This applies to cryptocurrency that distinguishes a coin or token tied to a project from that which gets used as a medium of exchange.
Cryptocurrency can be broken down into the different categories:
- stablecoin (medium of exchange)
- value capture
- non-fungible token (NFT)
- access token
Value capture tokens can operate like a stocks although there is no written or implied claim on revenues, profits or assets. The idea is that, as the value of the project (platform or ecosystem) grows, it will be reflected in the price applied by the market.
Speculation can be a large part of this. It is one reason by value capture tokens are useful as a medium of exchange. The volatility makes it unappealing for payments. At the same time, holders might be unwilling to part with then as they believe the value will be greater in the future.
For example, one is not going to pay $25K for a product using Bitcoin today if the belief that the price of the coin will be $125K in a few years. That is effectively multiplying the cost of the purchased by 5.
Since the start, the fact that currency was in the name of cryptocurrency meant that most viewed it in this light. The challenge was mooning and Lambos played as much, if not more, of a factor. When people are seeking appreciation, they will not being willing to part with it from their wallets.
The idea of value capture also assist development teams to think about applying sensible business building practices. Since the earliest days, many tried to shortcut things by hyping a token or messing with the tokenomics.
Value capture tokens will appreciate, over time, if there is value being generated.
A better way of looking at this is to understand these are digital assets. Some operate best as a medium of exchange while others are a better store of value.