Cryptocurrencies Neither Rare Nor Limited

Cryptocurrencies Neither Rare Nor Limited

We found these interesting thoughts from the Wall Street Journal on cryptocurrencies that we want to share with you.

ā€œCrypĀ­tocurĀ­renĀ­cies are supĀ­posed to be a hedge against inĀ­flaĀ­tion beĀ­cause isĀ­suance is usuĀ­ally reĀ­stricted. But thatā€™s only true of an inĀ­diĀ­vidĀ­ual curĀ­rency. As an asĀ­set class, crypĀ­tocurĀ­rency inĀ­flaĀ­tion is ramĀ­pant: There are now more than 5,000 coins.

Gold never faced comĀ­peĀ­tiĀ­tion from dozens of new preĀ­cious metĀ­als hitĀ­ting the marĀ­ket each month.

Gold beĀ­came a store of value beĀ­cause through most of hisĀ­tory it was also a medium of exĀ­change: Coins were once minted from it, and paĀ­per money was long backed by it. If crypto never finds acĀ­cepĀ­tance as a medium of exĀ­change, its useĀ­fulĀ­ness as a store of value is also in doubt.ā€ Ā  Ā WSJ 5-21-21