A True Cryptocurrency must start with the fundamentals

[TokenHodlr]

I believe there already exist cryptocurrencies that can achieve most of the things you listed  in Blockchain-friendly manner. Some altcoins have also done alot of difficult development job in Blockchain world. They will just need to keep improving the existing products. New coins will probably just copy them or  build centralized Blockchains.

I'm sure the things I've listed as prerequisites are far from inclusive of the elements necessary for strategic success. This very small list was meant as a stimulant for mind-storming only.

I think we could certainly find it useful if you could provide some examples of crypto systems that achieve even these few things listed in this thread.

Much gratitude for your contribution to the community and the conversation.

[mu_enrico]

In my wildest opinion

I think currency is used only as MoE and UoA. It doesn't yield profit, doesn't have intrinsic value, doesn't have to be pegged with anything (at its final form). The problem with the fiat however, the government keep playing with the supply (inflation).

The consumption-based economy failed to predict that humans are incredibly greedy, lazy, risk-averse, etc. Instead of using the increased money supply to do productive activities, they use it to inflate assets/commodities.

Treating currency like stocks, that can yielding profits, have a predictable outcome, the greediest people will compete to have the biggest pie. And do nothing.

Maybe currency has to be pegged with gold as in a true gold standard, to reduce speculative behavior.
And then slowly and silently partially detached from gold (after WW1 - Bretton Woods).
Then completely separated from gold (Nixon).

The funny thing is, a lot of people still think that currencies are "backed" by gold. I believe this is why the currency is relatively stable because the uninformed don't understand. The perception has penetrated the deepest subconscious brain area, that the money is stable.

A similar event occurred in 98 when SE Asian countries abandoned pegged system (USD) and then used the free-float system.

Cryptocurrencies, without first pegged with something stable, would end as speculative assets.

[TokenHodlr]

In my wildest opinion

I think currency is used only as MoE and UoA. It doesn't yield profit, doesn't have intrinsic value, doesn't have to be pegged with anything (at its final form). The problem with the fiat however, the government keep playing with the supply (inflation).

The consumption-based economy failed to predict that humans are incredibly greedy, lazy, risk-averse, etc. Instead of using the increased money supply to do productive activities, they use it to inflate assets/commodities.

Treating currency like stocks, that can yielding profits, have a predictable outcome, the greediest people will compete to have the biggest pie. And do nothing.

Maybe currency has to be pegged with gold as in a true gold standard, to reduce speculative behavior.
And then slowly and silently partially detached from gold (after WW1 - Bretton Woods).
Then completely separated from gold (Nixon).

The funny thing is, a lot of people still think that currencies are "backed" by gold. I believe this is why the currency is relatively stable because the uninformed don't understand. The perception has penetrated the deepest subconscious brain area, that the money is stable.

A similar event occurred in 98 when SE Asian countries abandoned pegged system (USD) and then used the free-float system.

Cryptocurrencies, without first pegged with something stable, would end as speculative assets.

Negative interest rates turn everything we know about economics upside down.

Under what scenario would anyone lend $1,000 to receive $900 in return at some point in the future?
Only when the alternative is to receive $800 back instead, due to the predicted interventions of central
banks and governments. Only then would locking in a set rate of capital loss make sense.
By "capital loss" I mean just that; when there is, no positive interest paid, the principal itself must be consumed.

[TokenHodlr]

No society in history has previously entertained the idea of negative interest rates.

The destruction of capital, economic and social, should be contrary to every human impulse.

Civilization requires productive surplus and accumulation; de-civilization happens when
too many people borrow, spend, and consume more than they produce.

However, what if the crypto revolution succeeds?

What would it look, sound, smell, taste, feel …like

As in any revolution, today’s top dogs have the most to lose.

[mu_enrico]

It is often criticized actually... some said let it "flow" naturally, the recession is good for the economy.

Under what scenario would anyone lend $1,000 to receive $900 in return at some point in the future?

