In the last 5-8 years the idea of creating your own money around a certain use case, like coins to flush toilets has been all the rage. Tokenise it all, tokenise everything, it's a revolutionary idea.
Sadly it's not, its been tried we had free private money in centuries gone by and they all went bust one by one as they printed themselves to death. The same issue we see with fiat money today, and that's not going to change when a set amount of people have control over the issuance of a value.
This is not to hate on shitcoins, its the same with stocks, it's the same with bonds, if there is no forcing function to keep you from increasing supply, you'll increase it.
Now everyone who holds a shitcoin believes that their utility + token means wealth.
Utility can fade
Here's the thing about utility, it can fade, there was a time when Vine was the top social media app, what if they had a token, what would happen to that token now? Utility can quickly turn into futility especially in markets that ride a trend.
People think that tokenisation somehow protects you from market forces of some kind, like a forcefield, but it's not the case. All you're doing is creating an inferior product, if I have to buy lotion coin every time I need to rub some lotion on my ass, you know what I'm going to do as a sane human being?
Go to the place with less friction and buy lotion from the place that sells it to me for money. I know shitcoiners are not going to like what I have to say but tough titties.
Not liking what I have to say and ignoring reality are too differnt things
Can your coin compete with bitcoin?
If the bitcoin thesis is correct and having a money that is scarce continues to drive deflation and abundance everywhere else as you measure value through a new lense, then all other money begins to fail.
Many shitcoin proponents think their tiny walled garden with wash trading, a razor-thin float, and low liquidity profile can compete with bitcoin when they can bearly compete with each other to decide who even has a chance at the top digital asset.
The thing with these alts is that even if their thesis on a certain niche is correct, they still have to outcompete the centralised services in that sector which is pretty tough.
Let's say your token is about social media, good luck trying to break the network effects of Facebook, Twitter, TikTok, and the like, you'll get some fringe users but you're never going to make a meaningful impact. Shitcoin founders know this but they are willing to push the narrative as long as they can sell coins to this impressionable fringe audience.
Bitcoin is in a bigger league
Bitcoin is already the 8th biggest currency in the world and by far the youngest of the bunch yet it continues to onboard users and gains market share so where will it be at decade number 2?
So it's going after a far bigger market share than any of these other walled gardens can dream of reaching, it's looking to absorb monetary premium that is misallocated in a range of asset classes so the food for its growth is in high supply.
Personally I welcome every attack on bitcoin, be it from governments, companies, or shitcoins, if bitcoin can't take it, it should die. I am not here to larp about the tech, the tech needs to show it can withstand attack.
That way it will earn the right to gobble up the value sitting in inferior networks and assets.
Is it all a waste?
No, there are obviously learnings coming from shitcoin experimentation like privacy implementation, automatic market makers, but these solutions are widely overblown in their ablity to drive massive market valuations and are overhyped.
I think the best thing altcoins do is show you in real time what those trade offs do and why bitcoin should never make those mistakes.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
Let's connect
If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler and subscribe to my fanbase
| Earn Free bitcoin & shop | Earn Free Bitcoin & shop | Claim Free Bitcoin & Shop |
|---|---|---|
 |  |  |
Posted Using LeoFinance Beta