Who Will Win The "Money" Game?

There seems to be a lot of attention on this question. Many are wondering which currency is going to end up as "internet money".

The obvious choice appears to be Bitcoin. Heavyweights like Jack Dorsey agree with this idea. It stems from the concept of getting Bitcoin to be accepted everywhere, thus switching from fiat to crypto in our commercial affairs.

While I agree with this idea, I do not feel that Bitcoin will be the one used for that purpose. In fact, I do not believe we will see any single currency doing that. Isn't that a major part of the problem these days? The fact that the USD is a dominant currency allowed a host of problems to be spread throughout the world.

There is also a more fundamental reason why my view stands as it does. People, simply put, will spend what they have. Those who use the Euro did not opt for that because it is a superior currency. Instead, the reason it is used is because that is what shows up in the bank account.

Hence people will choose based upon what is in their wallets.

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We see another factor to this that is worth bringing up. The presumption is that the existing commercial structures will remain in place with just the currency being altered. This is a big jump considering all that is taking place with technology.

Blockchain networks are forming communities. This means that many will erect commercial entities that fill their needs. Perhaps the idea that Amazon, as a retailer, will be under threat is a viable one. Presently, we are not at that stage but is the concept of a "store" just servicing that community so outrageous? Doesn't it make sense, on some levels, for each community to set up its own marketplace?

One might think that larger is better since that is what we were reared with. Economies of scale, after all, do provide tremendous advantage to those entities that have size. That is why an Amazon can gobble up market share at the expense of smaller competitors.

But will this be the case in the future? How does the idea of a DAO change things? Is this something people would prefer to buy from as opposed to an entity that mostly favors Wall Street?

When people have some skin in the game, they tend to alter their behaviors. Thus, one who has some tokens in a particular commercial DAO would be more apt to shop there as opposed to a major online retailer.

Which brings up another piece of the money puzzle. We are going to have to transition from the idea of cryptocurrency being the investment to it being used for investments. DeFi is going to help with this shift.

Presently, people speculate on tokens since they have a tendency to go up in value against fiat. Here is where we see the phase we are at. The reason we price everything against fiat is because we still live in a fiat world.

Does anyone do the same thing with his or her fiat? I would guess that unless someone is doing some international traveling, the answer is no. How often does one compare the money in his or her bank account and get excited because those USD are now worth more GBP?

As the infrastructure for crypto develops, we will see the transition away from this. Instead of comparing it in fiat, we will seek to determine how it grows on its own. Thus, in a DeFi situation, what return does one get on a yearly basis, priced in that currency? The key will be to earn more crypto, not necessarily fiat.

Consider the situation if #SteemLeo offered out an index fund priced in LEO. As the market goes up, one makes more LEO. If it turns downward, less LEO is held. This is the currency that all is priced in and one buys and sells based upon LEO.

Certainly, one is free to associate the value in any currency he or she wishes. This could be fiat or crypto. Heck, if one wanted, the price could be translated into gold. But why would one do that unless converting at that time?

If I am going to be a long term investor in this index fund, it matters none. I have LEO in my wallet and that is what I use to buy the fund. When I sell, I hold my LEO waiting for another entry point back into the market.

I could also convert other currencies to LEO if I wanted to. Perhaps I add to my holdings by converting some LTC or Monero.

The key is to watch the mentality shift from speculating on the token to using it for other purposes. Perhaps one wants a bit of real estate that was tokenized. This, we can use whatever crypto we are holding to acquire that.

We are seeing the world of decentralized finance just starting to kick off. This is going to be a massive field when it really gets going. There are going to be thousands of options out there for people holding cryptocurrency. This will mean that there is another path rather than just speculation.

Ultimately, one might have a hundred different holdings all priced in different currencies. In the end, the network (community) attached to will determine which currency is important. One might opt for some of the larger platforms because, as they grow, volatility should be reduced. However, when one is getting rewarded in many different tokens, the question of what to do with them becomes important.

In other words, how are we going to spend it?

People purchase stocks, real estate, cars, smartphones and t-shirts. They do this using some type of fiat. We are seeing a shift, in some of these areas, where the purchase can occur in crypto. DeFi might be ahead of other commercial developments but they will come.

Thus, if people have a hundred different tokens they acquired, that is what they are gong to use to buy things.

I think this point is fairly clear.

So when in Rome, do what the Romans do shifts to when on Steem....

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