Hi, I’m just learning about Chainlink (I know a bit late, nevertheless better late than never). Seem like a great project links the physical world with the Blockchain. Great, probably a dozen of use cases. However, I wonder what do I get fundamentally when I buy the coin? Say that Apple is a great company. Buying a Apple sticker or a symbol for apple wont earn me any money. Whats the reason I will earn money buying Chainlink other than somebody else wanting to buy it for more at a later time? Is it scarce, similarly to Bitcoin? I guess this question apply to all altcoins. Insights anyone?
I’ve been looking into this since noticing your post, taken me a while to get through the whitepaper (which I would advise you do before investing in any altcoin). The point of the Chainlink token (and most altcoins) is for use with the actual contract. In the Chainlink smart contract, LINK is used to reward and incentivise oracle providers for good behaviour. The reason you would want to hold it is because you believe it will be used by a large number of people, so the tokens will be in demand, leading to an increase in the price. Other than that or wanting to use the contract in the future, I don’t see why you would want to buy it, but I’d say that also stands for the vast majority of Altcoins. They’re not meant to make money for hodlers, they’re meant to be used in the contract in most cases.
HI Ciaran, thanks for your answer. It just made me smile. How many do you think read the white paper before they buy and how many buy to acctually use it and not in speculation. But thanks, I’m slowly approching closer and closer to the sense od altcoins.
Hahaha yeah virtually no-one i imagine. I’m still occasionally guilty of it, but i try to stop myself buying until i’ve read it just to stop me spending all of my money on huge numbers of them XD. Much better to actually understand the project though and stops me bailing too soon if I time my entry wrong and it goes down a lot
What are your thoughts on Chainlink now?