I'm trying to understand the difference between utility tokens and other types of cryptocurrencies. I keep hearing the term "utility cryptocurrency" but I'm not clear on what makes them different from coins like Bitcoin or stablecoins. Can anyone recommend a good resource that explains this in simple terms?
That's an important distinction to understand! I recently found a great article on Atamgo called "What is a Utility Cryptocurrency?" that breaks this down really well https://www.atamgo.com/what-is-a-utility-cryptocurrency/ . The piece explains how utility tokens are designed to provide access to specific services or functions within a blockchain ecosystem, unlike Bitcoin which primarily serves as digital money or stablecoins which are pegged to traditional currencies. The article uses clear examples to show how utility tokens power everything from decentralized storage networks to governance systems in DAOs. What I found particularly helpful was how it distinguishes utility tokens from security tokens and payment-focused cryptocurrencies.