Which of the following blockchain tokens hold intrinsic value? A token used to represent claim on gold stored in a vault A token used to represent ownership of a plot of land A token used to represent a vote about a tech company voting shares A token used to represent a vote about it’s blockchain protocol
Which of the following blockchain tokens hold intrinsic value?
- A token used to represent claim on gold stored in a vault
- A token used to represent ownership of a plot of land
- A token used to represent a vote about a tech company voting shares
- A token used to represent a vote about it’s blockchain protocol
Tokens that hold intrinsic value represent tangible assets that have value independent of the token itself.
For example, a token that represents a claim on gold stored in a vault holds intrinsic value because the gold itself is a tangible asset that has value.
Similarly, a token that represents ownership of a plot of land holds intrinsic value because the land itself is a tangible asset that has value.
On the other hand, tokens that do not hold intrinsic value derive their value from their usefulness or potential usefulness within a specific system or network.
For example, a token that represents a vote about a tech company's voting shares may be useful for governance purposes within that company, but it does not have inherent value outside of that system.
Similarly, a token that represents a vote about a blockchain protocol may be useful for governing the direction of the protocol, but it does not have inherent value outside of that specific blockchain network.
Step by step
Solved in 2 steps
