We see a lot of FUD regarding cryptocurrency. Many point out hot it is a scam and nothing worthwhile is associated with it. This is all nonsense.
To start, most who are saying this have a vested interest in the present system. In fact, they are doing very well with how things are. Obviously a disruption like cryptocurrency could upset their apple cart. Technology has that effect. For many, it is financial beneficial while others are devastated.
Cryptocurrency is the Internet coming to music on steroids. We saw what it did to that industry. The main difference is money affects almost everyone.
We know there are a lot of buzzwords. Most outside cryptocurrency do not understand what they all mean. We have our own language forming, which is commonplace among industries.
Once moving past this, we can see, in simple ways, how cryptocurrency is going to change everything.
In this article we will cover two major areas where this is revolutionary.
Social Level
Every organization has a social level.
This can be summed up in terms such as users or customers. Businesses have their ardent fans. Some have a strong connection to their customers like Disney and Tesla. Others it isn't as evident although people do prefer that company over its competitors.
We also have employees along with other stakeholders in companies. They might be direct which makes it easy to overlook them. Nevertheless, they do have an interest in the success of an entity.
With companies, there are two forms of ownership: equity and debt.
One can opt to invest in the corporation if it is publicly traded. For private concerns, there might be a placement that one could get into. Either way, having an ownership stake in a company is how one can financially benefit.
Another layer that corporations have is their debt. This is a liability to them but an asset to anyone buying it. Essentially the bond holders are providing a loan to the company. Owning the loan is a financial move that provides a steady return.
Outside of this, there is not much else. Tokenization changes everything by monetization the social layer. Anyone who has a vested interest can invest or accumulate the tokens. Over time, depending upon the development, this could rival the value of the stock.
Here we see how users can be rewarded for their activity. Tokens can be distributed based upon providing the ecosystem what things it needs. In the digital realm, this includes infrastructure.
Promotion of the concern can now be monetized. Word-of-mouth advertising is the best form. With a token, instead of taking from the marketing budget, a concern can simply use the token distribution in a bounty program. The same can be done with referrals.
The point is we are capturing a layer of value that is presently there, but unaccounted for. Companies will have more options to try to incentivize people to spend money with them.
Digital Assets Incorporated
Another area where cryptocurrency has legitimate use case is where digital assets are incorporated as part of the platform.
Maybe the best example of this is with video games.
Developers are able to integrate non-fungible tokens (NFT) into their games, as a way of providing assets that are pertinent to the playing of the game. These are owned by the individual, helping to spur the network effect as activity grows.
A NFT could apply to land, a weapon, a game piece, or a get out of jail free card. Whatever is happening in the game, these tokens can be applied.
One of the keys is the motivation of the individuals. Unlike the overwhelming majority who simply engage in speculation, this situation see actually use case. Players might want the price of the assets to increase. However, their primary motivation is the game. Hard core players will want to enhance their abilities.
This is where cryptocurrency enters.
Many are overlooking this simple concept. Tokenization is nothing new, especially within the gaming industry. It utilized virtual assets for decades. The only difference is they were housed within the game. Close that down, assets were gone.
With blockchain and digital wallets, users are able to own their assets. It is also a way to generate monetary value for the players as they could start garnering a return based upon their activity.
Technological Transformation
The Internet went from Web 1.0 to, now, Web 3.0.
Transition of this nature is usually only evident in hindsight. We also have to realize this transformation will unfold in ways we cannot forecast.
Innovation takes us down roads previously unthought and the market embraces things in ways unforeseen.
Gaming and the social layer to corporations are two evident areas where cryptocurrency is going to excel. How this looks exactly is impossible to predict. The Internet was design with the thought of sharing serious information, both military and academic. When we look at the content on social media, we can see how far we strayed from this vision.
Cryptocurrency is overrun by speculators who only grasp the financial aspect. Much of what we see is tied to a blockchain or project. These coins (or tokens) are designed to reflect the value of what is being generated. As these entities grow, the value will move according. Of course, markets will always approach price in an insane manner.
This is going to change as development keeps taking place. We are seeing digital assets incorporated into more platforms and games that are rolled out. Again, this is nothing new especially for the latter.
Cryptocurrency is not a passing fad or something that is a scam. This is nothing more than a technological transformation in the digital world. The response is common since change is still something humanity does not deal with very well.
In the end, disruption causes some to lose and they do not like that. Hence, they rebel against the change, trying to stop it.
This is an approach that, throughout history, was shown to fail. It will be no different with cryptocurrency.
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Posted Using LeoFinance Alpha