This:

The consumption-based economy failed to predict that humans are incredibly greedy, lazy, risk-averse, etc. Instead of using the increased money supply to do productive activities, they use it to inflate assets/commodities.

The contemporary economic systems encourage spending (consumption) to drive economic activities. It assumed that HODL is terrible for the economy. Inflation is a form of tax for idle money.

When inflation is already low, how government tax people? Obviously with negative interest rates.

Civilization requires productive surplus and accumulation; de-civilization happens when
too many people borrow, spend, and consume more than they produce.

How to encourage greedy, lazy, and overly risk-averse people to work? To be more entrepreneurial? (push)
How to attract diligent, bright, and risk-taker people to keep working and producing? (pull)

How "cryptocurrencies" alone solve this problem?
Perhaps, the "better" system has not been envisioned?

[btcmegastar]

Any good project must be based on sound fundamentals but to me what differentiate good projects that succeeded and those that do not is sound marketing behind their project, this is one thing in the space that is really lacking, what most of these projects rely on is using Twitter influencers and this can only do 1/10th of what needed to be done. Until this is looked into critically, not when you want to raise money but after the platform is up and running

Marketing/sales has two strategic approaches. One is a push, the other is pull.
Push entails force, very expensive, pull has your constituency driving demand. 

I agree that marketing can be done after the product is running and so investors understand about the project to be invested. Fundamentals are important because they form the foundation of a project because fundamental analysis will determine how a company earns money and finances the project

In block chain majority, we need to understand fundamental analysis about the future activity that's how they will raise the fund through their crowd sales. Their major target is to develop the product to get more exposure in the market and it will help them to attract the investors and traders.

[TokenHodlr]

It is often criticized actually... some said let it "flow" naturally, the recession is good for the economy.

Recession is good for the economy, in the sense that it is the winter season in all properly
functioning economies and their markets. Without winter, there is no pruning mechanism,
which provides the fertile space for the new and renewable growth that drives the entrepreneurial
impulse, producing the surplus seed corn, for planting in the spring, after the winter has done its wonderful work.

The consumption-based economy failed to predict that humans are incredibly greedy, lazy,
risk-averse, etc. Instead of using the increased money supply to do productive activities, they use
it to inflate assets/commodities.

I don't view these as failure of morality issues. These are in fact, in my opinion, simply symptomatic
of a systemic failure on the part of our systems, institutions and the governance thereof. This too, I see
as a multi-generational cycle. A defining characteristic this time around is the rapidity at which the change
is taking place. In other words, what used to take generations to acquire can now be realized intra-generationally.

This, I believe is being driven by a multiplicity of "mega-trends" coalescing into "meta-trends". When I first
began to tease this out, one of the conclusions I thought I had made was that this was happening so quickly
that it had to lead to some kind of culture shock. Don't think I could've been more wrong about that.

The reality of it is that more than 99% of humanity is sleepwalking right
through it, and as history reveals to us, there will be a relative handful of
people that recognize these universal drivers, setting themselves and their
descendants up as the new movers, shapers, rain & king-makers, for generations to come.

How to encourage greedy, lazy, and overly risk-averse people to work? To be more entrepreneurial? (push)
How to attract diligent, bright, and risk-taker people to keep working and producing? (pull)

How "cryptocurrencies" alone solve this problem?
Perhaps, the "better" system has not been envisioned?

Having invested more than 30 years in the turnaround/startup space, some key lessons I've picked up
along the way are, in no particular order, the system over time corrupts the people. This is
the fault of the system not the people. There is no greater fertilizer than an owners footprints,
provide a vesting mechanism and transform them all into owners. It is like cutting the string from
a helium balloon. The solution is almost always where the problem is. Start at the shipping/receiving
dock and ask them, "What can I do to help make your work bigger, better, faster and funner"? and long
before you get to the E Suite, they will have provided you with the turnaround plan. And a bonus is, they
also reveal to you where and who the dead wood is, so the pruning can begin as well. That can be like discovering a vaccine.

