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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2/ The argument “well, ERC20 tokens can be used in decentralized smart contracts, so you don’t have to trust anyone” doesn’t fly, since most if not all of these contracts must inevitably interact with centralized solutions anyway. A.k.a. the Oracle problem.
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3/ If your token has a fixed supply, your users will always face higher liquidity & volatility risks than using BTC. Since the demand & market for sound money (which encompasses all types of services) will *always* be larger than the demand & market for any single service.
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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 …).2 replies 2 retweets 27 likesShow 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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Replying to @hugohanoi
Melik Manukyan ⚡️ ludvigart.com Retweeted Melik Manukyan ⚡️ ludvigart.com
Completely agree with you Hugo. I'd also like to add to your thoughts by sharing my own views on token economics. Here is the entire thread:https://twitter.com/realLudvigArt/status/970771942062960640 …
Melik Manukyan ⚡️ ludvigart.com added,
1 reply 0 retweets 1 like
man, we agree on so many things! are you me? am I you? 

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