Ethereum update: Ethereum ELI5 (pardon me) question: what gives the Ether Token value?
Hi.
I am sure this has been asked (I did search – saw some results), but would be happy if someone wants to engage:
If a blockchain is meant to be a censor-resistant, valid system of trust between two parties, and assuming that this system is NOT meant to be seen as MONEY – then why is it that people are holding ethereum?
I wished I could have phrased this more succinctly.
Another example: if I need to use the eth token to pay for a CryptoKitty (let’s say) that I like, and I don’t hold eth, then I would need to purchase eth from the open market (Coinbase) in the amount needed to fuel the ethereum blockchain (right?). This goes to the miners. Now I go and buy the CryptoKitty (which is denominated in USD) and the seller of the CryptoKitty also receives this in USD.
In the process, eth was only used to pay for miners. That’s the price the user (me) is willing to accept as part of his desire to purchase the Kitty.
But why is Eth tokens valued so highly then?
Thanks!
About Ethereum
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.
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