In our YouTube live stream last evening, I talked about the ‘crypto eco system’ and how it can increase the value for a particular crypto project.
I would like to expand a bit more on this. Do watch our video from last night.
We can create demand for a coin by increasing its scarcity. One of the reasons why BTC is highly priced is the nature of its short supply. There will only be a total of 21 M BTC available once mining for all BTC is completed. If everyone in the world would like to own a FULL bitcoin, we can call this DEMAND, then you can imagine that there won’t be enough bitcoin SUPPLY to make this possible. So people who have money will buy/possess full coins while others can own just a fraction. This will increase the value of the bitcoin. So people will start to save it rather than spend, hoping for a better value for tomorrow. Think about gold. This is what happened to gold back in the days. Hence, bitcoin cannot be the people’s coin for day-to-day transactions on a wide scale.
So we need other coins to conduct daily business and transactions. For this to occur, we need a wider acceptance of these alternative coins from both public and businesses: not just a sector or a business, but rather a much wider acceptance than that. That’s why creating an Ecosystem is vital here.
This is not a printable currency for anyone to easily print and request people to accept. It’s a digital currency. It needs to have a certain principle and characteristics to make it available for the wider community. To name a few,
Speed and Scalability
Database and space etc.
A project like Doge coin cannot become ‘people’s currency for the same reason mentioned above. They need to work from the backend to strengthen their system to better manage high-demand transactions. As of now, Doge can manage 10 transactions per second only. Think about paying for your shopping and waiting for your Doge payment to go through for hours. Wouldnt it take the modern world back to the stone age?
That is what Elon is trying to do with his Doge mania
So what is the alternative then?
Look around. There are thousands of cryptos making the rounds. Which one to choose from?
There are two ways of finding the ‘people’s currency’
1) If a crypto project’s objective is more to work with people and organizations on a wide scale, then those projects should be on your radar. Why? Because many people are likely to use that coin for conducting day-to-day business. Cardano is one such project. They are working with governments and universities and other entities already. Their coin will be used widely to purchase products and services within their ecosystem.
2) Companies that have projects partnered with other companies working with people on a wide scale also should be your target for example COTI. COTI aims to provide payment methods and fintech-related services to people’s projects. Do you see the big picture here?
You can read more about it on their respective websites.
That’s why I am super bullish about these two projects.
So why do I think COTI will give you more return on your investment than Cardano (in short term)?
Well, to understand that better, I suggest that you watch the attached video.
Hope you understand my stance.
I will try and write more about crypto in the coming days. But do remember these are my understanding of the situation. You may have different opinions and questions. Please do write them in the comments section