Bitcoin Forum

If Ethereum is a utility platform and the value of its coin rises, how can it continue to be used as a utility when its used as a store of value?
Most people that buy Ethereum aren't using it, they're trading.

Any cryptocurrency or token can be used as a store of value and utility token at the same time, actually. And in a normal market, there will always be differences on how we are using cryptocurrency. The reality is that in today's cryptocurrency dynamics, people are more often than not using cryptocurrency as a store of value or as a tool of investment rather than the other way around. There is the question if cryptocurrency can be more valuable and can have greater market if they are used in our everyday lives and I think that this can be true and for that to happen there must be a good and reliable infrastructure that anyone can use. Anyway, the cryptocurrency story is still relatively young and it is actually just developing soon a time when come when it can be more mature a different picture can then be emerging as to its use and function.

What you say about Ethereum applys to all other coins to an even greater degree. 94% of the ICO's conducted in the last year were done on the Ethereum Platform. Of all the coins it has a stronger case of real world use than any other Coin, even Bitcoin. A lot of other coins claim to be technically better but none of them have a proven use case better than Ethereum. Ethereum remains the base currency for all those that invest in the development of Blockchain.

You can try to create an asset use ethereum, There are some people are using ethereum to playing the dapps game in the platform. So, have you ever seen the bitcoin will be used or offer the utility usage to the token holders? Crypto is about a speculation and then i think that it looks very similar.

I don't quite follow. Maybe I can clarify, please bare with me as I start from what we can agree on--
Bitcoin is a store of value. People use Maslow's Hierarchy to justify the tulip bubble theory, which is fine, it is speculative and the users drive the price. But Bitcoin doesn't have smart contracts, no? And it was meant as for peer-to-peer transactions, but with no utility other than that I believe.

Ethereum on the otherhand is a utility platform and meant to build DAPPs, people use Solidity to build with Ethereum. So it has a use. So I suppose my point would be I find it kind of backwards when a utility coin is treated as a store of value, it defeats the purpose a tad and slows down innovation. And yes, most ICOs create utility coins as a store of value, but I'm trying to find the value of that concept is what I'm driving at. If there was a fixed/ stable value for Ethereum or any platform can that be more beneficial?

If the value of the coin rises (along with its transaction fees), than it makes no sense to be used as a utility coin. It will become a store of value, similarly to what bitcoin is destined to be.

Bitcoin has no on-chain smart contracts due to security reasons, but it has off-chain solutions for that.


I don't think Ethereum can ever become a store of value in the sense Bitcoin is. Ethereum is a crypto-asset designed to fuel the ETH platform, and given the current situation with these ICOs, it would have to struggle in the future to maintain its value even where it is now.

I think you can use all cryptocurrency for both trading purpose and utility. Many investors are using ethereum for utility by participating on gaming platforms. Hope this helps.

I agree.

At present, the block chain and ETH ecology are developing.
If the throughput of ETH improves substantially, then I think ETH will be the best project.

Ethereum is a very great coin which serves as a store of other value coins, which is really a great idea. That's why I prefer Ethereum over Bitcoin because bitcoin does not have on-chain smart contracts, which may be due to security reasons. Ethereum still remains my best coin above all other coins.

That's the magic of cryptocurrency, it's like buying a stock you could use whatever it may save you. The fact that all of the coins are being used as utility and getting high store value because of it's demand and fix supply, maybe there is nothing wrong with that. Hence, it is one of the best use cases of blockchain.

They are doing it both. The only limitations would be the transaction speed and fees. When Ethereum achieves both high speed and low fees, it can be parallely used as a utility as well as trading coin.

it fuels the transaction which makes it a utility but since most of us wants to profit due to its high demand traders are buying ETH to earn. its both. you can store your wealth on it and you can use eth if you are sending tokens to elsewhere. this is why ether is a good investment as over time you profit.

This is the current problem, most of the time people only use ETH for transactions.
So they don't really want to use ETH. >:(

i agree, nowadays etherium mostly used for making invest like hold them, or used them for buying some ico sale and for gas wallet, but i think etherium more usefull rather than bitcoin.

I think you should widen your scope on ethereum, trading and using are the same thing as long as you trade if you are using it's fee it's private key and anything associated with it, there are already companies using Ethereum don't know where you get that idea.

Today, the chain of blocks and projects based on Ethereum are growing.
Although the current price of Ethereum is falling, but still many people believe if Ethereum will rise again when the market recovers. If Ethereum throughput increases substantially, then I think Ethereum will be the best project, and impact on Ethereum price increase.

I actually beg to differ, people buying Ethereum are probably using it for decentralized applications that are already being run on the ETH blockchain.

Going back to your topic, Ethereum can also be used as a good store of value because all indicators point to it's value going nowhere but upwards. There is only innovation and enhancement ahead of the Ethereum blockchain and there is very little chance that some obscure little bug would be found in the code or some other catastrophe because of the sheer number of people constantly auditing the Ethereum blockchain and it's protocols.

