This is Part 1 of a Series of articles which will give a detailed insight into the factors to consider when investing in the Ecomi (OMI) token in 2022. This Series will give you detailed knowledge about the value creation of crypto currencies, how Ecomi (OMI) will achieve more trading volume, how scarcity is generated for the Ecomi (OMI) token and will ultimately lead up to an Ecomi (OMI) price prediction for 2022, 2023 etc. up to the moment when Ecomi (OMI) will explode in the next Bull run after the next Bitcoin (BTC) halving in 2024. In this first part of the Ecomi (OMI) article series we will discuss how currencies and with it crypto currencies get thair value, what the differences are and ultimately outline the fundamental factors that make Ecomi (OMI) so valuable and a superior investment in comparison to other Altcoins.
Why do currencies have value?
Currencies exist in many forms since the beginning of human trade and interaction. I will not bore you with a huge digress in the history of currencies but it is worth a look which determinants gave value to a certain currency and how some declined to garbage and others where valuable for hundreds of years. It is unclear which currencies were really the first on the face of the earth. Early populations already used clams, goods or gems as currencies but rapidly faced the problem that they weren’t exchangeable at any value breakdown. For example how many gems do you need to pay a rabbit, a handful of nuts or two fresh fishes. And are the values comparable from the rabbit to the fishes. Curriencies as we know them today came long after but had the advantage to make everything comparable with everything and determine the value of everything: work hours, homes, a fresh fish and during dark times even the value of a person.
The first standardized coins appeared nearly 5000 years ago in Mesopotamia but the first really dateable mints are from around 600 B.C in the Guanzhuang province in China and in a minor usecase in the early powers of Lydia and Iona gold and silver coins to pay entire armies. But enough with ancient history, because these coins mainly differ from todays currencies in three fundamental ways: They were only locally accepted, their supply was limited by natural scarcity like gems, gold and silver have and they were not easy to transfer because gems, gold and silver are very heavy materials. So two fundamental changes had to happen to reach the current date: the invention of paper money which made the currency suddenly very easy to transfer over long distances and in the last 20 years culminated in a digital transferability. In the beginning those paper currencies were promises to be able to exchange them into gold or silver at any time at the bank where the money was deposited. The currency was therefore backed by gold to keep it stable. A real stable coin so to speak. The second development was the breaking of this promise not only ocasionally but for good by many governments but most critically by the US government in August 1971. Now the value of the Dollar was a mere promise. The paper now holds the value that all economic participants credit to it, can be printed in masses without having to deposit more gold. The dollar so to say depeged from the gold ounce value as some algorithmic “stable” coins depegged in the last weeks from the dollar value. Money printer goes brrrrr. Not anymore though and that is where we are now.
How do crypto currencies attain value?
The big question now is how do crypto currencies attain value, why are they valuable or not valuable. I would separate the topic of decentralized cash and store of value like Bitcoin and fundamental currency tokens from utility tokens at this point. Let’s look at Bitcoin quickly: The fundamental points are: It is scarce yet widely accepted. The maximum amount of Bitcoin in circulation is 21 Million. Only 21 Million people out of 8 Billion people can be wholecoiners on paper. But technically it is way less because an estimated amount of 5 Million Bitcoin is forever lost from the early days of Bitcoin mining which leaves us with a potential of 16 Million wholecoiners worldwide. The second aspect is it’s technological stability. In comparison to Etherium and other Proof of Stake projects Bitcoin has never been hacked. In comparison to Solanas several network outages Bitcoins Network has never been down and in compar ison to projects like Terra the simple mechanism keeps it from imploding in this sense. Since the Bitcoin ban in china and the mass emigration of mining companys to other places of the earth bitcoin is almost not attackable. The final important factor is: After 13 years of adoption Bitcoin is finally widely accepted: one look into recent news shows it: Gucci accepts Bitcoin, Chipotle accepts Bitcoin, Fidelity trust is adopting Bitcoin, Entire countrys start regulating or adopting it… See for yourself. To sum this up again: a successful crypto currency has scarcity, stable technology and a wide adoption and acceptance.
Is Ecomi (OMI) a valuable crypto currency?
