Crypto Coins and Crypto Tokens

For all practical purposes Bitcoin is the standard for crypto currencies. There are hard forks (code changes resulting in alternate blockchains) of Bitcoin such as Bitcoin Cash, Bitcoin SV, Bitcoin Gold, Bitcoin Private and others that have code changes to make them faster, more secure, more private, etc. However, to the average person they all sound like impractical, needless technology that only has a “get rich quick” appeal.

There are also crypto currencies like Ether that are used to pay for use of the Ethereum blockchain. Ethereum allows others to create their own currency (tokens) using smart contracts and use that currency to pay for various types of services or products within an app or company ecosystem. But why does anyone need a crypto currency and what are the real use cases that give it monetary value?

Crypto is Blockchain but Blockchain is not Crypto

Many people confuse crypto currencies with blockchain technology. Blockchain technology and crypto currencies are not the same thing. Crypto currencies are just the most popular use case of blockchain technology. So what are the best use cases for crypto currencies only? The focus of this article is solely on the Ethereum blockchain’s crypto currency called Ether. Ethereum is the most popular blockchain for tokens and dApps (decentralized applications). It is also the blockchain used by the Speed Shopper app which we will discuss later in the article.

Fiat is an Effective Medium of Exchange But…

Currently most of the value tied to crypto currencies is speculative. That is mainly because fiat (currency without intrinsic value that’s been established as money) currency has proven to be quite effective as a medium of exchange. However, fiat currency is highly regulated and controlled by governments, which allows them to control commerce. This limits the economic freedom of those who wish to participate in activities that the issuing government does not approve of. This notion leads me to a few practical use cases-

Illegal activities — The illicit Silk Road site that was popular on the dark web was a perfect example of how crypto currency was a good use case for the purchase of illegal goods. It allowed anyone to purchase illegal goods without the authorities being able to track the buyer or seller.

Decentralization of the Control of Commerce — this use case is undoubtedly connected to the former. Since there are many who feel that governments have abused their control of commerce, the idea of decentralizing that control makes crypto currencies a popular alternative to fiat. There are various projects that have stemmed this idea. For example, a decentralized bank that loans funds to others.

The last use case I will mention is quite obvious and is for all practical purposes a necessity.

Funding the use of the blockchain (transaction fees)— This notion is still based on the idea that the crypto currency has monetary value. However, the majority of this perceived value is created by the fiat that is pumped into it. The problem with this model as a medium of exchange is that once the fiat is pumped out of it, the value of the crypto currency deflates. If a crypto currency’s value is based on the value of a completely separate fiat currency, is it really a standalone currency or is it just a mask for a fiat (government controlled) currency?

When the idea of a coin market cap and assessing a dollar value to crypto currencies became accepted practice for assessing value, Bitcoin and its successor coins became more or less the mask for fiat currencies. If Bitcoin is simply a mask for fiat currencies then the only “daily use” crypto currencies are those pegged to the value of other fiat currencies such as Tether (USDT), TrueUSD (TUSD), etc.

With this belief holding true then the only crypto currencies that can have standalone value free of any fiat currencies are coins or tokens that are being used as a medium of exchange prior to any exchanging of them for fiat currencies. Many tokens created using smart contracts are a good example of this mainly because the value of the tokens are based solely on the value of the ecosystem created by the app or company. There are other factors, but essentially the value of these crypto currencies are based on the supply of the tokens and the demand for the product or service in which these tokens serve as the medium of exchange.

If tokens or coins are listed on exchanges, which allows speculation to assess value prior to having any real value, then they run a high risk of falling victim to being masks for the fiat that has been pumped into them.

Crypto Token Ecosystems are Like Small Countries

If done properly the creator of the tokens ecosystem can control the value of their token in a similar fashion to the United States Federal Reserve Bank. With the exception being transaction fees of the parent blockchain (Ethereum). This is done by increasing the supply of the token on the open market to lower the price, and decreasing the supply of available tokens to raise the price on open markets.

Ultimately the price for the token is set by those who accept it for goods and services. If the creator of the token has the ability to set a base price for the token and get merchants to agree to that base price then the value of the token would most likely only go up assuming proper restrictions are placed on the supply of the tokens.

How Can the Right Token Send the Price of Ether Skyrocketing?

Tokens need Ether to move on the Ethereum blockchain. High transaction volume tokens use a higher amount of ether. When the demand for ether increases the price will go up.

Why Ether isn’t Currently More Valuable

The supply of Ether is ever increasing as there is currently no cap. Ether is currently being paid to miners who verify and add transactions within blocks to the blockchain.

Why the Price of Ether Will Go Higher in the Future

As the supply increases and is being paid to miners for using the blockchain, the current proof of work model serves as a limiting mechanism for the total number of miners. This means that as mining becomes unprofitable (cost of mining rig and electricity greater than block reward value) there will be less miners. The big mining rig operations with deeper pockets will be left to monopolize mining. This could be a good thing because what’s important to the Ether price is what miners choose to do with their block rewards. If they choose to immediately sell in order to cover costs, that will further decrease the value of Ether. However, when more people choose to purchase Ether to power the tokens used by their token ecosystems the demand and price of ether will increase relative to the mining cost and supply of Ether. Miners will be more inclined to hold on to their ether in hopes that they can sell it for a higher price.

Speed Shopper’s Token Will Increase the Price of Ether

The Speed Shopper app distributes crypto tokens to regular everyday people, not just crypto enthusiasts and investors. In order to use this SSTX token the users must have a small amount of Ether. This creates a demand for Ether and will cause the price to rise.

How Will Speed Shopper’s Token Value Remain Stable?

Driving up the price of SSTX is not a goal of Speed Shopper, but a gradual increase of the value of SSTX is expected as the max supply is set to 500 million. Speed Shopper can prevent wild fluctuations in price by expanding and contracting the token supply on the open market.

Will Proof of Stake Boost Ethers Value?

If Ethereum does eventually move to a Proof of Stake Blockchain. The price of Ether would most likely go up as well due to the reduced cost and reduced technical knowledge for the forger (miner). Forgers would already be people with means due to how the POS system works and they would be less likely to immediately dump their earned coins to cover high cost of mining like POW miners frequently do.

Will the Price of SSTX Increase?

As the demand for SSTX increases due to the increase of those willing to accept it. The price of SSTX will increase on the open market and the base price that is set by the app will also be increased. This might encourage those who have it to hold it and those who don’t have it to desire it. The goods and services provided within the Speed Shopper app combined with the 40% discount given to advertisers who use SSTX will serve as a motivator to spend Speed Shoppers tokens and maintain the stability of the tokens value.

How to Obtain Speed Shopper Tokens (SSTX)

There are currently 4 ways that you can obtain SSTX.

  1. Download the free Speed Shopper app and as you are shopping add the aisle numbers of the items on your shopping list (100% Free)
  2. Purchase them using Ether or Bitcoin, or Stripe from the ICO site https://www.speedshopper.io (Temporary ICO Discount Rate $.10)
  3. Buy them using Cash App or PayPal( Email info@speedshopper.io for these payment methods) (Temporary ICO Discount Rate $.10)
  4. Signup to become a Merchant or Advertiser on our platform (https://www.speedshopperapp.com/app/auth/register)and you can purchase them using a credit or debit card. (Regular price currently $.25)

After the ICO ends, there will only be 2 ways to obtain SSTX tokens.

1. Adding aisle numbers to your list.

2. Become a Merchant/Advertiser and purchasing them. Speed Shopper has no plans to list the token on exchanges unless the demand for the token justifies the need to place some in the open exchange market.