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Title: What are we effectively buying? Post by: koker on June 13, 2017, 09:44:46 AM Hello, newb here.
I've been researching altcoint trading the last couple of days and I keep wondering: What is the relationship between an altcoin and the project it is connected to? As I understand it, coins are not like stock. They do not represent a share in the projects assets and earnings. Coins seem to be simply a token of optimism, like buying a bands t-shirt at the concert. You rep the band, but you do not share in the profits of the band. Am I right or completely wrong? What are we buying when we buy an altcoin, other than just a token saying we like this particular project? Title: Re: What are we effectively buying? Post by: AmarO on June 13, 2017, 10:14:05 AM Hello, newb here. I've been researching altcoint trading the last couple of days and I keep wondering: What is the relationship between an altcoin and the project it is connected to? As I understand it, coins are not like stock. They do not represent a share in the projects assets and earnings. Coins seem to be simply a token of optimism, like buying a bands t-shirt at the concert. You rep the band, but you do not share in the profits of the band. Am I right or completely wrong? What are we buying when we buy an altcoin, other than just a token saying we like this particular project? We give the coin value. There are developers who take how much money they need while there are some that are money grabbing shills that destroy the community and the trust.. but you must filter them. If you look at history you will see centralization always results in corruption, we are supporting decentralization and this is just the start. What gives USD paper value? People give it value. What if instead of USD paper everyone started accepting Crypto? We could change the world and that's the long term outlook, right now everyone is still researching and developing to create Cryptos with world changing potential. I could write a whole essay on the history of centralization and the consequences along with the change that needs to move society forward towards equality. Find a decentralized Crypto that serves a purpose you believe in, if you and enough people support it then it will have value and that value will probably increase. Find something you believe in, most people put money just to make profit but don't understand the purpose of Crypto at its' core. Serve that purpose and you will profit while also supporting mankind in the right direction. I know Crypto has turned into a gambling game with many developers shilling it but there are still purists who see it's potential to change the world for the better. Title: Re: What are we effectively buying? Post by: BitcoinHodler on June 13, 2017, 10:56:36 AM you are actually 100% correct!
these are called coins aka crypto currencies. and they must function as a "currency" but they usually don't. which is the reason for your confusion. practically we are buying tokens and give these virtual realities some real value. and this is why they never grow big and most of them die. Title: Re: What are we effectively buying? Post by: jackychanxxx on June 13, 2017, 11:20:38 AM Hello, newb here. I've been researching altcoint trading the last couple of days and I keep wondering: What is the relationship between an altcoin and the project it is connected to? As I understand it, coins are not like stock. They do not represent a share in the projects assets and earnings. Coins seem to be simply a token of optimism, like buying a bands t-shirt at the concert. You rep the band, but you do not share in the profits of the band. Am I right or completely wrong? What are we buying when we buy an altcoin, other than just a token saying we like this particular project? I think you are referring to the ICO tokens. Technically they are not "currency" but "asset". You can see the different tags at coinmarketcap.com Title: Re: What are we effectively buying? Post by: HardFireMiner on June 13, 2017, 11:29:34 AM We give the coin value. There are developers who take how much money they need while there are some that are money grabbing shills that destroy the community and the trust.. but you must filter them. If you look at history you will see centralization always results in corruption, we are supporting decentralization and this is just the start. What gives USD paper value? People give it value. What if instead of USD paper everyone started accepting Crypto? We could change the world and that's the long term outlook, right now everyone is still researching and developing to create Cryptos with world changing potential. I could write a whole essay on the history of centralization and the consequences along with the change that needs to move society forward towards equality. Find a decentralized Crypto that serves a purpose you believe in, if you and enough people support it then it will have value and that value will probably increase. Find something you believe in, most people put money just to make profit but don't understand the purpose of Crypto at its' core. Serve that purpose and you will profit while also supporting mankind in the right direction. I know Crypto has turned into a gambling game with many developers shilling it but there are still purists who see it's potential to change the world for the better. This is the best answer I have seen about what altcoin should gain your money, or In what alcoin you should invest. Great answer, couldn't have said it any better myself. Title: Re: What are we effectively buying? Post by: aoluain on June 13, 2017, 11:42:47 AM after reading the post by AmarO im thinking "this is going to be a great thread"
I also like the OP's analogy "Coins seem to be simply a token of optimism, like buying a bands t-shirt at the concert." The way I look at "coins" or tokens is, what is the project offering? is it just a coin replicating bitcoin or does it offer a technology which may or may not actually make it into mainstream adoption. I think we are really in the crypto infancy at the moment to me there are some really promising projects in development but there are still a lot of questions to be answered too. I suppose to answer the question directly we are buying shares in blockchain technology . . . |