Quote:
Originally Posted by LightingGuy
Can you elaborate on that?
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Crypto currencies have no intrinsic value. This is also true of fiat currencies, but at least fiat currencies have states behind them to give some longer-term credibility (you can walk in to a bank with a $10 bill from 1935 and redeem it for face value, for example).
There are no barriers to entry to crypto. Anyone with some open source software can start their own, whatever crypto is trendy this year may not be trendy next year.
Crypto is far too volatile to be used as a unit of exchange for most purposes. How do you buy corn futures for September when you don't know if bitcoin will be worth 25k or 80k (its range over the last few months in CAD).
So what you are left with is a purely speculative product with no intrinsic value. Purely speculative products with no intrinsic value do not have a good track record.
https://en.wikipedia.org/wiki/Tulip_mania