To me cryptocurrencies are but a small part, although important as a component, but far from a problem-solver
in and of themselves. The Eco-system and cryptocurrencies that will ultimately succeed have not been visioneered,
engineered and brought to market yet.

[mu_enrico]

Thank you for choosing to teach @TokenHodlr, and I pretty much agree with what you said.

I don't view these as failure of morality issues. These are in fact, in my opinion, simply symptomatic
of a systemic failure on the part of our systems, institutions and the governance thereof.

Having invested more than 30 years in the turnaround/startup space, some key lessons I've picked up
along the way are, in no particular order, the system over time corrupts the people. This is
the fault of the system not the people.

I have a similar conclusion about the system as the source of problems. I've seen enough evidence that the system can turn "good people" into "bad people." Humans have two polarities, the X and Y in one package, and I see the current system embrace one side over another.

To me cryptocurrencies are but a small part, although important as a component, but far from a problem-solver
in and of themselves. The Eco-system and cryptocurrencies that will ultimately succeed have not been visioneered,
engineered and brought to market yet.

It's very noble for you to keep doing this research while there is a probability that this (true cryptocurrency) is only a utopia. Probably currencies should be detached from economics and governance.

Economics, the allocation of resources, perhaps cannot satisfy all involved parties. Governance, the distribution of power, maybe always imbalanced, continuous cycle of order and chaos.

However, before I pass the baton to anyone who is far more competent than me, here's my general idea:

Freedom to choose between saving, consumption, and investment, but encouraging people without coercion to create/produce/invest, and not to hoard.
A mechanism to protect the system from malicious acts of its biggest holder and its creator.
A mechanism to prevent it from being used as speculative assets at its infancy.

[bitcoinposts]

Crypto currency is full of fundamental knowledge based trading a crypto currency trader should stick with his fundamental knowledge based then we can pick price fluctuation and book profits

[Marckolind]

of all the listed suggestions I most confess having a solid use-case is the most important feature in a project. It beats me hollow when I see projects with zero or no use-case propagating in the crypto space. No use case equals to know the demand and this further implies no value. Hence its pivotal for a project to have a good usecase in order to ensure value.

Couldn't possibly agree with you more. There are tons of useless projects out there with 0 use cases at all. They simply steal code from other projects, and claim it as their own under some kind of disguise, some don't hide it at all.
One of the few projects I know who's been working their asses off is Blocknet. These guys made the first DEX, coded everything from scratch, yet it seems like nobody cares? I don't get it.
Look at TRON, just as an example. Did an ICO with empty promises, recieved millions in funding, pumped like crazy, and dumped back down again, yet it's STILL a top 20 coin, based on what? NOTHING.

As an investor it's really hard to know which projects is worth your time, and which aren't. Blocknet is pretty solid though, among other old projects who had the time to develop their own products.

[RBOWEN]

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[TokenHodlr]

Metcalfe’s Law, which measures the value of a network, can
calculate a cryptocurrency’s value, assuming the key measure
of value for cryptocurrencies is the network of entities who use them.

The original law is based on the idea that the value of a network grows
 in proportion with the number of all possible connections. In other words,
it assumes that all nodes can connect with each other.

This can happen for short periods of time because of factors such as herding
 behavior. But without an infinite number of people it is not sustainable. For this
reason alone, a crash or correction is inevitable.

A key concern must then be how to attract early adopters and opinion leaders prior
to reaching critical mass.

As the number of users increases, the system becomes even more valuable and
 is able to attract and retain a resilient high-quality stakeholder base, organically
growing the networks Member Services and Utility Values.

The key strategy here is to create a system that builds-in enough tangible and
experiential value, to early adopters, without significant network effects at the outset.

[bvg96634]

Alas, true maters are rare nowadays. there are genius in crypto as Leonardo was in art and science who understand the matter but it's like one in a million.

[thisnewcoin]

Honestly, I did not find all of these features in any startup crypto project yet. Some potential projects came with their products and future use cases, investors supported them. But most of the new project doesn't have any real use cases except some words in the whitepaper. But if a project comes with all these fundamentals, that will be a blessing for the whole crypto industry!

