Yes, I agree we will see many different crypto currencies.

There are really three types of crypto

  1. Pseudo Shares
  2. Pseudo Currency
  3. Hybrid.

The fact that new ventures can issue pseudo shares to start a new enterprise is great for innovation, but in time, the rip offs will see regulators bring ICO’s into the fold of regulation.

As for the need for different currencies, once the enterprise is regulated it should make no difference if you use a new token to buy the shares or eFiat.

What the crypto community is missing at the moment is while the amount of each new crpto is limited, there is no limit on the number of new issues. This leaves the whole market uncapped in the same way as fiat, but without any way to control the flow of new crypto money coming into the economy. Talk about inflation :)

The biggest problem with most crypto is inflation in the price of the coin (the reverse of fiat which is subject to inflation in the price of goods and services). In both cases, one side gains at the expense of the other. With fiat, the holders of assets gain at the expense of the holders of money. With crypto, the holders of money gain at the expense of asset owners.

What we need so far as currency is concerned is a stable coin. As we improve AI, it will be much easier to ensure the supply of money matches the need to finance transactions

(This would be made easier if only everyone recognised that in order for money to circulate without increasing inflation (after the economy is at full capacity), that what gets pumped in has to be taken out. And since all money aggregates up into the hands of higher paid and the owners of capital, it needs to be taken out at a fixed percentage of expenditure in order to create an equitable flow… but that’s a topic for another day)

What purpose does having lots of different coins for different purposes serve?

Look at crypto now. What are people buying? Either they are buying a share in a new enterprise and/or, they are replacing one currency with another.

In the first case, it is hoped that the new enterprise will deliver new services, increasing economic activity, such that the more people who use the service, the more valuable the share. If it succeeds, this is a win for the investor and a win for the community that benefits from the new activity. But once ICO’s are regulated, why not just buy the share with fiat…why issue an new token?

In the second case, people are buying the token mainly because they think that, with restricted supply and growing demand, simply holding the currency will reward them independent of any increase in underlying economic activity. How does this benefit society?

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    Michael Andrew Haines.

    Written by

    Once was a Seeker