Breaking Down Why VTHO Is Important For (VET)
The one common denominator is all of my investments outside of Hive is they are all service related having an every day use case. This has not happened by accident as I do think the future relies in tokens that offer services to multiple projects.
VET or VEChain is one of my investments that I am continuously researching as I do think it will jump out the pack shocking many what they have to offer. The price will only start to climb in value once the VTHO (gas fees) are in short supply. This is the reason behind investing in VET as each token generates a percentage of VTHO which is used to pay for the transactions on the VEChain.
VTHO is generated by holding the VET token. There is a fixed number of 87 billion VET tokens which generate VTHO daily at a rate of 0.000432 per VET token. This results in a fixed number of 37,584,000 VTHO tokens generated daily.”
37 million 500 thousand is the key number to pay attention to as once that number is being used and more is required the VET price is going to sky rocket. Companies are going to have to hold VET to create VTHO in order to pay for transactions on the blockchain. Things are easy now as the prices are cheap but they will not be so fortunate in the future unless they have massive stake.
This graph depicts only one account that being of Walmart China burning the VTHO in order to process their orders. The growth is fairly obvious which should be expected as this is the busy time of the year for retailers. I don't have the figures as a percentage to the growth compared against last year, but it looks more than 20% just for October, November and December thus far with 3 weeks of the month remaining.
One gets a good idea of how much more adoption is required as looking by these figures VET would need 150 more companies the size of Walamrt in order to burn the daily VTHO being generated.
If we take the current price of VTHO and multiply by the daily VTHO supply we end up with a figure of $39 500 which is still a long way off from what is currently being burned.
$75 dollars worth of VTHO burned so far today is kind of depressing and at the same time is pretty cool as this is the real case of every day use being shown. We are still so early being in Crypto and this highlights how early as adoption has to still take place.
This for myself is another 5 years of building and growing stake waiting for the companies to get involved. We know AWS is using VEChain for the carbon emission services they have started so this may not need 5 years and could be way less. This is still investing in a project whilst it is still on the ground floor and I do think it will be a crypto project that not only succeeds, but does extremely well.
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