If a good is profitable to produce, an entrepreneur will make it, including what is used as money.
Examples, Venetians made West African glass beads, and New Spain's silver mines.
Examples, Venetians made West African glass beads, and New Spain's silver mines.
The value of a utility token can be viewed as that service's marginal revenue.
The marginal cost of forking the code or competing for that MR is near zero.
So eventually, the value of every utility token will approach MR = MC.
The marginal cost of forking the code or competing for that MR is near zero.
So eventually, the value of every utility token will approach MR = MC.
Features aren't scarce. 7 Minute Abs is genius, until some comes out with 6 Minute Abs.
Competing on features is the quickest way to obsolescence.
Btw, privacy is a feature that can be iterated and improved, too.
Competing on features is the quickest way to obsolescence.
Btw, privacy is a feature that can be iterated and improved, too.
Digital scarcity as regards value is elusive. Simply being cryptographically scarce today, doesn't mean the token won't be under cut as a whole in the future.
To maintain digital value, a value prop must be a maximum, not able to be improved upon.
To maintain digital value, a value prop must be a maximum, not able to be improved upon.
Altcoins compete on features, like smart contracts or transactions/sec (tps), these are innovation at the edge, and don't form a defensible competitive advantage.
Living on the edge, as it were, necessitates constant change. Constant change makes accruing confidence impossible, since the very nature of the asset is in flux.
If competing on features makes long term value (SoV) indefensible, what can altcoins compete on?
