Markets have sort of destroyed cryptos as a currency.
Currency had a few purposes. It's a medium of exchange, a store of value, and a method of account. Right now cryptos fail on all counts. As a medium of exchange every crypto is garbage. It takes forever to transact and it costs a lot of money. This is made worse by the load of people not using but just buying and selling into the Ponzi scheme. As a store of value, each crypto is incredibly volatile due to the market. One month a Bitcoin might be $60,000 the next it might be $3,000. It's great if you bought low and sold high, but if you buy high and need to use your money when it's low it's terrible. Finally, as a method of account the same problem applies. I know how much a house costs this year more or less in dollars. How many bitcoins is a house? You can't say from day to day or from hour to hour. Look at Tesla selling their cars in Bitcoin: your quote is only valid for like 20 minutes because the value is in dollars and the price you pay is in Bitcoin and if they wait too long the price will deviate up or down.
So it's useless as a currency on all fronts, thus the only reason to invest is because others will invest and the price will go up, making it a classic Ponzi scheme. You don't buy it for any purpose other than to make money, nobody else buys it for any purpose but to make money, eventually it will collapse.
Currency had a few purposes. It's a medium of exchange, a store of value, and a method of account. Right now cryptos fail on all counts. As a medium of exchange every crypto is garbage. It takes forever to transact and it costs a lot of money. This is made worse by the load of people not using but just buying and selling into the Ponzi scheme. As a store of value, each crypto is incredibly volatile due to the market. One month a Bitcoin might be $60,000 the next it might be $3,000. It's great if you bought low and sold high, but if you buy high and need to use your money when it's low it's terrible. Finally, as a method of account the same problem applies. I know how much a house costs this year more or less in dollars. How many bitcoins is a house? You can't say from day to day or from hour to hour. Look at Tesla selling their cars in Bitcoin: your quote is only valid for like 20 minutes because the value is in dollars and the price you pay is in Bitcoin and if they wait too long the price will deviate up or down.
So it's useless as a currency on all fronts, thus the only reason to invest is because others will invest and the price will go up, making it a classic Ponzi scheme. You don't buy it for any purpose other than to make money, nobody else buys it for any purpose but to make money, eventually it will collapse.
@sj_zero I would love to see crypto become usable as a currency, but I have seen the same problems you note above.
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