Cryptocurrency will remain exchanging asset if not accepted by merchants

in hive-175254 •  14 days ago  (edited)

There are hundreds of new cryptocurrency every months. Now the most popular is defi. I don't have experience investing in defi. I am not intersted in defi because for me it is just a money game. What is the benefit of defi? It is just a money creation in crypto space. Can defi be used for shopping? The best way to invest in cryptocurrency is in real cryptocurrency. Cryptocurrency that is accepted for shoping. Cryptocurrency that is real money that some merchants accept it.

Real Cryptocurrency

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.

While the definition currency is Currency is a medium of exchange for goods and services

Cryptocurrency now is closed to digital asset. There are few cryptocurrency that become currency like bitcoin, dash, eth , litecoin , dogecoin and some others. Those cryptocurrencies become real digital currencies now. There are some retailers that accept those digital money. What about defi and other new tokens based on various networks? They are not currencies but they are digital assets. You can shop electricity power, and phone bill in bitrefill with bitcoin, litcoin, eth and dash. You can not shop with hive or hbd in bitrefill. Dogecoin , a joke coin that become real money now is better than new coins with exagerated promosing values.

A coin or token will be real currency if it is accepted as payment for buying a products and services. When it is only accepted as a exchanging asset, it is digital asset.

A digital asset will loose its value

A digital asset that is back by nothing will loose its value. There is nothing that support the asset to be more valuable. When you buy a house, your asset value will grow every year because the real estate is real asset. A house is a kind of real estate that is worth. What about hundreds of tokens in market. The price will dump after one or two months of listing in exchangers. HODL is a philosophy among traders are correct.

Hodl (/ˈhɒdəl/ HOD-əl; often written HODL) is slang in the cryptocurrency community for holding the cryptocurrency rather than selling it.

Hodl does not mean that the baghodler or bagholders will not sell the coin or the digital assets. They will sell when they will make huge profit in real currency ( USD, Euro or othe currencies). That is trading digital asset. Hodler will not safe their asset for all their life, they will make the asset into cash in fiat because the asset is not valueable for shopping. That means that the digital asset is very vulnareble in value. That is why all tokens and coins that are not accepted as the real payment can not be real assets. I am sorry If I am too psimistic about tokens and new coins that only become tradable assets. When the community leave or sell the digital assets, the assets will loose the value.


HODL is selling tokens at high price. After the hodlers earn high profit, they will find new tokens to HODL again. HODL will not take place in real currency. To make real currency of a coin or token, the currency should be accepted as the payment for shopping, if not the coin or token sooner or later will loose its value.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

This post has been manually curated by @bala41288 from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating to @indiaunited. We share 80 % of the curation rewards with the delegators.

Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.

Read our latest announcement post to get more information.


Please contribute to the community by upvoting this comment and posts made by @indiaunited.

Hello @lebah
This is a good topic for discussion.
I think that very soon we will have tens of thousands of different cryptocurencies, and that many of them will gradually disappear, if they are not used, as they have already been.
DeFi, we are currently in a boom in this regard, I do not know how far it will go, but particularly I continue to bet on the cryptocurrencies.