Thanks for sharing some of your nice ideas and thoughts here. I love all the key points you are listing here and indeed these are the elements and factors that a good cryptocurrency should be aiming for and the things we should be looking for when we plan to invest in a coin or token.
As for myself, I also made so many mistakes when investing in some ICOs because some of them turned out to be big non-explosive bombs. Anyway, I think the most important thing to happen to a coin is the acceptance of the market or a niche of a market where there is a strong community support and loyal traders playing with the coin/token on a regular basis.
Topic: Attorney Bitcoin on Utility of Coin and Tokens (Read 519 times)
Let me start by listing some elements of a successful coin or token. This list was put together by myself, a developer and an owner of a mining pool.
The list is not intended to be comprehensive and I welcome readers input.
Key elements of a successful cypto-currency:
1. Market Cap: While obviously important this is only reflective of how much money is invested into the coin; some from venture funds but more likely the majority from individuals who hope the coin will actually flourish and make them money. Most of those who buy/invest in any given coin are not likely to be sophisticated in what will make a coin flourish and last.
2. It Does Something Useful or Unique: Such as lend computing power for scientific or mathematical research, like CURE Coin; provides a unique platform for business such as Smart Contracts like Etherium; increases public acceptance and confidence; has uses in a particular industry such as online action/strategy games, adult audience, such as Gamecredits or Sex Coin; acts in a more anonymous fashion or acts in a fashion that is compliant with AML, KYC; it is a collectible item much like baseball cards or art; it targets a particular market or markets; it has a unique identity.
3. It Works: It works better than predecessor coins, it works quickly, efficiently, cleanly, securely and is highly resistant to hacking.
4. It has POS Staking/Inflation Balance or Effective POW Mining Access: If inflation is too high a coin becomes untenable for the long term. If it is too difficult to mine, then users lose interest. Interest paid via staking should be attractive and reward loyalty.
5. It has Several Sophisticated Developers: Ethical programmers and business persons, who remain involved with the coin for an extended period of time.
6. It has an Active Community: Investors who support, invest in, contribute to and believe in the coin as viable.
7. It has General Utility: It gains public acceptance and is used and accepted increasingly for various value transactions.
My focus here is on what I consider to be the most important functions, general and specific utility. Now, the underlying coin must work, must be viable, secure, well funded, inflation protected, protect against the 51% dilemma, work better than other coins or do something unique as well. These are key elements to the solid foundation. But in my opinion, if a coin is only collectible, or only anonymous, or only pays steady interest, or is only super secure or is only super fast, it does not meet the societal demands of long term success and contribution toward a better society.
There are those who disagree with me on this point and that is fine. But it is my opinion that general or specific utility are the key elements that make the complete package and bring about improvements to society as well as short and long term gains to investors.
What does it DO? Does it lend computing power for scientific research? Create a better way of tracking financial transactions or record keeping? Create a better way for parties to contract? Create a rapid, low cost and secure way for peer to peer transactions? Provide a platform for marketing or socializing? Create a better way for artists, musicians and writers to create or market their products? Allow for a low cost way of remittance between countries? Provide an alternate and lower cost way of trading securities or commodities?
These things, which have been or are being done through crypto, are groundbreaking and remarkable. They are changing our lives in ways we do not even understand or see yet.
UTILITY IS KEY.
George D. Greenberg, Esq.
www.attorneybitcoin.com
The list is not intended to be comprehensive and I welcome readers input.
Key elements of a successful cypto-currency:
1. Market Cap: While obviously important this is only reflective of how much money is invested into the coin; some from venture funds but more likely the majority from individuals who hope the coin will actually flourish and make them money. Most of those who buy/invest in any given coin are not likely to be sophisticated in what will make a coin flourish and last.
2. It Does Something Useful or Unique: Such as lend computing power for scientific or mathematical research, like CURE Coin; provides a unique platform for business such as Smart Contracts like Etherium; increases public acceptance and confidence; has uses in a particular industry such as online action/strategy games, adult audience, such as Gamecredits or Sex Coin; acts in a more anonymous fashion or acts in a fashion that is compliant with AML, KYC; it is a collectible item much like baseball cards or art; it targets a particular market or markets; it has a unique identity.
3. It Works: It works better than predecessor coins, it works quickly, efficiently, cleanly, securely and is highly resistant to hacking.
4. It has POS Staking/Inflation Balance or Effective POW Mining Access: If inflation is too high a coin becomes untenable for the long term. If it is too difficult to mine, then users lose interest. Interest paid via staking should be attractive and reward loyalty.
5. It has Several Sophisticated Developers: Ethical programmers and business persons, who remain involved with the coin for an extended period of time.
6. It has an Active Community: Investors who support, invest in, contribute to and believe in the coin as viable.
7. It has General Utility: It gains public acceptance and is used and accepted increasingly for various value transactions.
My focus here is on what I consider to be the most important functions, general and specific utility. Now, the underlying coin must work, must be viable, secure, well funded, inflation protected, protect against the 51% dilemma, work better than other coins or do something unique as well. These are key elements to the solid foundation. But in my opinion, if a coin is only collectible, or only anonymous, or only pays steady interest, or is only super secure or is only super fast, it does not meet the societal demands of long term success and contribution toward a better society.
There are those who disagree with me on this point and that is fine. But it is my opinion that general or specific utility are the key elements that make the complete package and bring about improvements to society as well as short and long term gains to investors.
What does it DO? Does it lend computing power for scientific research? Create a better way of tracking financial transactions or record keeping? Create a better way for parties to contract? Create a rapid, low cost and secure way for peer to peer transactions? Provide a platform for marketing or socializing? Create a better way for artists, musicians and writers to create or market their products? Allow for a low cost way of remittance between countries? Provide an alternate and lower cost way of trading securities or commodities?
These things, which have been or are being done through crypto, are groundbreaking and remarkable. They are changing our lives in ways we do not even understand or see yet.
UTILITY IS KEY.
George D. Greenberg, Esq.
www.attorneybitcoin.com
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