a “Token” cryptocurrency which does have business attached to them.
As a consequence of being at least *somewhat* insured, “Token” cryptocurrencies such as Ethereum and EOS should be dominating the “market cap” ladder, and Bitcoin and the like should have been dumped long ago.
In other words, if you are going to “Hodl” (invest) into a cryptocurrency, it would make absolutely no sense to assume that the one that has no business case and no functionality attached to it would be the best bet.
Thus, everyone would buy the cryptocurrencies that have use *as* currencies, and the baseline, business-insured (in an abstract, story-level way at least, not literally, legally) value of the currency would then give way to the value that emerges when millions of people decide to buy something that has a fixed supply, i.e. it shoots up like Bitcoin did.
Well, if you have paid any attention to the last five years or so, this planet is overrun by idiocy (the only explanation to the rampant inequality, cultural stupidity and mass atrocities).
Humans are stupid. The “market cap” rankings are a snapshot of human stupidity. And Bitcoin is popular for the same reason fascism is popular: there’s strength and safety in popularity, and if stupidity is popular, that’s where safety will be found.
Stupidity *is* the business case of Bitcoin. That’s why it can burn something like 0.3% of the world’s entire power supply and spend tens of billions of dollars into labor and parts for computers who run SHA256 for no reason other than to see which “miner” is destroying the planet faster.
It’s the human mind, and it’s culture; “psychology.” (I am not a psychologist, sociologist, economist, etc. I’m just a random person).
When you have a cryptocurrency that is “themed” with a business-case, then the value of the currency becomes attached to its success within that business case. Thus people are not projecting some abstract “God of Value” into that medium of exchange. A “Token” cryptocurrency is one that *sharpens* the awareness of buyers to reality, and that makes it *less* attractive for buyers. If you think, you don’t fuck.
Whereas “Bitcoin” invites people to be retards. Buy “Value Itself!!”. The “Coin” cryptocurrency is the “Hello Kitty” cat face without a mouth, that the child can then freely project happiness or sadness. You can say whatever you want Bitcoin is about in the Bitcoin forums, as long as you say it is the “king” and never question its supremacy.
All of the “advantages” of Bitcoin such as “superior security” have been debunked multiple times. It doesn’t matter.
Having your token be perceived as an “utility token” and not “a true currency” will always hurt its adoption by mindless buyers. It will only go up in value as the value of the business is perceived to be going up, and to the extent it is valued as a commercial sales engine that takes a cut of that business activity and shares it with the token holder pool. In other words, “Token” cryptocurrencies are valued as stocks, even if they are not considered stocks by token holders. The mode of valuation and purchase is that of businesses, that is, of buying shares of businesses. Stock.
That’s what Bitcoin peddlers always asserted: “Money *IS* the application.” That is, you buy the currency and you rejoice in it. You buy a share into nothingness and you are happy because everyone is buying the same share. It’s not a pyramid scheme, but a spherical scheme. A peer-to-peer scheme where everyone can be both the exploiter and the victim. A Decentralized and Democratic Ponzi scheme.
Stock/Utility cryptocurrencies tend to “pump” early on, when people are determining whether it will be accepted as “money” or not, and much, much later, if and when the “business” attached to the currency actually happens.
The “Money” or “Coin” market for cryptocurrencies is far more rewarding. Litecoin, Bitcoin SV and Bitcoin Cash, which are all low-effort clones of the Bitcoin network, are all worth more than the vast majority of “Token” cryptocurrencies which have actual companies working with actual products behind them.
I wish “Token” cryptocurrencies that are *not* destroying the planet would market themselves as money instead, and helped erase this stupid distinction, as any “Token” cryptocurrency can also act as a “Coin” cryptocurrency if you just ignore its utility. “Coin” cryptocurrencies literally add nothing other than fooling human minds with their hypnotic utility black-holes at their centers.
Or even XRP. Even XRP taking over Bitcoin would be great. At least we stop this Proof-of-Work nonsense.