It is used in the operation of ethereum blockchain. Just more than that the exact concept of etherum is smartcontract. Operate smartcontract needs eth. This means that the demand of eth will be sustainable. Also, people favor bitcoin in purpose of store of value

Considering Ethereum is the top 3rd trading pair next to USD and BTC, I would say it's a great storage of value coin. Long-term at least. Maybe not in the short run

Well since bitcoin is there, most people will continue to use bitcoin as a store of value like gold and basically that's why bitcoin has that much dominance.

No, you are definitely wrong. People usually use Ethereum rather than Bitcoin. That's why ETH blockchain are currently overloaded with many transactions. While Bitcoin is mostly just bought by people for trading instead of using it.

Ethereum is a strong coin and it can be used to buy another one. Even though it is can be store as an utility coin but as its value keep rising then people would like to use it to trade.

There's nowhere mentioned that Ethereum should be used as a utility coin only, it is a decentralized currency and a person is free to use it as he sees right. The store of value is just a byproduct of hodling the coin. If you don't want the increase in price than you can just burn your token.

The value attached to ETH. Is just enough to make it act as a store of value,. It's the second most valuable coin and can can comfortably be used to store wealth as it's just as effective. As much as every crypto can be used to  as a storage of value,, ETH, is one of the best there is and the fact that it's considerably stable hence reducing the chances of losing value

Ethereum is first of all a cryptocurrency and you should not forget about it,but at the moment all crypto-currencies are assets.

More of a vessel for transfer

Yes, I think Ethereum if it attained transaction speeds close to Visa and had a platform useable, not bogged down by the number of applications, then it would truly be a formidable product.

I’m trading with ETH too. But I think that ETH has a great potential for every move on the market, as for trading, and as for holding or jus investment.

That's a great point re: constant auditing of Ethereum blockchain. Yes, there are plenty of DAPPs running on ETH and plenty of platforms started as ERC-20s.

Actually this is not a big deal. Crypto currency acting as a store of value can be acted as a utility token or coin. Both are same just different from the perception. Moreover it is the wish of the investors how will they use this. Now most people are using crypto currency as a measure of investment.

If it is trading then it is not in store. It is being used just for a different method.
Another usage is the means to buy other coins. Bitcoin and Ethereum are the most used for buying ICO tokens and also user to user trades. It is still way faster than any tokens that came out there which is just copying everything from bitcoin and ethereum.
It is still way better to use the pioneer and trusted than risk it for a scam coin.

ethereum remains as a base of leading projects developing on their platform, but in cryptoworld it is considered that bitcoin is a store of value, as I get it right

I don't know, personally I prefer to use Ethereum as a means of payment for something and also I invest in projects with the help of this coin.

I think so because you also know Ethereum itself has a good growth and can transact quickly and not too expensive it so many people who trust Ethereum as a valuable and safe deposit coin, and in addition, Ethereum also called with Altcoin is best after Bitcoin

For me etheruem as a store of value coin its not imposible,why not? People like us are mostly pay ethereum during a token sale. So as long as ethereum is useful it is good. The more it can be use then the more project can develop.

This is a good idea, because the usdt on the market is always attacked, and if it is internally problematic or stolen, then the project will fail and its assets will be gone, so it is wise to hold the ether.

Therefore, one of the problems that ETH needs to solve is the throughput problem. Although many people use ETH as the tool of ICO, the ETH community is improving ETH.

basically in the world cryptocurrency is about speculation. live how we can use it. in fact some people more often use cryptocurrency as a store of value or as an investment tool. bitcoin is a store of value but is not used or offers utility use to the token holder because Bitcoin does not have a smart contract, And this is meant for peer-to-peer transactions, and on the other hand ethereum is a utility platform, most ICO makes utility coins as a storage value using platfrom ethereum. and has been proven from all coins that ethereum is stronger than other coins. Many other coins claim technically if ethereum is better in the use of ICO than other coins. ethereum remains the base currency for all those who invest in the development of Blockchain.

this is nothing new. crypo currency were used and are still being used as utility token or coin other than only as a means of storing value. also, it is up to the investors desires or will, how they feel like using their coins as long as it is ethical.

ETH is a really promising and far-sighted altcoin on the market. Its value is growing day by day and will rise for a long time. I am sure it will be the first altcoin forever.

According to my understanding, 94% of the ICOs conducted in 2017 were completed on the Ethereum platform. This is a very strong real-world usage, so I think Ethereum is a very practical platform. I am very very excited about Ethereum. Confident, I have always used Ethereum as my own stored value coin.

I agree with the statement that Ethereum is currently being used as a store of value coin, which has brought many benefits to the crypto industry as a BIockchain for many ICO projects and as coins for trading in the market of ICO projects. But let's think about the fact that many ICO are now going to second place and have lost their relevance. If we assume that the ISO projects will disappear from the crypto-currency market, as an unreliable way to invest, then where will the cost of Ethereum be?

IS there any Small Contracts For Business.?
I got information about SciDex Protocol That The SciDex protocol is powered by the SciToken (SDX), integrated in Ethereum. The RASC generator deploys contracts using SDX. Payments set by the RASC can be executed in either ETH or SDX.

I think you can use all cryptocurrency both for trading and utility purposes. It is true, many people still do not realize that Ethereum can store valuable coins. Including me. Most of the users here, especially me, use Ethereum to trade and invest coins.