I am new to criptos, and while I honestly dont know how they will do in the future, I do have several perplexities regarding them.
I understand the decentralizing part as well as the technology, but those two aspects still dont explain (in my eyes) what their intrinsic value is.
The comparisons with the very much hated fiats are striking in my opinion:
- both dont representing any physical & tangible store of wealth
- both depend on faith to give it value
- both exist mainly in the digital realm (and so only exist as long as the grid stays alive)
- both can be created out of nothing. Yes, I have heard that every cripto has a limited amount that can be mined, but is there a limit to the amount of criptos that can be created?
- both require a fee from the system it circulates in to be paid with every transaction.
To keep in consideration also that it was ment to replace currency (which differs from money) while now it is largely used as a speculative item, no different than any stock.
And what will happen to these criptos when a new/better/faster/cheaper technology will make the blockchain obsolete? I think it will prove another comparison with fiats, meaning that they all will come back one day to their starting value of zero.
The only real reason I can see why criptos might be interesting right now is that they offer an interesting possibility on big gains (in fiat currencies!!)as the overloaded debt systems which rule our countries collapse, but to fulfill its stated goal at birth there still is a very long road to go.