Seeing all these traceability projects popping up left and right, and RWAs continuing to develop using Algorand blockchain, makes me question how the utilities of ALGO would evolve in the long term.
How do you all envision ALGO’s valuation as the native token being played out? Are we all just dreaming for institutions to wanting to run their own nodes and participate in the governance with heavy bags? Degens going all in b/c of a solid narrative? Aside from this and speculative trading, why would these users want to use ALGO specifically and wish for the value to rise or be stable eventually like the rest of us?
Are there any ongoing plans to increase the usage of ALGO from the ecosystem or else?
I think ALGO is going to be what everyone envisions bitcoin to be. The decentralized payment protocol that is used for this new virtual world. If everyone wants to use it, there are only 10 billion tokens. I see a world where the price of ALGO goes up because people are constantly converting their dollars or government currency into a decentralized, permissionless currency like Algorand. Algorand also does permissioned chains too, which I think could play into the token price as well. You are investing in Algorand to have a stake in governance and decide where the money goes. I think we’ll see lots of adoption once there’s a big bad event with a bunch of major blockchains and everything goes down but Algorand keeps on trucking. Could be in a couple years when quantum computing becomes serious. Who knows. But the fact of the matter is, the highest quality product wins out. There’ll be a before and an after period when everyone realizes what Algorand can do and how it can be beneficial for society. The good news is we are currently in the before period. So we have the chance to build the future we wish to see. My 2 cents.
Unfortunately this sentiment doesn’t align with Algorand’s tokenomics today. Technically speaking, why would this occur? “people are constantly converting their dollars or government currency into a decentralized, permissionless currency like Algorand” For what kind of operations and incentives?
What I think is that Algorand is a platform for utility, and aiming for capital gains with the native token ALGO is misguided. In other words, ALGO is merely a utility token for decentralizing consensus and paying gas fees. This is my personal opinion, and of course, I’m saying this while holding a significant amount of ALGO.
Businesses like Lofty, TravelX, Agrotoken, HesabPay, and FIFA utilize Algorand as a business foundation, not for generating sales through ALGO’s capital gains. This is the main point.
Therefore, if you desire capital gains, you should purchase tokens from projects you want to support. For each project, the lower the price of ALGO, the cheaper the transaction fees, which should be beneficial.
The era when blockchain was merely currency is over, and from now on, it will develop into diverse systems. Currency is just a small part of its application, at least on Algorand.
What did Professor Silvio Micali envision when he developed Algorand? He certainly didn’t wish for the current money game scenario. Considering this, I think we can see where Algorand is heading.