Bitcoin Forum

There is big misconception among the people about Crypto Currencies.

Not all cryptocurrencies are "currencies". Yes, some are currencies, including Bitcoin, Zcash, Dash, and others. But most are not.

Let's take this example there's a series of new technologies that effectively enables companies to tokenize what were previously called “frequent flier miles” or other types of customer engagement tools or rewards. Customers can buy or earn these rewards and then use them to get goods or services from the companies distributing them. Now we don’t call companies that issue frequent flier miles “frequent flier miles companies”. We call them airlines, and recognize that they have frequent flier miles as a feature. That’s what most cyrptocurrency/utility tokens are.

That’s what most cyrptocurrency/utility tokens are. Every day, more and more companies are tokenizing parts of their customer interaction. But that doesn’t mean their currencies. And it certainly doesn’t mean that the value of other companies that are tokenized should go down. They are simply issuing tokens for their services which you can redeem later and these token are fixed for their service.


Most people don’t understand Crypto yet, including me too. It’s dense and confusing and takes real work to understand. But problem starts when these people go to governments or to decision makers pain the whole picture in red.

_{via medium (https://medium.com/crypto-oracle/the-single-biggest-misconception-of-crypto-is-3d2625a08405)}

People turn part of their company to crypto because they want to have more money. ICO is not regulated so any team/company is able to do it.

Small companies don't have capital and time to create their own blockchain, so they use tokens, most popular one is ERC20 tokens, run on ETH blockchain.

Some cryptocurrencies are like stocks and they are not like currencies.

Yes right. But those tokens are noway to be treated as same crypto currencies.

It is because some government are banned cryptocurrency for dailly payment in a real life, thats why it is now become an asset rather than currencies itself.

Yes, All the tokens that are built on the platforms like Ethereum, NEO etc with centralised governance works like stocks in general. But stocks pay dividends and you are also representing a part of the company if you hold their shares. This is not the case with tokens because the full control will be in the hands of the team that too without regulation.