Tokenomics and it's Role in Cryptocurrency Investment.

in hive-195150 •  3 years ago 

Hello Dear good people of @steem-cameroon community. I'm glad to out together this masterpiece to share with you my little knowledge on what tokenomics is and how it helps guides investors in undertaking different Cryptocurrency related investments.
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[Image source][https://www.upgrad.com/blog/what-is-tokenomics/]
First of all, for us to understand what tokenomics is, it would be imperative to understand what a token is.
What is a token?
A token is often refered to as a Cryptocurrency that is basically something of value that is give to people either as a reward for a service done or for a task completed.
Tokens are usually built or hosted on a blochain and a blockchain is simply a modern Decentralized platform that hosts different Cryptocurrencies.

What is Tokenomics
Tokenomics simply refers to the different aspects of a token or Cryptocurrency that gives it value to better guide investors.
In order words, tokenomics simply refers to the uses cases of a particular Cryptocurrency.

Tokenomics guides investors in that the more the use cases of a Cryptocurrency, the better it's chances of being adopted by day to day people and hence the prospect of it's prices rising in the future which means greater returns for it's investors.

Therefore, in your endeavor to venture into a Cryptocurrency or buy a particular coin, always seek out to know the different things the coin can be used for before investing in it because a token with almost no use cases but just hype is most likely to not be a good one.

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