Cryptocurrencies Are Commodities?
During a semi-commercial argument that somewhat seems lifelong, the definition of cryptocurrencies as a commodity has been widely question by the general public, as well as mainstream finance enthusiasts equally. As of 2015, the Commodity Futures Trading Commission (CFTC) has officially declared Bitcoin as a commodity. The organisation stated the following - “In this order, the CFTC for the first time finds that Bitcoin and other virtual currencies are properly defined as commodities” according to press releases at the time of the announcement two years ago. Public statements like this from powerful financial organisations such as the CFTC allow the users of cryptocurrencies to make significant strides towards international recognition, already being referred to as crypto commodities.
According to CoinMarketCap, a reliable cryptocurrency market capitalization feed, there are now more than 1000 alternative crypto coins, also known as Altcoins publicly trading on various exchanges in one form or another. Due to the recent burst of popularity thanks to its fluctuating movements, ICOs have ensured cryptocurrencies a place within the mainstream media as a whole, attracting investment interest from high-profile athletes such as Floyd Mayweather himself. As of recently, ICOs have faced regulatory talks in the US as well as the ICO ban in China - since crypto commodities are considered a utility, alternative regulations would be necessary in the future.
Further example of an exotic crypto commodity is ZrCoin, the world’s first investment grade product on the blockchain, which directly leverages the manufacturing of one of the most demanded synthetic products in the world - Synth. ZrO2 (synthetic zirconium dioxide). A link as such brings great value to both cryptocurrencies and commodities as a whole. Another similar contender is DGX respectively - a token which represents a single gram of gold. These gold bars have gone through a protocol referred to as Proof of Asset (PoA), now having complete proof of existence on the Ethereum blockchain, however includes a complicated chain of verifications including all parties involved, eliminating complete trustlessness. Commodities as such have dozens of advantages in terms similar to gold’s, but do have their downsides. Bitcoin on the other hand has no sign of this issue, due to it’s complete open source nature.
Additionally, in case of The Deep, once the newly adapted eco-system matures, advantages of a commodity due to in-game land ownership will remain, while upholding all advantages of cryptocurrencies.
Deep, Disruptive Crypto Commodity at it’s Finest
Furthermore, since values of commodities such as valuable synthetic chemicals and gold are placed in decentralized systems, Deep has a new level of security to offer it’s future asset holders. To begin with, user behaviour in a completely new environment such as Deep is almost unpredictable since humans haven’t yet had a chance to experience technology so immersive before.
The world of Deep is backed by a complete virtual world. Due to the technology behind Deep, complete user governance allows the implementation of virtually anything within it’s own economy. Already familiar to users of blockchain technologies or alternatively enthusiasts, deep is not only a platform but a ubiquitous world in itself. There are commodities which are physically present, there are commodities which are relative and there are virtual alternatives such as crypto commodities. The Deep belongs into a new asset category which has not yet been explored before in either the virtual nor the crypto commodity game.
Backed by a Virtual World
Given the existing use of potential within the crypto commodity, The Deep is entering the virtual and crypto commodity sphere at a time of revolutionary change, this change is happening at present. Forgery and falsification of assets is impossible, due to every transaction containing an accurate cryptographic copy of previous exchanges and successions. Accounting for the scarcity and assurance of a powerful network such as The Deep, a new contender is due to disrupt the crypto commodity space. The Deep is not only a disruptive force within the crypto world, but respected contestant in the Artificial and Virtual Reality market. Logically speaking, without the use of decentralized architecture, neither AR or VR has the capability to fulfill it’s full potential as the new age interface with a working virtual economy.
Relatively to modern thought process, a bigger picture is what we are required to look at. Deep as a whole will join amongst the most valuable crypto commodities backed by a virtual world, supported by user incentives directly contributing to the value of The Deep economy itself. Since the value of virtual land is connected to the value of the token, speculative investors are left in a limbo for sure, since Deep has the technology in place to puncture the flow we call ‘the norm’. By using blockchain technology, The Deep has an opportunity to remodel and improve the common financial frameworks represented by current economic systems.
Bringing the first concept of a realized open world platform using blockchain technology, Deep has imaginative features to offer. Users will be able to claim land on a 1-1 token to grid ratio, then again claiming land will not require complete sacrifice of tokens. The DeepGold token’s secondary function is to truly represent Deep’s democratic world by distributed voting power. Deep’s virtual world will rely on the well known laws of real estate economy, users will be able to build, demolish, construct and place in-game services where needed. While one may think DeepGold has the functionality of an in-game currency, it will primarily be used as a land-claiming token as well as a voting mechanism - the in-game currency within deep is gold.
Internal incentives of complex user-friendly products have proven to accelerate the rate of which infrastructures excel at when relying on users, however with a rock hard base value of a token, adequate base structure is achieved prior to mass adaptation. The team behind Deep are looking at an opportunity to percolate not only from a modern, but a pioneering economic perspective.