You are viewing a single comment's thread from:
RE: My problems with cryptocurrency
First of all, where is the value coming from? Well that's simple, that's the value that you're talking about. The value that is in the normal currencies like in the USD, Euro, Yen.. And people are changing those currencies for the online ones. Which leads to a lower demand for the normal ones and a higher demand for cryptos. This change in demand will drop the value of the physical currencies and raise the one of crypto currencies. So basically, if you're not investing in crypto's you're not only missing out on some great gains, you're also losing purchasing power.
As for the problem of the small amounts, there are crytocurrencies that have a 0,0000% fee like IOTA for example.
I hope this ansers atleast some of your questions.
interesting. I notice when I apply the same questions to normal currencies like the dollars, the answers are even less satisfying than the cryptocurrency. The fact is we have been taught not to question the value of the US dollar or Euro when in fact we should be doing just that.
That is totally true, because if the central banks decide to start printing massive amounts of bills, we will lose purchasing power (because of the inflation that is caused by printing extra cash). So the value that we give to these established currencies is derived from the trust we put in central banks.
And exactly that is the reason that people are moving to crypto's, because for example for bitcoin, there is a specific amount of bitcoin that will ever be created through mining (21million). No one can change that not even satoshi (the developer of bitcoin). So here instead of just having to trust the central banks, we have a guarantee that there won't be created extra bitcoins after the 21million.
Thank you for the tip about IOTA. I am going to check it out.
I also never thought about the relationship between fiats and crypto in that way before. When my wife complains about me spending to much time on the computer tonight it will because I am not researching this idea.
I have to warn you that IOTA is still a very new coin, so it can be very volatile!