From speculation to fake swords, cryptocurrency struggles for a use case
At the corner grocer in a small town, my small town, there is a slot machine that allows you to buy Bitcoin
Yet, of the hundreds of cryptocurrencies that populate your Gemini account, Bitcoin is the one with the best use case. You could buy Teslas
“Bitcoin is the leading cryptocurrency due to its brand recognition, market capitalization and daily volume,” says Jose Arnaiz, CEO of Realverse in Valencia, Spain, an augmented reality solutions company that creates charts used by boaters. “The problem with Bitcoin for the use case is that it’s not intended to support small, fast payments,” he says, adding that the Bitcoin Lightning Network could solve part of that problem. It has been under construction since 2016.
Other parts, like Lumens for the Stellar (
“Where the ripple
Ethereum (ETH) is used to pay for transactions and other fees on the Ethereum blockchain. Investors buy ETH thinking they are investing in the future of the Ethereum blockchain – more users, more fees, and more demand for ETH.
Besides blockchain-based tokens being used on specific networks, what are the use cases for these coins as they struggle in a world where central bank digital currencies threaten to blow them all up, including making them illegal, as China has done, with more or less success?
The recent explosion of the Terra Luna blockchain coin
For example, Arnaiz’s token, called Coast, is intended for use on the SeaCoast mapping platform. The only way Coast token holders can buy a boat with it is if they have exchanged Coast for fiat.
Still, Arnaiz says the token can be used to secure berth, restaurant, hotel and boat reservations.
It is unknown how many of these tokens are used to make these transactions. The company said it is working on direct payment agreements with companies that will allow their token to be used outside of the Seacoast ecosystem. These agreements would expand the range of services that their investment partners Bitnovo and OK Mobility already offer in different coastal countries. In terms of ports, they told me that their goal is for some 180 ports in Spain and Portugal, run by one of their partners, to allow docking fees in their cryptocurrency. They said they would then expand to the rest of the Mediterranean and the Caribbean.
The platform is everything. The ecosystem is everything. This is the only use case, apart from Bitcoin and a few rare examples like real estate in Dubai and Miami.
take an avalanche
Why would anyone want AVAX if they don’t use Avalanche? Because it’s an investment, and that’s it.
“The reality of today’s emerging blockchain technology is that data monetization through fiat-for-services has gone further and turned to tokenization,” says Seynat. “You buy the governance token in a specific project or ecosystem because that blockchain is growing and users want or need the token to do business there no matter what.”
Chung Dao, co-founder and CEO of Oraichain, a scalable Web3 DApps solution located in Vietnam, said many current blockchain tokens offer “little outside of their ecosystem.”
The rise of decentralized finance has given some of these new coins additional utility and value over the past couple of years by allowing users to stake and earn rewards (or produce payouts) for holding the coins. rooms.
“The rise of blockchain scaling solutions is becoming a central aspect of the DeFi ecosystem,” he said of a use case for tokens related to the blockchain project. “Several blockchain teams and communities are creating technology solutions that provide users with additional value and additional utility outside of their platform. Some platforms are becoming more interoperable, forming a network over which multiple blockchains can communicate,” said he declared, naming one called Cosmos
Other use cases, of course, are metaverse platforms.
MANA is the native token on the Decentraland (
“It’s no surprise that MANA’s primary function is to power in-game purchases, but I can suggest a few other uses for it as well,” says Rafaeul Zeitunian, co-founder and CSO of Grand Time in London. They bill Grand Time as a “gig economy marketplace” where you can get paid in their cryptocurrency (GRAND), which can be exchanged for the more liquid Polygon (
It seems, for now, that the only real use case for cryptocurrency is as a new investment vehicle. These coins have become a way to invest in tech start-ups that few investors understand or even use. But if exchanges like market leader Coinbase serve as an example, treating these tokens as “securities” — a new type of stock — is the only real use case, so far.
“Going forward, I see Bitcoin becoming more of a store of value than a means of payment,” Dao says. “I think businesses and corporations will add Bitcoin to their balance sheets rather than spending it on their expenses. The rise of the dollar could be the ideal replacement for Bitcoin as a means of payment given its stability, dollar-like structure and speed of transactions,” he said. “Across the globe, many crypto employees are slowly accepting USDT for payment. This could spill over to more traditional industries.
“Traditional finance took decades to evolve into what it is today,” says Ismail. From the high-octane, high-risk/reward era of equity and debt markets in the 1980s, 1990s and early 2000s to the dot-com meltdown, the Enron scandal and In the financial crisis of 2008, regulators took action to protect investors by setting new standards for issuers and market participants such as investment banks and brokers to follow. These standards and rules protect the traditional financial ecosystem.
“The crypto industry won’t take decades to mature, but I think it will get there faster than traditional finance,” Ismail says.
Regulators have already started defining frameworks and rules of engagement for companies and projects. It is clear that much more is needed, especially in DeFi. In the Luna debacle, there were promises of returns that no traditional securities regulator would have allowed.
“Proper regulation that protects the interests of token users and investors will ultimately be what ensures wider adoption of crypto and more real-world use cases,” Ismail says. “It’s going to be super important.”
*The author of this article owns Bitcoin, Decentraland, Lumens and Polkadot