“Cryptocurrency is absolutely here to stay. If you can’t see that at this point, it’s time to learn more about it.” -Joel McLeod
In years past, in any effort to go against the draining economic power of inflation, your normal investor would have probably put their dollars into a number of other assets; the most popular being precious metals- Gold in particular. Now, in the days of the rise of digital economics, it seems that investors have found another place to put their money: Cryptocurrency.
As these tokens and networks gain mass amounts of attention, it’s important to know that the rise in value is not only attributed to the hype, or the real value that is seen in their systems, but it’s also attributed to the loss of value from an inflated world of fiat currency. As the buying power for these currencies with no backing and unlimited supply decreases, it’s only natural that the buying power of valuable assets with limited supply such as BTC or Gold will go up against those inflated values. The immutable blockchain programs behind these coins are seen as a safeguard against manipulation and gives the users of the networks trust in the assets, bringing them even more value.
We like things like cash and these precious metals because they’re tangible: we can hold them in our hands. However, with DeFi popping up in the market space, it seems that as each day passes, BTC, ETH, DOGE and many other cryptos are becoming more and more tangible, meaning: more and more usable and tradeable. Folks are switching to crypto as a safeguard to inflation, as an alternative to gold or other precious metals, because it offers what gold does: real value. It’s value is found in the transaction process behind the coins and in the users of the blockchain networks. However, not only do these assets hold more value than fiat currency, they’re becoming as easily transferable as these government issued papers and coins, making the one who put their money into not-as-easily-traded gold think twice about their decision.
As the dollar or any other fiat currency loses buying power, the investor will always seek to put their money into what will grow against such losses of value. Although hype is what keeps some coins alive, like DOGE, it also seems to be what keeps many fiat currencies alive, aside from their tangible value. It won’t be long before the value is more fully appreciated in these blockchain applications. They’re gaining traction fast and soon these government money systems will have nowhere to turn as they are slowly but surely replaced by fully digital assets. Most of our money is made up and on the internet anyways, so why not have money that resides fully on the internet, where it finds true value in the programs which they fuel?
