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Hello I am pretty new to the world of crypto and as far as I understand Tokens are basically ERC20 contracts written in the Solidity and deployed on the Ethereum blockchain.

I understand people buying and exchanging these tokens for speculation, but what goods or services can we buy with tokens? Are there any practical uses? Could you provide some real examples?

So far to me it all looks like collecting stamps.

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One of the biggest use cases so far has been to create stable coins. For example: USDC, USDT, BUSD, etc. which are all ERC20 tokens. And yes you can buy things with them, although options are pretty limited at the moment.

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  • Thanks for the answer. So would you also agree that most of these buys/sells are just for speculation? Aug 10 '21 at 18:44
  • Most? Probably. All? Definitely not. Many here, myself included, hold a basket of ERC20's as an investment (and farm with them). I believe in a lot of the tech, and the work that many of these DeFi protocols are doing is pretty amazing. For me it's no different than holding a stock long term. It's up to you if you consider that speculation.
    – MoonGusto
    Aug 10 '21 at 18:48
  • Could you make an example of token which has a project behind and that potentially can have a value associated to a good/service please? Aug 10 '21 at 18:52
  • Value is subjective, but major protocols would be Uniswap, Compound, Aave, SushiSwap, Chainlink, etc...
    – MoonGusto
    Aug 10 '21 at 18:54
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    Let's say I have 10 ETH and I want to convert it to USDC. My only option a few years ago was to use an exchange like binance. Now I can do everything from inside my own wallet.
    – MoonGusto
    Aug 10 '21 at 19:12

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