We all love moonshots
If the coin or token you are holding raises in value and you become rich then is can be life changing.
Now I am not saying that this is a bad thing or I don't wish it'll happen to me
Who doesn't want to be rich! I wish I get a moonshot, I wish you (whoever you the reader are) get a moonshot.
But there is a side to it that one should not ignore, and no I am not talking about the vices of Money or Greed.
But the principal and the technology
Here's what I meant:
So we all know Cryptocurrencies are considered investments and a speculation game, a game where you buy into a investments with a hope that some Schmuck comes along and buy your investment for a hefty price and you become rich in dollar terms.
I hate that notion
I don't believe that Crypto is a Zero-sum game where one has to lose in order for someone else to win
What I do believe in is the utility, that the value of blockchain technology and how it can bring about a change into the world.
Here's a meme you might have seen long time ago, but it still holds true even today
So what does moon shots have to do with any of this?
Here's the thing if something fluctuates too much that it becomes volatile and isn't practical for daily use.
Think of Venezuelan bolivar its value keep falling so you can use it for daily needs. There is no point in getting 1 million bolivar salary if one day you can buy a car with it and the very next day you can only buy a loaf of bread.
Same is true for Gold you don't go around with gold coins to buy stuff because it value can fluctuates as well and mostly in upward trend. Because people believe it has value as a store of value and that over time the general trend will always be up.
Therefore if you buy say a car with 20 gram of Gold today, you could have brought 2 cars with it in a few years. Now, if say NASA suddenly bring a gold asteroid from space to Earth we would have a large supply of Gold and could crash the value.
It as well might not happen because again if people believe that Gold is still valuable even with the surplus supply. Or it might crash to the price of any other metal or mineral used in industrial application like manufacturing of electronics.
What's wrong with Crypto being a Store of value?
The problem with that is that the utility of the Cryptocurrencies isn't from speculation but from what the blockchain technology can do.
Currency coins are meant to be used as a medium of exchange and smart chains are meant to run smart contracts.
The utility is from what the blockchain can do.
Case of BTC
Look at Bitcoin (BTC) and what it has become
It is slow, it isn't safe, it isn't accessible but it holds the most value because the Maxis believe it has value and the market believe it has value.
But by today's standards it is just some old rusty coin
BitcoinCash on other hand is much more efficient
Same for Ethereum it is the second most valuable crypto in the market and has the largest Smart ecosystem, but its price is its main problem.
Case of ETH
We all know that problem with ETH gas fees, if you are transferring it can be notorious but if you are running a smart contract then you can easily bleed a lot of ETH.
If you are minting a NFT or transferring or just building something,
But this is because even a little bit of ETH can cost a lot in dollar terms but if the ETH prices were same as they were say 5 years ago we would have this problem.
So yes, dollar moonshot have hurts Ethereum's usability.
Final Thoughts
I believe that the race is on and the value of Cryptocurrencies will keep raising and the ones with the most utility will be most valuable. (Unless CBDCs doom us all and the world is plunged into darkness and madness, bring a hellish dystopia on us all)
But there will come a point when we hit the optimal value and then we won't need to value Crypto in dollar terms but how much of real and actual use it has, either to buy stuff or to solve something.
And that would be the Utopia that the meme above foretells.
Hope to see you in that world, thank you for reading
