Utility Coin

Utility Coin: Coin known for usability, and functionality. Particularly, Ethereum Platform classify their Ether coin as a utility coin as it is used to “fuel” transactions associated with their platform requirements. These fuel costs are linked to the volatility of the underlying market value of Ethereum. It should be noted the speed of sending a transaction on this platform is linked to the senders threshold for cost. The faster the settlement the more “fuel” required. As the “fuel” is in fact Ether, the transactional costs can vary with speed and market volatility. This equates to the sender not actually knowing how much a transaction costs or even how long it will take.

Examples: Bitcoin/Dash/Ripple/Ethereum/Monero
Usage: Variable due to unusually high volatility
Investment: Unpredictable
Value: Steady increase in market favor
Speed: Depends on platform, Bitcoin 24 hours, Ethereum depends on how much you wish to spend
Downside: Different day-to-day, heavy risk

Last Updated On March 05, 2018
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