1 min read

Utility = value

Bitcoin is "a store of value" according to some. But that utility is strictly financial. You might be able to spend bitcoin to buy goods or services (in some places), but if you believe it's increasing in value you don't want to spend it. So, you buy bitcoin just to hold it.

Ethereum's token has utility. It's meant to be used to pay fees to run smart contracts. Its value is tied to demand for that service. If there are X millions of people that all want to run smart contracts on Ethereum, then they all need the token to do so. This creates demand.

Koin is a voucher to run smart contracts forever.

Here's an analogy: Ethereum is a restaurant where you pay for a meal. You have to keep paying every time you come back to eat. Koinos is a restaurant that sells coupons that entitle you to a free meal every few days.

For my money, I'd rather have the coupon.

More tomorrow,


P.S. This week on the podcast, I talked with Nathan Caldwell (blockchain architect and co-founder of the Koinos Group) about Koin tokenomics and building accessible devtools. Available wherever you listen to podcasts.