Decentralized Finance and Coins – Worth More than a Bill
Author: Jason Dookeran
In almost every part of our Caribbean landscape, a hundred-dollar bill is synonymous with wealth. But some of the cryptocurrency coins that people buy and hold can be quite expensive. Everyone knows (by now at least) that bitcoin is worth several tens of thousands of USD per coin. However, fewer people realize that some of the most “investable” coins are worth a lot as well. CNBC mentions that, in May 2021, Ethereum (considered to be the second-largest cryptocurrency in the world) soared above $4,000 in value. 🤷
Why Is This Important
Most people who get into crypto think that the big money is in buying and holding onto it. Eventually, when de mark buss, they would see their money grow because the currency’s price would have gone up from when they bought it. This methodology used to work well, but with so many coins today, how can you tell what makes sense investing in?
How do you keep from being taken for a sucker? The value in a coin or a currency comes from the value it brings to its financial ecosystem. Ethereum, as mentioned before, is a far cry from Bitcoin in terms of value. However, it’s a more “useful” blockchain. 💰💰💰
Dapps and Usefulness
Remember when we talked about dapps some time ago? * (Decentralized applications = DAPPS.) ETH was the blockchain that pioneered building applications on top of its infrastructure. Today, hundreds of dapps operate on ETH, and they even exchange currency with one another and create their own in the form of tokens.
These tokens can be seamlessly exchanged for ETH and vice versa. That in itself is what makes it one of the most fluid online payment systems around. These tokens are where the real value in investment lies on the blockchain. Ethereum itself has a list of the more popular dapps on the platform that is already established that anyone can check out. The list includes categories like technology, gaming, and finance. And this is where things start to get really real.
In our next article, we’ll cover how cryptocurrency can become real money.
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