Now let’s get finally to the good stuff: Is it worth investing in Ecomi (OMI) in 2022? Well Let’s analyze Ecomi (OMI) under the previous known criterea. Is Ecomi (OMI) a scarce token? The answer is yes in the sense that it has a fixed supply of 750 Billion tokens. Of these 340 Billion tokens are locked up in the mechanics of the Veve App. 97 Billion Tokens are lost in a Smart contract accident and can never enter circulation, which leaves us with a total circulating supply of 313 Billion Tokens. If we consider a hypothetical investment for every person on the earth there are 39 Ecomi tokens left for everyone. Obviously this will never be the case. The second factor is a burn mechanic and this is the contrary effect of known currencys. Instead of printing there is a reverse effect although I believe that successful tokens do not need the burn effect. We are going to discuss the Ecomi (OMI) burn mechanics as detailed as never before in Part 2 of this series. But scarcity and burns alone can not give value to a crypto currency and will also not give value to Ecomi (OMI). If this would be the case we could revive every dead shitcoin in the market with this easy trick: start burning it and give it a fixed supply. That is not how it works. There are only a few things that can add real value to the Ecomi (OMI) token and that is similar to bitcoin that it is being used and fulfills a purpose. You have to buy Ecomi to then do something with it. One side of this mechanic is that there are things available to buy with Ecomi (OMI) which is very rare at the moment. You can only buy and sell NFTs on selected market places like Immutable X (IMX) and Token Trove. In terms of real currencies you can ask yourself: Would you rather have US Dollars, Euros or the Mozambican Metical? If you are living in the US you would prefer Dollars and if you would live in Europe like I do you would prefer the Euro. Getting the Metical just because it is a currency is not enough. Try to pay with Metical at Walmart. Doesn’t work right? The token needs to be accepted at many places for people to buy it.
But why Ecomi and not every other Token out there?
You need to create the desire in people that they need to buy the Ecomi (OMI) token. Etherium for example is necessary to have to buy most of the NFTs and to mint NFTs. The value of Etherium subsequently exploded. How do we get there? By having valuable NFTs bought and sold in Omi tokens. This is achieved by the Omi Utility Program which will enable Ecomi to NFT trades for the Veve App which we will discuss in Detail in another part of this Series. Now you could say: Well this is a rather depressing outlook for the Ecomi token but the most important part is yet to come. The reason why the Ecomi (OMI) token will be listed by several Exchanges and projects is the power of the community. By implementing the Ecomi token you will get the whole Ecomi (OMI) ecosystem that by itself is linked to the IMX ecosystem. Projects like HRO have already benefited from tapping into the Vevefam by listing DC licensed NFTs which is also a license on the Veve App which is underpinned by the Ecomi token. Likewise those HRO NFT cards can now be bought and sold with Ecomi on IMX. The announcement of the mobile tower defense game Epiko Regal to implement Ecomi (OMI) into their Play to Earn (P2E) system tapped massively into the Ecomi / Veve community. So much that 90% of the top kingdoms on the App have either Ecomi or Veve in their names and an active player base was immediately achieved. The token is valuable for companies and projects and will be subsequently more valuable to community and investors because the token is of use to them.
How Does the Token Value Increase the Token Price?
As investors we want to see the token price increase so that we can take profits and achieve financial freedom with Ecomi. But how will the price reflect in the token? There is a temporary lockup factor – and I am not talking about staking – that also happens with the US Dollar. Whenever you are making a purchase you have to have the cash on the side first. From the time of acquiring the cash on your account or in terms of Ecomi from acquiring the token until the purchase the token will remain on your wallet and therefore the circulating supply will be reduced. You buy the artcle with the Omi tokens and token and NFT switch the owner. The tokens are now in the wallet of the recipient but still not back on an exchange ready to liquidate. If Millions of people act this way the token get’s naturally scarce just by being used all the time and by having little temporary lockups all the time. Let’s say you want to buy Darth Vader with omi in the future but you can not afford it. You would keep saving Ecomi tokens until you can. Let’s say an Etherium wale wants to wipe the floors of the Veve App and Omi to NFT is already active. He would convert 100 ETH into Billions of Ecomi and then start buying. From the moment he acquires the Omi tokens he will put temporary scarcity on the circulating supply. It will just not be one buyer or one whale but Millions acting all the time. There will be rests of unused Ecomi tokens sitting in wallets until they are finally used etc. Let your imagination flow what happens if we reach mass awareness and therefore mass adoption.
Is Ecomi a valuable token?
To conclude everything that we have seen so far Ecomi (OMI) is not yet a valuable token but has some value factors going in the right direction. It is one of the most promising projects in my opinion and most definetly a token to invest in and to accumulate during the bear market 2022.
