“Quantity cannot be the basis of value if the base quality does not have any real content.”

What makes a cryptocurrency valuable? Giving one definite answer to this question is impossible since, if we strictly stick to the functionality of crypto-utilization, the economic value of it is continuously decreasing. The primary role of cryptocurrency utilization is currently being played by exchange market speculation.

How much is a project worth which possesses a well-elaborated whitepaper and can be traded on a token basis on the exchanges? The answer is pretty simple: it is worth as much as people are willing to pay for it on the market. So, what is the real value that lies behind these activities? Normally, products are supposed to represent some type of value. In the case of cryptocurrencies, this value is the blockchain.

What can the people who invest in projects that do not carry even the slightest shadow of any technological innovation expect? It is guaranteed that projects of this sort, in the long run, will only make these people experience losses. I am not trying to suggest that all token-based projects will eventually become completely worthless. However, I do want to state that 99% of these projects are incapable of showing any real results in terms of technological innovation.

Two factors define the value of cryptocurrencies. One is the price determined on exchanges, and the other one is the market cap. Do these numbers actually reflect the reality that investors desire? This is an utterly complex problem because if we only wish to be traded as “play money”, then the current approach is fine. However, if we consider the principles set by Satoshi Nakamoto as our starting point, then we need to see how far away we have gotten from those ideas/visions that originally inspired the establishment of Bitcoin.

Unfortunately, the main competition between cryptocurrencies is fundamentally happening in market exchange speculation instead of measuring their technological excellence. Perhaps it is because of the fact that most projects are unable to produce any technological results. Needless to say, the situation is far from appealing because it is bringing a business approach to the cryptocurrency market that does not serve the long-term objectives of the blockchain. It is safe to say that exchanges and listing sites have the most prominent power and influence on today’s cryptocurrency market; something that comes with great responsibility.

Many people treat cryptocurrencies as money, but what money needs is stability. This stability, however, can only be achieved at the expense of extreme speculation. Regrettably, the biggest benefit of cryptocurrencies is also one of its most significant drawbacks. Making a profit is not that difficult, but it is also extremely easy to suffer an excessive amount of loss due to the hectically fluctuating exchange rates. Cryptocurrency is currently much more of a speculative product than a means of payment which carries economic value.

At the ILCoin Development Team, we are convinced that the most significant aspect is the delivery of technological innovations whose utilization allows for economic and social benefits. Decentralized Cloud Blockchain (DCB) is a new opportunity that opens up new dimensions in data storage. The essence of the system is to obtain transparency and security while providing value for people in return for their money which, in fact, makes it rewarding when the platform is being used.