Hey guys! I'm very new to the Crypto world and I need to read up on more research. But you definitely address some of the questions I've had with ALGO and its tokenomics. The way I see it, is that BitCoin is basically how gold was valued back in the day and how dollars were tied to it. The current US dollar isn't backed by gold (fiat) and that's why paper money can be printed as much as the government wants which leads to inflation. There is an infinite supply of printed paper. With Bitcoin, this isn't the case as a value has been established through proof of work (mining) in a blockchain environment.
In my honest opinion, the next 10 years is going to revolve around a transformative economy where money is going to be backed by Bitcoin. But similar to gold, I wouldn't carry around pounds of gold in my wallet, and not everybody has a need for gold within an exchange of goods. I think the next step after that is figuring out what is a common currency that can be established to represent a value of bitcoin that isn't inflatable. That's where stablecoins come into play. Transactions will be made through an exchange of stablecoins, backed by Bitcoin. So, if that is the case then coins like the USDC that's decentralized but somewhat regulated could be one of the most accepted cryptocurrencies for everyday transactions.
So where does ALGO, come into play here? This is something I really am curious about and will affect my future investments. From what I've read in this sub (y'all are the fuckin best, and smartest!), there's many different end games that you guys have been looking forward to.
1. A MASSIVE increase in the cost of an ALGO
1. a. one question I have is, where does that price hike come from once/if it ever becomes uncorrelated with BitCoin? What is the practical use of carrying ALGO coins given it isn't a store of value.
2. b. It seems clear that ALGO isn't the coin for everyday transactions, and that it is a utility token. From the many many many help...
On February 25, the Algorand price broke out from a descending triangle. However, the increase was short-lived and Algorand has decreased to pre-breakout levels since. Algorand (ALGO) Price Highligh...