Fools and their money
Since when did “cryptocurrencies” officially become currencies rather than assets (subject to capital gains tax) ?
Conventional currencies can easily be used for online purchases, they can be just as virtual as cryptos.
What “clear advantages” do cryptos have?
“financial inclusion and access” - conventional currencies can be used with ease both online and offline. There is no artificial scarcity to skew value in favour of early adopters. = Win for conventional currencies
“efficiency” - electronic conventional currency uses minimal energy to create or trade. Many crypto’s waste energy on expensive calculations whose results have no obvious utility = Win for conventional currencies
“speed” - updating a centralised bank account is faster than updating a distributed ledger = Win for Conventional currencies.
“resilience” - judge for yourself how resilient banking IT systems are compared to crypto exchanges. How often have people lost their money / investment in each system? How many crypto wallets are now irrecoverable?
Most cryptos have 0 intrinsic value, most conventional currencies were originally backed by precious metals, then later by the assets they are loaned against.
One reason cryptos are unstable is because if there is a big sell-off, there aren’t enough buyers willing to part with large amounts of conventional currency for them. Most holders of large amounts of cryptos are long standing investors who bought them when they were cheaper. Hence the true “dollar value” is never really tested.