Biggest Elephant In The Room With Cryptocurrencies That Nobody Wants To Talk About

From day to day all the optimists here seem to completely ignore the elephant in the room. They keep talking about 'increased' adoption, about how vechain or IOTA or Stellar, whatever keeps gaining partnerships after partnerships. But, they seem to forget the basic principles of economy. Let's talk about it right here right nowSo, cryptocurrency is called 'currency' for a reason. because it provides economic value. For a currency to rise in value (outside speculative perspective) it needs to have a real demand. But the problem with crypto optimists is that they like to mix demand for blockchain or DLT (distributed ledger technology) WITH demand for cryptocurrency. Unfortunately, the two are not the same although I admit they can be indirectly connectedTake a look at all IOTA partnerships with big corporations. None of them require IOTA token. all these corporations are not required to hodl or spend IOTA token in order to use the tangle. so, what drives the demand for IOTA token? nothing. just speculation. you just speculate that one day people/machines will utilize the token inside the tangle. there's no real demand here. compare it with USD where majority of people in the United States use USD to buy homes, to pay debts, to pay employees salaries, etc. Those things are real use cases. Again, use cases for the Tangle are not the same with use cases for IOTA tokenThe same can be said about any cryptocurrency out there. "Oh, I heard these banks are using ethereum blockchain to settle $xx billion" but them using ethereum blockchain does not mean they had to buy large amount of ETH. you only need 0.001 ETH to make 1 single erc20 transaction. that's actually a very bad business model for ethereum foundation as they need to constantly dump ETH on the market to fund development while their own ETH's use case is just to pay for smart contract gas fees.Crypto fanatics need to go back to drawing board and ask themselves "what is exactly the use case of this cryptocurrency?" and stop mixing blockchain and cryptocurrency because they are not one and the same. corporations utilizing blockchain A or blockchain B does not mean they will drive the demand for the native token associated with those blockchains.

Submitted January 29, 2019 at 10:26AM