Earn USDT as easy as 1, 2 3! While Bitcoin Has No Intrinsic Value, Inuko Has Total Value Locked!!
Some people accept that Bitcoin has no intrinsic value at all
Bitcoin is a digital currency that has gained a lot of attention in recent years. However, some people argue that it has no intrinsic value, meaning it is not backed by any physical assets or government guarantees. Despite this, many people are still willing to invest in and use Bitcoin.
One reason why people may be okay with Bitcoin having no intrinsic value is that they see it as a store of value, similar to gold. Just like gold, Bitcoin is scarce and decentralised, which makes it a desirable asset for those who want to protect their wealth from inflation or government control. Additionally, Bitcoin can be easily transferred and stored digitally, making it more convenient to use than gold.
Another reason why people may be okay with Bitcoin having no intrinsic value because they believe in the technology behind it. Bitcoin is built on blockchain technology, which is a decentralised, digital ledger that records transactions. This technology has the potential to revolutionise industries such as finance, supply chain management, and more. By investing in Bitcoin, people may be betting on the success of blockchain technology as a whole.
However, it’s important to note that Bitcoin is a highly speculative investment, and its value can be highly volatile. It’s not a stable currency and it has no underlying assets or cash flow. Also, it’s not widely accepted as a means of payment, and it’s not regulated, which means that it can be used for illegal activities.
What does the total value locked mean?
Since Defi (or Decentralized Finance) became popular in 2020, the experts in the financial market have looked at ways to measure its performance and come to terms with a new type of investment.
Aside from market capitalization, trading volume, and total and circulating supply, total value locked (TVL) is one crypto indicator that is popular among DeFi investors to assess the overall value of assets – in United States dollars or any fiat currency – deposited across all DeFi protocols or in a single DeFi project.
DeFi assets include rewards and interest, coming from typical services such as staking, liquidity pools, and lending, which are provided in the form of smart contracts. In staking, TVL, for example, is a particularly useful indicator for investors looking to support the DeFi platforms with the highest rewards. It is the total value locked in the DeFi staking protocols and represents the number of assets deposited by the liquidity providers.
Why does TVL matter in DeFi?
In order for DeFi platforms to work, they need capital to be deposited as loan liquidity or collateral in trading pools. TVL matters because it shows the capital’s impact on DeFi applications’ profits and usability for investors and traders.
What is crypto backing?
Crypto backing refers to the underlying assets or collateral that supports the value of a cryptocurrency. This can include physical assets such as gold or real estate, or it can be in the form of other cryptocurrencies. The idea behind crypto backing is that it provides a measure of stability and security for the value of the cryptocurrency, as it is supported by a tangible asset or reserves that support the value of a currency rather than just being a digital token with no underlying value.
What is crypto pegging?
Crypto pegging refers to the process of linking the value of a cryptocurrency to the value of another asset, such as a fiat currency like the US dollar. This is usually done through the use of a smart contract, which automatically adjusts the value of the cryptocurrency based on changes in the value of the pegged asset. The goal of crypto pegging is to reduce volatility and provide a stable store of value for the pegged cryptocurrency.
Inuko is backed, not pegged!
At Inuko Finance, each $INUKO is backed by stable coins (USDT: a stable coin that is pegged to the US dollar) assets in the treasury, not pegged to it.
Because the treasury backs every INUKO, the protocol would buy back and burn INUKO when it trades below the backing price.
This has the effect of pushing INUKO price back up.
On the other hand, INUKO could always trade above the backing price because there is no upper limit imposed by the protocol.
Think of pegged as:
Pegged = Backing price
While backed means:
Backed ≥ Backing price
Inuko has an ever-increasing intrinsic value!
Cryptocurrency, like any other form of currency or asset, derives its value from the underlying trust and belief that it holds intrinsic value. One way that this intrinsic value can be established is through the process of backing, which refers to the reserves that support the value of a currency or asset. At Inuko Finance, we have the DAO treasury that receives 1.5% from the tax of every transaction, to continuously back $INUKO and do the buyback and burn when $Inuko trades below the backing price.
Another way that a cryptocurrency can be backed is through the backing of services or products. In this scenario, Inuko finance is already ahead of the game because apart from the current products that it offers, the project will soon launch Inuko Online Store and Payment Solution, a combination of its own products and services. This type of backing provides a different level of intrinsic value for the cryptocurrency, as it is directly tied to the value of the services or products offered by the company.
In summary, the intrinsic value of a cryptocurrency can be based on its technology, adoption, and market demand. Meanwhile, Inuko can gain intrinsic value through the backing, using USDT which is directly pegged to the US dollar. This backing can provide a sense of security to investors and users, as the value of the cryptocurrency is linked to the value of the underlying asset. Additionally, backing can also provide a means for the cryptocurrency to be used as a form of payment or exchange for goods and services, giving it utility and practical value, which will soon happen at Inuko Finance!
With greater visions ahead, we look forward to continuously improving this community project with your undying support of the Inuko Army!
Latest Manga Chapters:
Inuko is a millennial aspiring to become a talk show host or commentator. She looks up to Tetsuko Kuroyanagi, the host of Tetsuko's Room (japanese: 徹子の部屋 | Tetsuko no heya), and hopes to follow her footsteps to make the world a better place for girls worldwide.She struggles while growing up dealing with tonnes of challenges millennials face today. And we hope that her story will help inspire girls from all over the world to strive to achieve their dreams.
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