Vechain is one of my favourite crypto projects. Anda few people have requested a content analyzing the relative merits and disadvantages of holding Vet or Vthor, and so this content is going to be addressing those points.
First of all, those who don’t know: vet is the currency native to VeChain a utility token, meaning that the original purchasers of Vet at the initial coin, offering were investing their capital for the development of the platform and.
The various associated services and in return, they gained a share of the future earning power of. That platform, as things were designed so that chain, would require any potential users to pay for their desired services in Vthor and, Vet actually produces a Vethor.
Dividendwhich gives Vet a regular source of income. Well, as any potential price appreciation, which may be realized as a platform grows and lands more partners and more adoption over time and then on the other hand. We have free thought which is again the fuel of the VeChain platform you want to use chain services, then you have to accumulate.
Vthorwhich gives it a direct reason to be in demand on a continuing basis before we get any further discussing these currencies. I just want to say that the reason why vet and Vthor are, even on my radar at all and the reason that I consider them to be investments, is because the services which feature provide transmit value to these cryptos as a result of the association and necessary attachment, vet or Vthor on their own wouldn’t be worth a penny, but because they’re fundamentally intertwined with the VeChain platform who have a large amount of genuine use and real-world adoption.
This means that in my opinion at least, both vet and Vthor have real value, which is, by the way, a lot more than can be said for the majority of altcoins out. There today who have none of the adoptions and therefore crucially none of the earning power to repay investors over time.
In fact, in most cases, they are propped up by speculation and the price can’t keep rising indefinitely if the project itself is growing, and so that will give you a bit of an insight as to how I think, as an investor in this space, also, if you’re not yet subscribed to our channel And you’re enjoying this content, so Fari wants to ask you to subscribe to our channel so that we can keep growing and I can spend more time producing these content.
But anyway moving on to my personal opinion. Is that while I wouldn’t mind owning both, and maybe that would be a wise decision, I personally prefer owning Vetas vet is a producer of Vthor dividend, but Vthor cannot produce vet and it’s a bit like asking whether.
You want to buy the egg or buy the chicken and as a long-term investor. I can use the staking yield to buy more VET or diversify into other cryptos or stocks. Another point is that because all of the VET in existence has to produce all of the thought that is in demand from VeChain users no matter.
How much the adoption of VeChain grows all of that value will be captured by the whole supply effect and considering that the supply of VET is fixed at a maximum level of around an 87billion units, my holding value and the earning power of my vet in terms of producing that Vthor dividend will Grow with the demand for the VeChain platform, for example, let’s say that over the next five years, the demand for VeChain services grows tenfold and that during the same time, period the demand for Vthor grows by the same proportion. Now there are two ways in which featuring could deal with.
The surging demand. Number one is that they allocate 10 times more Vthor to each vet. Dividend to increase the supply in line with demand and so we can assume that the price of vet will remain roughly the same as by increasing the supply in line with demand.
You want to upset the ratio of supply to demand and keeping the price very steady now. The other thing which featuring could do is keep the dividend, the same in unit terms and allow the demand to grow and make vital more expensive but, then lower the prices of their services.
To again. Make sure that the ratio of supply to demand isn’t changed in real terms? Now you may have noticed that in the one case, if VeChain decides, to allow the value of Vthor to rise by not increasing the Vthor dividend, as the demand for Vtho grows then Vthor will very likely grow in value but if you chain decides to continually increase the supply of thought to Match the demand, the value of every single unit of Vthor probably won’t rise at all, but in both cases, the owner of VET will win because regardless of whether there are fewer units at a much higher price or many units ASA lower price.
In each Vtho dividend, the owner event still captures the same amount of value and, not only this but as the earning power vetgrows. It’S likely that the price will grow as well-meaning that the owner of VET will likely benefit from the long-term value, appreciation and capital growth.
Just as over time, the dividend and income of stock grow as the company reinvests and develops new product lines and goes into new businesses. The value of the stock rises in line to reflect the earning power of the business, and so, in my opinion, owning VET is equivalent to owning a part of the tree and, any fruits that it may deliver.
The future in is proportion to the size of my holding whereas Vthor is like owning the fruit itself personally. I prefer to own the tree, but that’s a reflection of my investment philosophy. And the way that I think and other investors may prefer v thought, which is absolutely fine let me know what you prefer in the comment section below.
Read More: VeChain (VET) & VeThor (VTHO) Explained