Token question and ownership

[Rad498]

You've clearly pointed out the difference. It is a very wrong concept to compare crypto money with stocks. As you said, there are supporting factors such as real estate in bonds and stocks. But in the crypto money market, the supporting point is the coin or token. It will continue to exist as long as people show interest in these projects and their cryptocurrencies. When the interest wanes and a stronger one emerges, that cryptocurrency disappears into the dark shelves of history. This is the same for every market, not just the cryptocurrency market.

Publicly traded companies with revenues and profits will never disappear unless they go private or are bought out.  If you buy an index fund of US companies like sp 500, it will never disappear for many lifetimes as long as there is a US stock market.  It is backed by millions of people working for these companies who strive to grow the companies and their value.  

So essentially what your saying is that we are buying tokens because they have the name of a project attached and we like that project because of what it promises to do or because someone is hyping it?  But the tokens themselves give us no rights, ownership, future cash flows whatsoever?   

 I think I’ve just uncovered a scam?  I’m going to create a token called husky coin because I really like those dogs.  Oh, wait, we have them already (shiba, doge, etc). 

[KellyHands]

I am new to crypto and was hoping someone could help.

I understand that with stocks you are getting ownership and future cash flow of a public company, bonds your providing a loan and getting paid back with interest and real estate your getting rents and appreciation. 

What are you getting with tokens like etherium, algorand, polkadot?  There are no cash flows, ownership stakes, or interest.  There are no earnings reports or how successful the software is.  If there is nothing backing these tokens, I fail to see what value they have?   

I can see you're trying to compare shares and stocks to cryptocurrency tokens and coins. In shares and stock you don't only earn from dividends, you also earn from increasing value of the stocks and shares, though the increase is quite small. But in cryptocurrency, you can earn much more from the volatility and the increase in value. Bitcoin traded less than a thousand dollars in 2016, but it's trading above 20,000$ today.

[Rad498]

I am new to crypto and was hoping someone could help.

I understand that with stocks you are getting ownership and future cash flow of a public company, bonds your providing a loan and getting paid back with interest and real estate your getting rents and appreciation. 

What are you getting with tokens like etherium, algorand, polkadot?  There are no cash flows, ownership stakes, or interest.  There are no earnings reports or how successful the software is.  If there is nothing backing these tokens, I fail to see what value they have?   

I can see you're trying to compare shares and stocks to cryptocurrency tokens and coins. In shares and stock you don't only earn from dividends, you also earn from increasing value of the stocks and shares, though the increase is quite small. But in cryptocurrency, you can earn much more from the volatility and the increase in value. Bitcoin traded less than a thousand dollars in 2016, but it's trading above 20,000$ today.

So what your saying is that the only value is that we can trade these tokens and potentially make gains (or big losses)?    Their only utility is that they are traded.

Since there is no underlying utility of the great majority of these tokens and projects, and they confer no ownership,  it is very likely that at some point they will be worthless.  When the masses realize they are buying worthless computer code which has no value. 

That some of these worthless “projects” are worth as much as publicly traded companies which actually make money and produce products which people can use and buy.