Understanding The Huge & Important Difference Between The Potentially Massive Demand For A Utility Token Like Fenix And A More Investor-driven Coin Like Bitcoin

Who on earth hasn’t heard of BITCOIN by now?

The first and most famous of the cryptocurrencies has arguably had BILLIONS of dollars of free publicity.

And along with bitcoin, the use of cryptocurrencies in general has risen, it would seem, exponentially.

So how many people have a cryptocurrency wallet? It might surprise you to know that although the escalation in numbers has been steep, the total number is NOT that big.

The total is just north of 68 million. That’s not so many. After billions of dollars of publicity.

Most bitcoin wallet holders hold a fraction of a coin.

None of this is especially surprising.

Because when you have an investor-driven market, the identity of the investors change a lot with turnover of the coins (or shares) but the investor numbers may not grow that dramatically. Indeed the BITCOIN wallet holder growth is principally because of the increasing understanding of and knowledge about cryptocurrencies. When that knowledge is not spreading so dramatically, bitcoin wallet numbers are likely to settle down.

By contrast, a utility coin like FENIX is an entirely different proposition.

FANS need FENIX coins to transact with BANDS.

After we open China, for example, and IF we do our job well (which we are convinced we will) we expect in the next year, to have tens of millions of fans, many of which will hold FENIX points (the equivalent of COINS in Chinaand for which COINS will be taken out of circulation).

The FENIX coin holder base will not remain static, nor will it increase slowly.

Every band that signs on, will involve more FENIX COIN demand for their fans.

Every COUNTRY that signs on could involve million or tens of million extra FENIX coin holders. This should result in continual and potentially dramatic increases in FENIX WALET holders and demand for FENIX COINS.

And assuming FENIX has traction (without it we have nothing) EVERY DAY THAT GOES BY will see MORE FENIX COIN HOLDER WALLETS and every MONTH THAT GOES BY should see SUBSTANTIAL INCREASES IN FENIX WALLETS. And this could keep on escalating for years to come. Month to month, the FENIX coin scarcity increases if fan numbers continue to increase.

One can argue how quickly the FENIX COIN becomes scarce (we think within a year) and what impact (IF ANY) that has on price BUT what seems unarguable is that if we have TRACTION (which we are very confident about) SCARCITY will occur in time.

And this is the HUGE potential of a true utility token. VERY different to an investor-driven market., The primary demand- in all likelihood creating scarcity is created in the ecosystem- from USERS- not just by investors. And to the extent that the number of USERS overwhelms the number of speculative investors, we think this gives a utility token a major advantage over simply a speculative trading market in coins. We think this advantage translates into greater STABILITY, greater protection from downside and ultimately greater SCARCITY which IF achieved MAY auger well for the FENIX TOKEN trajectory.

Please also see my article on the RCO:

https://fenix.cash/blog/a-compelling-case-for-another-blockchain-acronymthe-rco-is-born/