1/ Exactly. I never understood why companies cannot build so-called "tokenized services" directly on top of established tokens such as BTC (yes, BTC was the original token). The whole category of "utility tokens" just doesn't make any sense.https://twitter.com/MaxFangX/status/976031730460012545 …
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4/ If your token has a variable supply or pegged to some stablecoin, then it’s just a needless layer of indirection.
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5/ I'm a big fan of
@balajis, but I think the argument that buying tokens is akin to buying "paid API keys" to services, and therefore tokens have inherent utility is not quite correct (from https://news.earn.com/thoughts-on-tokens-436109aabcbe …).Show this thread -
6/ A private key has no value *in and of itself*. It can only have value if the thing it protects has value. In the case of company-issued tokens, that hinges on the company actually providing a service & making good on their promises.
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7/ The company can shut down their service, disappear tomorrow, and your paid API keys would amount to nothing. This can happen to Bitcoin too, but you’ll have to shut down the entire Bitcoin network- much harder to do.
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8/ So no, I don’t think ERC20 tokens are “inherently useful”.
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9/ More on token-asset linkage:https://twitter.com/hugohanoi/status/976601253634387970 …
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@hugohanoi Interesting perspective. It's kind of like frequent flyer points also, why can't they just be rewarded to us in Fiat? Instead we are stuck with that airline and can't trade it for something else. Really like your insights, keeps us thinking -
Precisely. Frequent flyer points are often marketed & disguised as benefits to the users, but all they do is making you dependable on the airline & lock value (that should have belonged to you in the 1st place) into a currency only usable within their networks.
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Correct me if I am wrong.. but doesn't BTC have a max supply of 21 million? And doesn't that equate to having a fixed supply?
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yes, I never said BTC does not have a fixed supply? the point here is if your token has a fixed supply too, it means it's not pegged to any existing currency & is subject to liquidity & volatility risks, which will always be a lot worse than BTC, which has a much larger cap.
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