Quote:
Originally Posted by augie_
this pornhub thing has got me thinking about these cam girl sites (**********, etc) that already have a token economy.
what would happen if ********** did an ICO and decentralized their tipping token? the camgirls would have to change their prices daily due to fluctuating value and they would be annoyed when the price of the coin crashes. the camgirls become bagholders!
i don't understand how these payment tokens have any utility at all, seems like you need stable currency to do business.
They are more like a necessary evil of having value and incentives inside a decentralized system. Or rather, the price volatility is the necessary evil.
If competing, centralized alternatives are superior for every use case and every user, then there is no point to the decentralized system and token. That is the case for most utility tokens, and even when it isn't, if there is already a competitor in the space, they still have to deal with barriers of entry and the scattered leadership of their decentralized structure.
I think utility tokens in general, and in every single case I know of, are grossly over valued. And if one actually did see a lot of sustained use, outside of speculation, the price would still trend towards zero, because of how the entire system is set up. Users won't care, but speculators will eventually lose their investment.