[aces777]

I think there are some fundamental knowledge that guides the cryptocurrency industry, or rather, that can help one scale through the cryptocurrency industry. If this knowledge is applied duly, and certain rules are skills are adhered to, there will much more success and wins recorded in the industry rather than loses.

[TokenHodlr]

Are there any Altcoins out there backed by real assets?
‘Real’ assets produce profitable income streams.

The Creation of an Apex Class Competitor.

•   100% recycle, repurpose, renewable, blended, and balanced, carbon negative, GHG mitigated, closed-loop ecosystem with a superior, durable and sustainable ecological profile.
•   Extreme supply/demand imbalances with systemic structural and institutional barriers to redress.
•   Durable, substantial, meaningful, authentic experiences and messages highly sought after by a motivated, economically resilient and affluent customer/end user demand.
•   100% sustainable, renewable, below-zero emissions, carbon negative, blended & balanced, closed-loop eco-system.
•   Primary profit centers blitz-scalable at very low capital intensity with positive, measurable and meaningful ecological impact.
•   Highly motivated, economically resilient customers and end users for all product lines.
•   Vertical integration of all key elements in transaction chain from input to end-user, creating a stacked margin effect.
•   Customers bear a majority of cap costs through long term contracts.
•   Marketing Messages and collateral are green, clean, hi-tech, authentic and durable.
•   Non-seasonal continuous harvest and production in all profit centers.
•   All product and service offerings are contracted out to capacity translating into a capacity-driven business model, sustainably reducing the cost of the marketing and sales function.
•   Cross-pollinating profit centers….
•   Substantial surplus of GHG emissions and carbon sequestration credits – consumer, producer, deveoper and distributor.
•   All operations are capacity driven, Not Sales.

[shield132]

Leonardo D’ Vinci was once asked, by a patron,
“how do you create such magnificent works out of rocks?”
His answer came immediate and sure,
“I chip away everything that’s not angel”

A true Cryptocurrency must start with the fundamentals...based on principles of the highest order.
What would a true cryptosystem look like if it had everything in it from the beginning?
Then pruned "everything that’s not angel"?

If it had everything from the beginning? Everything that’s not angel? And how is that possible man to consider everything? And also what if we won't forget the fact that we change and something that was acceptable in past, isn't acceptable now and opposite. Centuries ago people were saying: With such young generation, we will ruin but as you see instead of degradation we are developing on higher level (still degrade too for some reasons at some point). Our views and thoughts are changing so if something has everything from the begining as for now, this can turn from everything into void in future because of our thoughts and needs change.

[TokenHodlr]

Absolutely Right.

Everything meaning the fundamentals necessary for a true closed-loop eco-system.

These fundamentals must lead to and be driven by a profit-making enterprise. This then becomes the
basis for buyers, sellers and other trans-actors to discover true price value of the systems' native token.
Much like you would use the price-to-earnings ratio to determine a fair price for one share of a company's
stock/token. I.e. 1 million in earnings divided by 1 million tokens will provide you with an actual face value;
no pump-and-dumps, no meaningful volatility, no speculation. Just true, transparent blockchain-authenticated
price/value discovery.

Hence, a reliable store of value and Method of Exchange (MOE).

[TokenHodlr]

And how is that possible man to consider everything? And also what if we won't forget the fact that
we change and something that was acceptable in past, isn't acceptable now and opposite.

Our views and thoughts are changing so if something has everything from the begining as for now,
this can turn from everything into void in future because of our thoughts and needs change.

You ‘man’ Have opened up Pandora’s box. Do not despair, your miseducation is just incomplete.

[TokenHodlr]

But if a project comes with all these fundamentals, that
will be a blessing for the whole crypto industry!

This can only happen if we , as a community cut one from
whole cloth. As I’ve said before this is not a build it and they
will come opportunity, this a build it ‘they're already there challenge’.