In an attempt to actively be part of the platform, I will try to post an article once a week to explain topics that may interest the community.
Please feel free to ask any questions in the comments section.
Cryptocurrency value simply explained using Gamification and the Internet
Picture Source: Slate.com
In my last article Blockchain Simply Explained using The Terminator a good question came up by @jadams2k18, "where do crypto coins come in here. Are they part of the blockchain information? Is it an intrinsic part of it?"
Well, great question!
Too often, when we try to compare cryptocurrency to items we are used to, we relate it to fiat currencies. In some ways, cryptocurrency is similar, as the value of this currency is based upon the faith of those that use it. We could get into a large philosophical debate about what the real value of money is, but I'll just let you ponder what money is actually worth if it were not backed by the banks.
Cryptocurrency value also comes from good faith. However, there is one major difference, its value is measured by its functionality.
Let's use Gamification to help explain the value of cryptocurrency
Gamification is the application of game-design elements and game principles in non-game contexts.
It can be easy for us to place value on a system that we use daily. For instance, Reddit users deem that it is worth it to pay $6.00/month for Reddit Premium, which assigns you 700 coins a month to gift to other users, an ad free experience, and access to the r/lounge. For those that do not use Reddit, that seems ridiculous, but that is because the coins are useless outside of Reddit.
Can you think of an item in a game that someone paid a lot of money for?
Or a system that your HR department uses at work to incentivize their employees?
Leave your answer in the comments!
When a new block within the blockchain is made, a miner is rewarded with cryptocurrency. This cryptocurrency is then circulated around the world in many different ways.
In the case of bitcoin, there is a cap to the amount of cryptocurrency that can be mined (21 million to be exact). In the STEEM platform, you receive cryptocurrency as a result of users up-voting a post or article. Try to think of this reward as receiving Reddit coins for posting an awesome post!
Since cryptocurrency can be used for anything that accepts it, the value of cryptocurrency is based upon the faith of those that use and accept it. A lot more people use and accept cryptocurrency than Reddit Coins!
When speaking about the value of Cryptocurrency, think of it as the Internet.
If you were to try and put a value on the internet, it would be much easier to imagine that it would be worth a lot of money. The reason being is that the internet fuels much of what we use today. The movie Ralph Breaks the Internet showed an interesting inside perspective of what the internet would look like if it were a real place that you could visit.
Picture Source: North Shore News
Because blockchain is so secure and can be used within many different industries (healthcare, finance, network security, etc), the value of the currency can be related to that of the internet. Therefore cryptocurrency isn't just a type of currency, its a product of something versatile, functional, and extremely valuable.
It's a product of something versatile, functional, and valuable
Acknowledgments
Thank you to @cmplxty for referring me over to Palnet, Steemit and SteemPeak. Please follow him and check out his content!
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Thank you for that explanation @swayzilla! Makes perfect sense to me; great analogy :) And thanks to @cmplxty for featuring your post in his Pay it Forward Curation Contest entry! Feel free to join us with an entry of your own any week :)
Thanks for answering my question!
I don't play much, but I've seen that lately, games have visually improved a lot since I stopped playing Zelda in 1999. I guess nowadays you have to pay to get the items in a game! hahaha
Of such a system I don't think I've ever heard of, it's usually emotional intelligence and motivational talks to keep them from ending up killing their co-workers. Hehehe
Stay in touch!
haha! yeah, i guess some companies haven't incorporated gamification for everything yet. Thanks for reading my article and commenting!
Thanks for the resteem @cmplxty this guy deserves more exposure for sure. I'm sure you'll show him all the tips and kickflips to get the most out of fucking around and comment whoring on here.
Gamification has taken over so much of the internet its what drives social media and no one's bats an eye now we want to do it but with something that can turn into a tradable commodity and everyone loses their mind.
I think the people who are in crypto are expecting too much too soon while those out of the loop have no idea whats coming. To quote our leader and saviour carlos mantos "We are coming and we are coming in waves, we going to watch this thing go all over the world"
I mean if anything we could all just move to the Marshall Islands they're pushing for a national cryptocurrency to get off the USD, could be a fun holiday destination, pay for all my things in steem
Thanks for checking him out! He's come up with some pretty awesome posts but he can't rival my comment whore level so he's got a long ways to go for that one for sure!
Everyone freaking out and not appreciating the gamification of the crypto space are subject to the programmed freak out I believe. Just a 'don't pay attention to those people' type of scenario while those telling them to do so buy up massive amounts of Bitcoin etc.
Hahah, I didn't know Carlos' name until now but I think @swayzilla will appreciate this dudes enthusiasm.
I love all the meme's that I've seen over the past months about this dude lol some classics.
Marshall Islands sound like a pretty good option to me! Beers and skateboards all around.
If they sell it to you like that, the Bitcoin is sure to reach $100,000
Thank you @chekohler, I really appreciate that.
So true though, gamification does drive everything, and many of us don't even know it.
Paying for everything in Steem sounds like a great future challenge to post about!
There is a game platform that was being developed here but not sure if they were doing what lots of others did and just stole money and upvotes lol I don’t want to tag them but chibera was the project and account name. Haven’t seen them post in months, seemed like a cool MMO though.
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hahah! Sometimes the game platforms can get the best of us
Loving it man, looks like you’re transitioning well!
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As long as I have something to talk about!
You practicing those kickflips for SteemSkate? Haha
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I didn't have a chance to fully read the post last night but this was pretty rad dude. You're now more versed in blockchain than I am lol side business! I was looking into spinning up a Litecoin miner last year but it's so expensive to compete with the other miners.
thanks man. Yeah, well we could always invest in a computer together lol
One of my wife’s friends friends has a litecoin miner I should ask him how it’s doing. The graphics cards on them are insane, nevermind the internet bandwidth they use.
I forgot but I also entered you in the @pifc contest, more people should read the breakdown here!
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Interesting article. Thanks for sharing your explanation.
I found you because @cmplxty featured you in the Pay it Forward Curation contest. Keep up the great work!