Conversation

Nomi
@Nomaken1
Replying to
@Aella_Girl
Neither. I think cryptocurrencies will remain unstable non-mainstream currencies but stay with us for the foreseeable future.
1
Jimmy
@jimmy68camaro
Replying to
@Aella_Girl
It could become more legit due to how they're going to trade its futures. However, all currencies are based on some sort of central reserve. Such as the federal reserve. All currencies also have value based on the belief they have value. In other words, if you believe that a
Jimmy
@jimmy68camaro
Replying to
@Aella_Girl
That a dollar is a piece of paper then all value of that dollar is lost. If u believe it represents something you trust then it holds value. Same goes for government and faith (which is funny but true) bitcoin would need both backing of a reserve. (Such as more banks backing it)
Jimmy
@jimmy68camaro
Replying to
@Aella_Girl
And the belief it will hold value. This is why people turn to things like gold when the dollar faulters because gold tends to hold value regardless what the dollar does. Crypto currency would also need to be used more widely for it to be trusted more
Jimmy
@jimmy68camaro
Replying to
@Aella_Girl
If it becomes more trusted, more places will accept it as payment and it will expand. But a key thing is for banks to trust it. And unlike the stock market where money is based on value of companies, companies with real assets, money and things to be sold if it went belly-up
Jimmy
@jimmy68camaro
Replying to
@Aella_Girl
And the dollar (or another countries currency) with the value being based on the country itself and the value of what its able to produce, the land, resources, GDP it can produce, etc, etc. Cryptocurrency does not have these solid things of value behind it