One of the basic law of economics – the law of supply and demand – states that the price of a product inevitably goes up as demand for the product grows, while the supply of the product is limited. This is one of the main factors behind Bitcoin spectacular price soar – Bitcoin software limits total Bitcoin supply to 21 million coins, the figure which will be reached in the year 2140. Therefore, many people expect Bitcoin to grow more and more, as Bitcoin approaches its maximum supply limit and more people come to use Bitcoin.
But why exactly people use Bitcoin? What makes them invest in Bitcoin and hold that cryptocurrency? There are various reasons to this. First and foremost, Bitcoin, just like any other cryptocurrency, is a medium of exchange, and a very convenient one – at the moment, the payment process is relatively fast, anonymous and reliable. Second, people hold Bitcoin for speculating on its price, thereby “longing” Bitcoin, which adds a lot of market value to it.
Ethereum and Ethereum-based tokens are very different from Bitcoin – they are more functional, as they can be used for consensus-based programs – “smart contracts”. These programs, which run directly on the Ethereum network, provide an opportunity to create decentralized applications that utilize Ethereum-based tokens as a unit inside that program for any imaginable purpose. There were applications that used a token as a data storage unit, as a real-estate share or even as a unit for betting .
Most of these tokens are created with limited supply. Now, factor in the law of supply and demand. Supply grows as more people demand tokens needed to use an Ethereum application – store data, buy a “share” in a company or place a bet. At the same time, supply stays scarce and immutable – much like gold – thereby causing a price to grow linearly.
In case of Genesis Vision Token specifically – supply is technologically limited at 40 000 000 tokens. However, the architecture of Genesis Vision platform is structured in a way that these tokens will be the only gateway to use the platform. GVTs can be bought via many ways convenient for the buyer – Ethereum, Bitcoin or direct credit card payment. Acquiring of GVT is a quick and paperwork-free progress. The scope of potential participants is practically unlimited, as Genesis Vision project is decentralized, open-source and serves the global market.