So you may have looked at the title and think I'm crazy for stating that all Ethereum contracts will go up ten thousand percent in five years, but just read the whole post and decide for your self. I would also like to preference that this is assuming that there is no black swan event and everything goes according to plan.
The Token Card (TKN) Scenario
For those of you who don't know what Token Card is, the basic way of putting it is you can spend your Ethereum contracts by loading the contracts you want to spend on a Debit card, and when you use the Debit card it automatically converts the Tokens to money.
What is an Ethereum Contract
But wait Crypto Wallet, what is an Ethereum Contract? Well, I'm glad I pretended to be someone else and ask myself. Well me, put simply, an Ethereum Contract is a Token that is built on the Ethereum Network. A couple of good analogies would be Ethereum is like your phone and a contract is an app on the phone, or Ethereum is the internet and a contract is a website. See Below all the Ethereum Contracts (more to come as ICO fever kicks in)
The Impact
One thing I didn't mention is that for every purchase, 1% of the total purchase goes into a vault and is out of circulation. What happens is everyone with a TKN token can decide to destroy their token to get a portion of the Vault efforts, meaning if there are 10 TKN's, you burn one TKN token to get the money in the vault, you get 1/10th of the Ethereum Contracts in the vault.
Below is an example of how it works from the TKN Card White Paper
The thing is, as TKN becomes more main stream, instead of paying capital gains taxes, people are going to try and game the system and use token card. This means instead of pay 30%+ capital gains taxes they would only pay a 1% purchase fee, which in reality is a good deal. As more and more people use the TKN card, there will be less (Digix, Round, Augur, ext...) on the market causing the price to go up (not to mention people will lose their TKN tokens and won't be able to claim their rewards, causing more Ethreum contracts to get trapped).
My prediction is that within 5 years, without an exponential growth in market cap, that the price of all contracts will be significantly higher due to this factor. What do you thing? Let me know in the comments below.
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