Cryptocurrencies Aren’t Real Money: Sorry to Bitcoin Fans
This is a Fact
The fascinating fact in regard to the cryptocurrency explosion is due to the fact that their creators do not understand just one fact: Money is not considered viable if it keeps fluctuating in value. This is especially with this sectors time to time wild swings. Additionally, most of the buyers are interested in buying the cryptocurrencies to make quick money and this treats Bitcoin just like the yore penny stocks. Therefore, the only point they forget is that cryptocurrencies were created on the basis of the government made money which is stable in nature. This is why they can reap profits through buying and selling. For instance, if you would take a mortgage in a bank in 2013 for $250,000, you would owe the bank a total of $18 million by now.
Therefore, it is until that time when the digital currencies link themselves to gold, the commodities basket or a currencies bundle, no one will ever be a replacement of the traditional, flawed central bank money we have always used every time. However, there is no artificial restriction which can be done to the supply. Additionally, the counterfeit scarcity s not the one which creates the value; the trustworthiness and utility do that. For instance, Swiss’s supply is very high and this is due to the fact that the long-term stability has been very efficient than all the other currencies in the entire world for more than 100 years. Therefore people find it desirable.
Just like the experts in the monetary sector, for instance, John Tammy and Nathan Lewis have discussed, Bitcoins nature of the wild swings from time to time have made an underscore of why unreliability of money is destructive. Therefore, the instability of the dollar from the time gold was abandoned in the 1970s is just an example of what has been happening with the cryptocurrencies lately.