A lot of discussion in the crypto space revolves around utility. For years, many outside crypto always ask "what can you do with the coins"? This is a valid question, one that we do not have a clear cut answer to.
Certainly, use cases increased over the years. Bitcoin is making headway in its acceptance around the world. The challenge with this is that we are trying to insert cryptocurrency into the present financial and economic system. I believe cryptocurrency's future lies in the fact we are creating a brand new system that will provide an alternative to what presently exists.
The virtual world is primed to be dominated by cryptocurrency. With the ability to create currency for any project, this is a fabulous way to enhance user experience while also adding the market component to the network.
Of course, ultimately, the goal has to be to bridge the virtual with the real world. This is where cryptocurrency is lagging.
The other day, there was an opportunity put out by @cryptobrewmaster which shows how this can be done. Most are aware this is a new game that is about to be released on Hive. It centers around the brewing of beer with each player setting up his or her own brewery and putting out product. This is an operation that will take place in the virtual world.
What many might not know is that @rollie1212 is an actual brewmaster. He has a brewery in Kiev that can actually brew 30,000 liters of beer a month.
As a way to promote the game, the team behind the project decided to brew 2,000 liters of ale. It takes about 3 weeks to brew the produce and then it is ready for sale. The goal is to distribute the product quickly to gain attention and, hopefully, bring more people to the game.
This is a wonderful example of how having a product can enhance a game and vice versa.
However, that is not the end of the story.
Individuals were able to participate by using HIVE to buy the Cryptobrewmaster (CBM) token. The total cost of the product was going to run 1,650 EUR. People could get involved for a minimum of 234 HIVE (50 EUR).
Here is an article detailing the program.
To me, this epitomizes some of the potential we see with cryptocurrency in general, and HIVE in particular. We have a situation where a group from the Ukraine was able to partner with someone from the States (as well as anywhere else in the world) through the connection on Hive. Since there is a common currency, we could collaborate using HIVE on this specific project. Since there was the CBM token involved, the risk is less since there is still tokens in one's account. Essentially, the HIVE was swapped for CBM.
Even if I was aware of this situation outside of Hive, there is no likelihood that I would have sent the equivalent of 165 EUR. To start, the exchange and transfer costs would have eaten up a great deal of the money. It would have likely cost 5%-10% to complete the entire transaction.
Secondly, the difficulty in completing the transaction, cost aside, also would have been a nightmare. Thus, for such an amount, most would pass.
With HIVE, there is an agreed upon currency that we can interact in. Since the CBM token is tied to the game, there was a second level that would aligned. Thus, the funding of the brewing of the 2,000 liters could be paid in HIVE. Essentially, the CBM token served as a placeholder until the project is complete and the money, along with an expected profit, is returned.
We see one of the central tenets to cryptocurrency in operation here. Notice how there is no 3rd party to validate any of the transactions. The trust of the monies sent was based upon the swap of the tokens which only took a few seconds on Hive-Engine. Of course, there has to be a degree of trust in the individuals behind the project but that is the case in anything. Nevertheless, the fact that the token received is tied to the game which is in pre-alpha right now helps to relieve that some.
This is just one example of the potential that exist within cryptocurrency and Hive. People now have many options at their disposal. By having many different currencies, people can collaborate on many different levels. As long as both parties agree with the currency being used, transactions can occur.
Moving cryptocurrency into the real world is vital. Projects such as this, which bridge the virtual to the real, can provide a road map for others to follow. The Internet achieved a great deal of success when it moved from just the virtual space and become a real world tool that people used on a daily basis.
Crypto is going to make this step also. This is where we will see much greater adoption. The ability to get involved in projects never before possible is brought about by the tokenization of other things. It is here where we see the resources available to involve ourselves in ventures that could, potentially, provide a nice return.
In an economy based upon extraction and scarcity, this is not possible for most. The rent seekers tend to be the only ones able to take advantage of this on any decent scale.
Hopefully we will see others follow suit.
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