Two Hundred Million Dollars, Two Three Dollar discussed on Invest Like the Best - Hash Power Ep. 2 - Investing in Cryptocurrencies

Automatic TRANSCRIPT

And it saddens me to see for example wikipedia need to kind of put banner ads on the page looking for two three dollar donations meanwhile we have this project taste posts which has been opensource block chain protocol the just raised over two hundred million dollars in a crowd sale and this is super disproportionate you know in terms of financing and and part of it is that we could pedia creates a whole lot of value but it it doesn't really capture it it doesn't really have a means of capturing it and these cryptocurrency or token protocols can create that kind of wealth but also capture that wealth much in the way that private businesses to so private business like a service like uber the reason people use overs because they like the service and it it helps them out in their daily life well that also enriches guber shareholders and the people who built over ico is verses ipo's tokens versus equity what are the useful similarities for people the rapid their mind around it and one of the key differences a token is basically a scarce unit a so they'll say be an outstanding number of units called at 1 billion tokens and so if you own a thousand tokens you in a sense one way a metaphor like a way to to look at it is that you own one one millionth equity ownership a protocol but really what you own is their right to interact with that protocol so think about if we go back in time suppose there was like an email token and it might cost one token to sent an email and then holding a thousand tokens is really the right to send two thousand emails and the value of those tokens is basically a multiplier on how devalues the ability to send an email and that sort of how i think about the price of say ether are ethereal is when you're holding ether you really have the right tax acute smart contracts and interact with mark contracts and so the value of that ether is based on the expected value of of those smart contracts and being able to interact there.

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