Quote:
Originally Posted by carlsonjok
The major downfall I see of cryptocurrencies is that they present themselves as a modern alternative to national fiat currencies without solving the presumed problems of such currencies. The US dollar is a fiat currency so, to a certain extent, its value as a medium of exchange is derived from the fact that it is backed by the full faith and credit of the US government *and* the markets opinion of same. Cryptos are fiat currencies backed by the nothing other than the hopes and prayers of it's holders.
Here is the one year chart of Bitcoin:
Attachment 495497
Maybe my view is colored by the fact that I intend to retire in the next 10 years, but that isn't anything I would consider as a store of value. A speculative investment? Absolutely, but there are plenty of speculative investments that are backed by tangible assets and cash flows like REITs and any number of publicly traded company stocks. |
Jeff,
I think you beat me to it. Didn't see your last post before putting up mine. I'm of a similar position that crypto-currencies may be undermining regular, national currencies in countries around the world. And that actions towards them, as already put in place by China, may become the norm for the rest of the world at some point. We shall see.