AnalysisMagically Predicting the Future

Check This Chart Before Deciding to BUY Anything in Crypto

This has been my favourite chart to check almost every day for the last few weeks:

The fees listed above are what users are paying for transactions and other services that are offered by the crypto-coins and the Defi contracts (mostly Uniswap and Sushiswap).

Does it imply one protocol is “better” than the other? No. Does it mean that one is more “popular” than the other? Again, no.

But fees mean revenue. Fees mean money in the pockets of developers, investors, and stakeholders.
Cryptocurrency coins, tokens, contracts, protocols, and whatnot aren’t created by magical elves working in a computer wonderland.

They are coded –created— by real people who have bills to pay.

With more fees –more money— in the long run, you get more developers working on the project. Full stop.
For the sake of comparison, let us look at the transaction volume of the most popular crypto-coins
Let’s pick a random coin off that list. How about Cardano?

It has a market of more than $3 billion USD. Supposedly, the :”real” daily transaction volume was $46 million.

Fees generated from that transaction volume? One hundred and nineteen dollars and thirty-five cents.

So tell me, how are Cardano developers paying the rent this month?

But let’s not pick on just Cardano. As you go down the list, it’s striking how “popular” altcoins with very large market caps don’t generate any revenue.

For any cryptocurrency, transaction volume can be easily faked by using such tricks as “wash-trading.”

Market cap can be pumped up by locking up coins creating artificial scarcity.

But transaction fees? Where people actually use real money? Not so easy.

An argument can be made that high transaction fees are not what people look for when they want to use a coin for transactions. That doesn’t really resonate with me as an investor.

If somebody is paying $5 in gas fees to execute a contract on the Ethereum network but it only costs 10 cents to transfer some lumens on the stellar network, what does that tell you about the true market value of the respective networks?

It’s been three years since the great bubble of 2017. Most of these coins have been around since then and even before (Litecoin has been around since 2013).

When I first became interested in crypto in 2013., nothing was generating “revenue” (except for bitcoin).

But it’s 2020 (SEVEN YEARS) now and my patience is running thin with coins that offer “great promise.”

If the coin( token, protocol, whatever,) has a BILLION-dollar market cap but doesn’t generate fees, I don’t really care about it at all, let alone invest in it.

DJ

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