It is oft said that the killer app for cryptocurrency, specifically Ethereum, is "fundraising." Does this "killer app" strength of the underlying Ethereum platform hold within it the key to the devaluation of the ETH currency?
Think about the order of events:
1. Developer / business team think of innovative coin, called NewCoin (or some such)
2. A smart contract resembling an ICO is written to exchange NewCoin for ETH at a rate of 4000:1
3. Speculators send in ETH like mad due to FOMO
4. Developer / business team collect ETH
5. Depending upon the sophistication of the internal treasury operation of the Developer / business team, ETH is liquidated in a careful or reckless manner, converting it to fiat in order to either pay developers or exit scam
Thus, what creates the escalating value for ETH? What is the backstop for ETH?
How is ETH different than a gift card that is subsequently used to buy something of perceived value at a store, and in THAT store only?
Finally, I'll say that I have tremendous respect for Vitalik & team and wish him only the very best; though, I am wondering how these economic mechanisms will come into play during the long run.
Topic: A reason to be bearish on ETH? (Read 115 times)
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