Owning crypto tokens vs stocks in companies

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3 years ago
In community: Cryptocurrency and Blockchain(7b7f)
Topics: BTC, Earn crypto, Technology, Investment, Blockchain Technology, ...

So I have been thinking about this for a while now and I don't know how this will play out but I am thinking out loud. How would owning a part of the network differ from owning a part of a company? So just for the sake of example, let's pick Lbry. Would owning Lbry token be a small part of owning the network and if Lbry is wildly successful tomorrow (in the likes of YouTube, DailyMotion, Vimeo etc) would you be rewarded for owning a part of the network? If all you own is a utility token which you are able to use to transact on the platform, does it give you the power to be part of the network and will the growth of the network also increase the value of the utility token?

I think this is a very important factor before anyone decides to invest their money in any crypto project. Even now for me, if you want to create wealth, it seems like putting money into profitable companies seems to be the best way. I don't know if utility tokens can help people create wealth. Maybe networks and platforms like Ethereum can do it better than utility tokens? Let's discuss for the benefit of everyone so everyone makes an informed decision!

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https://read.cash/@Mobarok0210/about-readcash-simple-fundamentals-27907c4d

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User's avatar Mobarok0210
3 years ago

it depends on the usage and utility of the token. if it's used in a one-way, transactional manner, it becomes akin to taxes....an entity pays you in their money, then you give it back to gain access to something from the entity.

but there are many many many different token schemes. governance tokens give an individual a voice but will that be drowned out by the whales?

this makes me think about Hive and all its tribes. anyone can create a token there, and build a gateway to the Hive blockchain that tokenizes engagement.

but "the system" isn't constantly asking you to give back your earnings. "the system" are overlapping sets of individuals and like-minded groups building on a social media blockchain, and generating value as they go. i don't think that LEO of LeoFinance is a useless utility token, for example. CUB is fresh and DeFi slick, but it is all those people holding it and making the system that is generating wealth.

and i have to imagine it is ACTUAL wealth, like profit, for a good number of those people, or they would not spend so much time engaging, curating, blogging, commenting, being real nice to each other.

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User's avatar lerkfrend
3 years ago

this is probably the best explanation I could have got on this subject. Thanks buddy!

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User's avatar potta
3 years ago

i'm glad it made sense. i'm just now dipping a toe into Hive, but they seem to be making tokens work.

LEO, CPT, DEC, a bunch of others. Splinterlands cards are large run NFTs and can now be bridged to WAX....

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User's avatar lerkfrend
3 years ago

I'm on Hive but i've mostly been inactive there except to track my daily walks/runs there. https://hive.blog/@potta/ if you're interested.

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User's avatar potta
3 years ago
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