1/ "Utility tokens" are nonsense created to scam people out of their money. They are simply money competitors doomed to fail. Futile exercises in trying to create isolated circular economies.
2/ If you need to create an economy of incentives in your app, for example rewarding people for sharing their hard drive space, build the app, and adopt bitcoin. I.e. money.
3/ App "users": pay bitcoin; app nodes: rewarded in bitcoin. Done. This way your app is not constrained by blockchain limitations, and you still achieve the incentive structures required to make it work.
4/ The only reason this route is not chosen is that it does not involve getting rich quick.
5/ Bitcoin is totally liquid, available, convenient, and does not have it’s own floating exchange rate. Adopting bitcoin also allows your system to interact with *any other* bitcoin-enabled apps.
6/ This, by the way, is exactly why we use MONEY in a traditional market, and not watercoin, steakcoin and rentcoin.
7/ Even the floating exchange rate fiat paradigm we live in today is totally weird, unnatural and suboptimal. It’s normalised something that should not be normal.
8/ A free market would naturally trend towards a single standard. Gold, traditionally. No one in their right mind would ever voluntarily choose a multi-money/token system, with an infinite, exponential expansion of exchange rates.
9/ Utility tokens essentially represent a return to barter. One big fat backward step.
