Las Vegas Objective
Convert state currency to casino tokens backed by nothing but by giving people hope that they eventually will become millionaires and marketing the belief in movies.
Let people speculate with tokens and eventually will lose their state currency.
Control tokens by restricting conversion back to state currency if they mange to beat the system and by stealth manipulation of the casinos machines.
Free test bed for wall street’s speculative derivatives backed by nothing to manipulate the price of physical assets and commodities.
Pump dopamine and negate ownership of assets and resources (Possession is nine-tenths of the law).
Billion Dollar industries backed by shunya and based on beliefs
1. Las Vegas - People will eventually become millionaires by speculation.
2.Astrology & New Age Spirituality - People can negate their past karma by gazing the stars, just meditating and paying cash to fake gurus.
3.Celebrity Cult - Celebrities and the Billionaires are the happiest people on this planet.
Utility based tokens & its value proposition
Any smart contract based blockchain backed by POS (Proof of stake) and software is a utility based token. Ethereum is an utility token because of its smart contract .Few examples of its utility are pegging national currencies as stable coins. providing name service and funding new and open source projects.
On the other hand stocks are backed by physical goods . For example apple stocks are backed by the production of iphones and macbooks & their utility. Amazon stocks are backed by warehouse, data centers, delivery fleets & their utility.
Since the stocks are floated by centralized entities they are considered as securities and regulated. The reason for regulation is that central entities can’t be trusted and rate of collusion is very high.
Let us analyze how the utility that creates value of a so called decentralized utility coin in the early phases erodes its value proposition in the long run.
1.Ethereum enabled the stable coin tether now the 24h trading volume of tether is 3x that of ethereum.
2.Ethereum enabled funding for a new project called binance chain because transaction costs on ethereum was too high now the 24h trading volume of binance is 10% that of ethereum.
3.Ethereun enabled Defi like uniswap which enabled speculative derivatives, front running bots and zooming MEVs (Most Extracted Value for miners).
4.NFTs & Memecoins (speculative, pump and dump tokens). Let’s say x memecoin is $1000 during pump phase, the entities who mint these tokens convert 10% of these tokens to ethereum and leave the rest 90% to be dumped eventually. These tokens are backed by nothing and in the long run it debases the utility and value of ethereum. Cryptokitties backed by AI generated images and digital degens.
In Las Vegas if we enter a casino we have to get tokens that cannot be used outside that casino because it is centralized and controlled by a corporate entity. But in a de-centralized casino anybody can create any speculative token or meme coin backed by nothing and convert it into a security or an asset.
Funds hacked from smart contract compatible Blockchains
Timeline of DEFI exploits is over 4 Billion Dollars till now.
Summary
In the long run utility based coins eventually erode the value proposition of the entire utility based smart contract eco-system and its credibility proving that it will become more fraudulent than the centralized state based fiat currency.
The trajectory we are following is migrating from a centralized evil with a state and names accountable to some degree to a Decentralized evil (Devil) with no name, no state and accountable to no one under the providence of AI.