Eli5: How exactly do “memecoins” make money ??
In: Economics
Anyone can get a computer generating a blockchain ledger very easily. If you can convince someone to pay you money to increase their number in that ledger, congratulations, you have made money with cryptocurrency. You would call your cryptocurrency a “memecoin” if it’s branded a certain way, I guess? But that’s just the branding.
You can use a few different techniques to get someone to pay you that money. You can try to convince them that later on, someone else will pay them *even more* money to change the numbers. This was the dominant strategy for a while – just generate a ton of hype and hope someone will buy that hot potato from you in the hopes of passing the hot potato on to someone else.
You can tie an asset to the number, like NFTs, or those businesses that “sell stars” (i.e. charge you money in order to write your name down next to a star in a book they keep in their offices).
Or you can use your blockchain/memecoin as a ledger that tracks something real and important, like say, gym membership; then people would pay you real money for this real asset, only rather than record their membership in a tiny text file or database on your office computer, you store it as a giant computationally-intense blockchain spread out across several computers, because “it’s crypto” might generate interest on that merit alone.
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