In cryptocurrencies circles, the art of creating a token that has both a practical use and a consequential appreciation in price is called ‘tokenomics.’ A common example of a real world token is arcade tickets. The tickets are first ‘printed’ and either given or sold to the player. The player then uses the tokens to play games, during which the arcade recuperates its tickets for providing the games. On occasion the players can also purchase toys with their tickets. The arcade then either reuses the tokens or issues new ones to keep the cycle moving. Ultimately, the arcade has full control of the supply of arcade tickets outstanding and can choose to increase or decrease the supply at any time from the arcade ‘treasury’. The tickets have
The function of money has always only been that of unit of account, and the vast majority has at anytime just existed as ledger entries. What these ledger entries represents is the sole thing that matters, and also simply an expression of the record owners value/time preferences. The confusion here is the indoctrination into the pseudo-science of economics in general, and Jevon's 1875 definition of 'money' in particular. The latter only refers to commodity money, which was at no time relevant for economic activity at scale. -- https://hackernoon.com/the-fallacy-that-is-cryptocurrency-ya3u36q3
The function of money has always only been that of unit of account, and the vast majority has at anytime just existed as ledger entries. What these ledger entries represents is the sole thing that matters, and also simply an expression of the record owners value/time preferences. The confusion here is the indoctrination into the pseudo-science of economics in general, and Jevon's 1875 definition of 'money' in particular. The latter only refers to commodity money, which was at no time relevant for economic activity at scale. -- https://hackernoon.com/the-fallacy-that-is-cryptocurrency-ya3u36q3