Wednesday, August 16, 2017 12:27:33 PM
How Do Cryptocurrencies Become Valuable?
In part one of this series, I talked about how money derives its value as a medium of exchange, and how cryptocurrency could appreciate in value if adopted by a much broader user base. Currencies like Bitcoin are often used to escape local capital controls, process faster remittance payments, provide improved anonymity and security, and reduce transfer fees. However, Bitcoin—the largest cryptocurrency—remains a long way from mainstream adoption. A significant portion of any digital currency’s price value and demand is purely speculative and based on its potential future superiority over fiat money (government issued currency). Part two of this series will explore the main drivers of short-term digital money market volatility, and explore their emergent qualities in the more distant future.
Read the full story - https://dcebrief.com/op-ed-how-do-cryptocurrencies-become-valuable/
In part one of this series, I talked about how money derives its value as a medium of exchange, and how cryptocurrency could appreciate in value if adopted by a much broader user base. Currencies like Bitcoin are often used to escape local capital controls, process faster remittance payments, provide improved anonymity and security, and reduce transfer fees. However, Bitcoin—the largest cryptocurrency—remains a long way from mainstream adoption. A significant portion of any digital currency’s price value and demand is purely speculative and based on its potential future superiority over fiat money (government issued currency). Part two of this series will explore the main drivers of short-term digital money market volatility, and explore their emergent qualities in the more distant future.
Read the full story - https://dcebrief.com/op-ed-how-do-cryptocurrencies-become-valuable/
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