From Speculation to the False Sword, Cryptocurrency Struggles for a Use Case

On the corner grocer in a small town, my small town, there is a slot machine that allows you to buy Bitcoin
BTC
. It gathers dust. I have yet to see anyone use it.

However, of the hundreds of cryptocurrencies that reside in your Gemini account, Bitcoin is the one with the highest use case. You can buy Teslas
TSLA
with that. Now you can’t. In Florida, you can buy real estate using. Cipriani Residences Miami, a new luxury condo project, has partnered with FTX, a cryptocurrency exchange company, to start accepting all major cryptocurrencies to buy property there.

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“Bitcoin is the leading cryptocurrency because of its brand recognition, market capitalization and daily volume,” said Jose Arnaiz, CEO of Realverse in Valencia, Spain, an augmented reality solutions company that creates charts that used by boaters. “The problem with Bitcoin for the use case is that it’s not intended to support small, fast payments,” he said, adding that the Bitcoin Lightning Network can solve part of that problem. It has been established since 2016.

Other features, such as Lumens for the Stellar (
XLM
) open-source fintech network, believed to be used for remittances, although I have not seen any data on how it is actually used or if it is multiplying.

“Where is the ripple
XRP
likely the future of institutional and financial money transactions – possibly replacing SWIFT – Stellar bridges the gap between peers to enable fast and extremely cheap transaction fees (less than a penny) to send money from person to person “, said Rodolphe Seynat, co-founder and strategic investor of a company called Serenity Shield in Belgium. They have created a secure decentralized solution to protect access to lost people. digital properties.

Ethereum (ETH) is used to pay for transactions and other payments in the Ethereum blockchain. Investors bought ETH thinking they were investing in the future of the Ethereum blockchain – more users, more fees, and more demand for ETH.

Aside from the blockchain -based tokens used on specific networks, what are the cases of using these coins as they struggle in a world where central bank digital currencies threaten to blow it all away, including making it illegal, as China has done, with more or less success?

The recent explosion of the Terra Luna blockchain coin
LUNA
, which is now worth $ 0.0001 after selling at $ 118 in mid-April, is a reminder that many of these coins have no real value. Space startups are always trying to change that, but right now it usually means adding value to their own ecosystem. When most of us think of a use case for money, we think: can I bite a souvenir of my hotel with it? Can I buy it? For crypto, it’s usually about the token -based ecosystem – think of tokens earned in a game that can be spent on items purchased in the game or in a virtual world.

For example, Arnaiz’s token, called Baybayon, is intended to be used on the SeaCoast mapping platform. The only way Coast token holders can buy a boat with it is if they exchange the Coast for fiat.

However, Arnaiz said the token can be used to secure reservations, restaurants, hotels and boats.

It is not known how many of these tokens were used to make these transactions. The company says it is working on direct payment agreements with companies that will allow their token to be used outside of the Seacoast ecosystem. These agreements will expand the services already offered by their investment partners Bitnovo and OK Mobility in various coastal countries. In terms of ports, they told me that their goal is for some 180 ports in Spain and Portugal, operated by one of their partners, to allow docking fees on their cryptocurrency. They said they would expand to other parts of the Mediterranean and Caribbean.

The platform is everything. The ecosystem is everything. This is only the case in use, with the exception of Bitcoin and some notable examples such as real estate in Dubai and Miami.

taking an avalanche
AVAX
for example. It replaced Polkadot
PUNTO
and Solana
PAVEMENT
as a favorite of the all new non-Ethereum blockchain. Investors love AVAX because of Avalanche’s growth, but no one can use AVAX to buy a sandwich. (Except maybe in a metaverse fantasy.) Its price dropped from $ 138 in November to $ 27 so far.

Why would anyone want AVAX if they don’t use Avalanche? Because it’s an investment, and that’s it.

“The reality of today’s evolving blockchain technology is that monetizing data through services for fiat has gone even further and has become tokenization,” Seynat said. “You buy the token to manage a specific project or ecosystem because that blockchain is growing and users want or need the token to do business there no matter what.”

Chung Dao, co-founder and CEO of Oraichain, a scalable Web3 DApps solution based in Vietnam, said many existing blockchain tokens offer “little outside of their ecosystem.”

The rise of decentralized finance has given some of these new coins additional use and value over the past two years by allowing users to bet and claim prizes (or produce payouts) for holding coins.

“The rise of blockchain scaling solutions has become a central aspect of the DeFi ecosystem,” he said of a use case for tokens related to the blockchain project. “Many blockchain groups and communities are creating technology solutions that give users more value and more functionality outside of their platform. Other platforms have become more interoperable, forming a network where many blockchains can communicate, ”he said, naming one called Cosmos.
ATOM
.

Other use cases are, of course, metaverse platforms.

MANA is the native landmark of Decentraland (
inheritance
) and I own it, but Decentraland crashes my computer and once I use it I spend hours creating my avatar and then another 10 boring minutes walking through the wall alone. Why am I the owner of this money loss? Because as an investor, I believe in the metaverse. I’m sorry.

“It’s no surprise that MANA’s primary function is to power in-game purchases, but I can suggest a few other tools for this,” said Rafaeul Zeitunian, co-founder and CSO of Grand Time in London. They pay for Grand Time as a “gig economy marketplace” where you get paid with their cryptocurrency (GRAND), which can be exchanged for the more liquid Polygon (
MATIC
). Zeitunian says you own MANA for investment, actually. “You buy it and keep it for a long-term profit as the project progresses. It’s very popular now, so there’s a chance it could be a successful metaverse. And you’re the owner of it for staking.

It seems, at present, that the only real use case for cryptocurrency is the new investment vehicle. These coins have become a way of investing in tech start-ups that few investors understand or even use. But if exchanges like market leader Coinbase serve as an example, treating these tokens as “securities” – a new type of stock – is the only real use case, for now.

“Going forward, I see Bitcoin becoming more of a store of value than a means of payment,” Dao said. “I think businesses and corporations will add Bitcoin to their balances rather than spend it on their costs. The rise of the dollar could be the ideal replacement for Bitcoin as a means of payment due to stability, dollar -like structure and speed of transactions, ”he said.“ Around the world, many crypto workers are slowly accepting the USDT for payment. This could flood into more traditional industries.

joined
USDT
also used for transactions between small businesses that interact between Russia and China. The USDT has been subjected to lengthy profile scrutiny in terms of its reputation as a payment method, as a way to avoid penalties, and especially with regard to the transparency of its reserves. While the people behind Tether insist all is well, it has seen its risks increase in the recent takeover of more than $ 17 billion since Luna’s death, according to Ahmed Ismail, chairman and chief executive of officer. routing protocol and cross-blockchain liquidity aggregator.

“Traditional finance has taken decades to change what it is today,” Ismail said. From the high-octane, high-risk/reward era of equity and debt markets in the 1980s, 1990s and early 2000s to the dot-com meltdown, the Enron scandal and In the 2008 financial crisis, regulators acted to protect investors by creating new standards for issuers and market participants such as investment banks and brokers to follow. These standards and rules protect the traditional financial ecosystem.

“The crypto industry won’t take decades to mature, but I think it’s getting there faster than traditional finance,” Ismail said.

Regulators have already begun to define frameworks and rules of engagement for companies and projects. Clearly much more is needed, especially with DeFi. In the Luna debacle, there were promises of returns that the traditional securities regulator did not allow.

“Proper regulation that protects the interests of token users and investors ultimately ensures wider adoption of crypto and more real -world use cases,” Ismail said. “It’s going to be the most important.”

*The author of this article owns Bitcoin, Decentraland, Lumens and Polkadot

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