Very interesting question, and I guess it’s not a simple one either. I look at domain specific tokens like IAGON something like a bus ticket. It’s not a product, it’s not a currency, it’s a proof of spending that allows you to use a service. Despite the fact that you can trade it, I think it does not endanger general currencies because it is linked to one project so its future is more risky than a general currency like token’s. Does it count as inflation? I’m not sure. Until it proves that you spent some generic currency to buy it I guess not. Do we need them? Can’t we just use ADA for the same purpose? I’m sure there are legitimate reasons where it’s the logical design choice, and I’m also sure there are cases where ADA would be just fine.
I think altcoins are kind of similar. Would bitcoin worth more if there would be no altcoins? Do we need ALL altcoins? Should one rule them all in the end? I guess it’s an amazingly interesting evolutionary process playing out before our eyes.
Last but not least I would add to your list of value factors of ADA. Community and adoption. Since currencies are tools for exchange adoption is an extremely important factor in their value and community is key for adoption.
First of all I would agree, that Community and adoption is an important value driving factor. On the other hand, those two are already partially included in transaction fuel (more transactions = more adoption) and technology (the concepts behind Cardano included the role of the community in a wise).
Thank you, this article is very helpful to answer this question. So in the end, it is possible to pay for an transaction with token x, y, z but only if so. is willing to pay ADA in parallel for token x, y, z - respectively if an PO accepts token x, y, z in a given ratio to ADA. So I guess, the demand for ADA will rise, even if all transactions are paid in token x, y, z. But this works only, if the price of the transaction is measured in ADA, but this seems to be the case.
At the end, I’m satisfied and the door is widely open for a sustainable value growth for ADA (which will eventually result in a higher USD-Price, but that could also be a result of USD-inflation).
As it evolves, the waiting/wondering is hard during the transition toward seamless functionality. And mass adaption. I find it pretty overwhelming- I have so many questions, across so many categories of the ecosystem and a lot of it is way beyond my scope of clear understanding. Your support of incentives during the waiting period makes sense to help increase new adaption. I’m currently trying to wrap my head around staking. Wish I could offer better debate/conversation with your comments…but I need to learn more first about so much of the process Baby steps, I suppose.
In my understanding community and adoption is the value of any currency. Since currencies are abstractions of resources they represent the resources of the community that accepts them as a medium of exchange.
We tend to think about value growth in USD or some other fiat currencies because we are that used to them that it’s really-really hard to value something without them. But as you stated value growth in USD can be the result of the inflation of USD.
If you force yourself to try to value ADA without the help of another currency you will realize that its value is based on the sum of all valuables in the community that accepts them.
Of course this sounds pretty theoretical right now, and at the moment it’s nearly impossible to evaluate a crypto without the exchange rate, but I think we should be very much aware of this if we want ADA to prosper.
Seguramente habrá un momento de inflexión. O de adopción de las criptomonedas o de prohibición por los Estados. En cualquier caso, el valor de ADA hasta que llegue ese momento no puede ser el que es Para mi vale más. No puede estar cayendo por debajo de 1 dólar. No tiene sentido. No digo que valga 10.000 dólares, pero entre esa cifra y 1 dólar hay mucho recorrido: 1 dólar y medio, 2 dólares,… En fin, yo lo veo así
The Cardano (ADA) price is currently trading at $0.3166 with a decrease of more than 3.12 percent in the last 24 hours. The Fintech expert Coinpedia’s Cardano price prediction for 2023 stands at $0.8555. Coinpedia has predicted a price for ADA up to $1.1308 and the lowest price to $0.5993 for 2023.
ADA network has led to an exponential increase in development of the network, as well as a excellent performance on the NFT market. Considering this we can hope that ADA will rebound strongly in 2023.
The demands of SEC against Coinbase and Binance includes ADA.What will it be the effect about the price of ADA?. When will it resolve?. It seems long term.
these time to time up and down i realy dont care much i only look ahead and thats the R&D of cardano since 2017 seen all of it and looking for more to come just buy in @ these insane prices and average out your buying price and stake to get more just hold on🤟
Baby steps, I suppose.