Utility is Benefit, Here's the Explanation in Crypto Context!

There are various terms from economics that you can apply when playing cryptocurrency. One of the terms of economics is utility.

This time, VCGamers will discuss the definition of utility in general and in the crypto world. Come on, see the explanation below!

Also Read: What is Liquidity Ratio? Definitions and Types Must Know!

Definition of Utility

Utility is a term from economics that you can apply to the crypto world as a trader or investor.

According to Investopedia, utility is a term from economics that focuses on the benefits of consuming goods or services.

So, utility is the benefit, satisfaction, and use that you can get from owning an asset.

This tends to be subjective, because an asset can have a different value or different benefits for various people.

Even though it tends to be subjective, if an asset has a high level of benefit for the majority of people, then the asset has very good appeal.

In theory, it is related to rational choice theory. This is because a consumer will maximize the benefits or usefulness of an asset.

If an asset provides a certain level of satisfaction because someone can use the asset, then its utility will increase.

Also Read: What is Proof of Stake? Here's the Explanation!

Utilities in the Crypto World and Examples

After learning about the definition of utility according to economics, here is an explanation of utility when you use it in the context of cryptocurrency.

Blockchain and crypto projects must have benefits and uses for holders to increase utility.

A crypto asset can provide quite high benefits with available services, such as Ethereum.

Ethereum has Blockchains which was useful and used by many projects and started the altcoin wave. Therefore, the price of ETH is very high.

Next, there is Bitcoin which is increasingly popular in various countries thanks to its wider adoption.

Apart from Bitcoin and Ethereum, there are many more examples of crypto assets that have high benefits. Therefore, as much as possible avoid crypto assets that have no benefits.

It often happens that crypto assets have low benefits so they don't last long and the price can drop or stagnate.

Also Read: Tips for Learning Crypto Investment for Big Profits!

How to Measure Benefits

You can measure utility with various measurements, namely total, ordinal, and cardinal.

Utility concept ordinal revealed that the level of satisfaction from consumers or holders comes from their respective preferences. So, the concept of utility measurement focuses on the concept of subjective preference.

Cardinal you can use to measure the level of satisfaction with numbers or prices. So, this method can be more efficient because it directly measures the available value.

There are also concepts total which means the amount of satisfaction one can receive from consuming a particular asset or service.

Thus a brief explanation of the utility and its concept in the crypto world.

VCGamers has released a crypto asset under the name $VCG Token which operates on the Ethereum network (ERC 20) and Binance Smart Chain (BEP 20).

$VCG Tokens has been officially registered at Bappebti or the Commodity Futures Trading Supervisory Agency and the Indonesian Ministry of Trade as crypto assets traded on the physical crypto asset market.

Currently, $VCG Token has been listed on various CEXs or Centralized Exchanges and DEXs or Decentralized Exchanges namely Pancakeswap, Uniswap, BitMart and Indodax.

Not only that, $VCG Token is the official currency in the first metaverse in Indonesia, namely RansVerse with the collaboration of VCGamers, RANS Entertainment, Shinta VR, and UpBanx.

Follow along Update $VCG Token only in VC News.