[acdha]

Yes, cryptocurrency is the purest form of fiat currency, which is to say a very weak one. The difference is that almost all other fiat currencies are backed by an organization with real world power: for example, the US dollar is required to pay taxes in one of the largest world economies, which guarantees trillions of dollars in demand, and it’s what the US government uses to pay millions of people and buy all kinds of different things. Other countries currencies follow that pattern to varying degrees which is also why we’ve seen efforts like the Euro to, among other reasons, increase the overall volume.

Cryptocurrencies lack sovereignty and don’t have an alternative source of baseline demand, which is why they’re volatile on a level normally associated with collapsing states — especially if they’re like Bitcoin where the deflationary model encourages everyone not to spend. When anyone can easily set up a functional equivalent, there isn’t much to anchor the valuation. This is why people created things like NFTs to give others a reason to buy their tokens rather than someone else’s but that’s not especially stable until those NFTs are accompanied by legal contracts conveying tangible value.

[abaga129]

While I dont completely agree with you, you do make good points. I would argue that Cryptocurrencies lacking sovereignty is what makes it appealing and gives it value for most users. Bitcoin is seen as an inflation hedge for many investors when they see their own government printing money like its post WW1 Germany (Exaggeration). The volatility is definitely an issue for someone looking to invest a serious amount into.

I personally feel that we are still in the very early stages of this tech and I think it will continue to grow.