The Digital Age, Cryptocurrencies
Submitted by nineofnine
The question to ask, does it meet the criteria for currency value and worth? As it stands, the pillars of currency must have as principles, three intrinsic values
1. Function ….as a medium of exchange throughout the economic landscape.
2. Carries value and vault potential or Store of Value.
3. Possesses units of value.
The intrinsic value and medium of exchange must have the potential and attributes to endure time and space and must stand strong throughout economic activity. Its value and vault potential lies in the ability to facilitate quantifiable amounts in safe, accessible storage over extended periods of time and ability to trade and invest. As far as unit of value/account is concerned, it must carry transactional ability to be applied to all areas of financial and economic sectors.
Where FIAT CURRENCIES capabilities carry the medium of exchange and units of value (1 & 3), it is devoid of STORE OF VALUE (SoV) (2), … because of its LOW stock to flow ratio. That is, the amount of money that is in circulation (stock) and (Flow) which eludes to the production of NEW or the future printing of its currency units. What this all means is, that fiat money can be easily printed at whims fancy and with that, comes a LOW stock of flow and LOW value or the creation of “easy money”.
On the other hand, CRYPTOCURRENCIES, having all characteristics and value attributes of “HARD MONEY” carries a HIGH VALUE.
1. It is a medium of exchange. It has the ability to be exchanged in secured peer to peer encrypted channels devoid of Governmental/Institutional regulation which might change to satisfy consumer trust. Monitored and transactionally balanced and recorded by Blockchains, a public validating ledger of records undertaken by those referred to as MINERS.
- CRYPTOCURRENCIES carries a high STOCK TO FLOW ratio as it cannot produce units as easily as Fiat currencies.. Its storage is facilitated outside normal channels in encrypted form. Access is through fortified gateways as some would determine “uncompromisable VAULTS”
Built on the premise of building units-blocks to garner ONE unit of currency making it harder to produce, hence creating its HIGH VALUE and WORTH.
The RARER the asset, the more “high-value” it carries.
MASS PRODUCTION of any currency ultimately devalues its worth. History showed that the ancient system that used seashells was replaced because of demands of the industrial age by MINTED METALS, then came GOLD to to back FIAT cash, now to CRYPTOCURRENCIES that is revolutionizing the financial and economic space. Large Corporate entities are now investing in Crypto and in their portfolios, even Governments are moving in similar direction incorporating “the new digital age”.
Gold has a high store of value but it flow side cannot exceed 2.6% of store, creating a “hardness” or supply, which really is due to hoarding supply and maintaining value.
“cash for gold exercise stores up the supply of gold”.
ENTER THE BITCON (leader in cryptocurrencies).
Bitcoin the “hardest” asset to secure to date presents real value per coin. As at August 2018 its worth stands $9000+ falling from a previous high of $16000.+ late 2017. Will it rebound?
Gold per standard unit (oz), $1200+. Cryptos’ inability to be mass produced creates a fixed supply, halving its ratio ever four years unlike Gold.
As more and more “Stakeholders” of economies garner momentum on investments and startup enterprises, mutual funds, pension funds, 401ks, IRA markets and other large financial markets etc. becomes target sectors for advancement of Crupyo.
Crypto is set to take strong root and presence in economic affairs and its landscape. Of note: ICE (Intercontinental Exchange), which owns The NEW YORK STOCK EXCHANGE (NYSE) announced a planned launch of an open and regulated Global ecosystem platform for digital assets. Likewise Germany is on a similar note to establish a multilateral trading platform for cryptocurrencies.
WooCommerce, facilitators of one third of all e-Commerce stores has integrated an e-Payments plugin by Coinbase for an digital epayments cart/checkout.
IS THIS THE TIME TO SERIOUSLY CONSIDER CRYPTO?
Indices/indicators are looking positive for growth. Note that any investment carries risks of lost or gain. http://newdigitaleconomies.com