Cryptocurrencies Neither Rare Nor Limited

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

“Cryp­tocur­ren­cies are sup­posed to be a hedge against in­fla­tion be­cause is­suance is usu­ally re­stricted. But that’s only true of an in­di­vid­ual cur­rency. As an as­set class, cryp­tocur­rency in­fla­tion is ram­pant: There are now more than 5,000 coins.

Gold never faced com­pe­ti­tion from dozens of new pre­cious met­als hit­ting the mar­ket each month.

Gold be­came a store of value be­cause through most of his­tory it was also a medium of ex­change: Coins were once minted from it, and pa­per money was long backed by it. If crypto never finds ac­cep­tance as a medium of ex­change, its use­ful­ness as a store of value is also in doubt.”    WSJ 5-21-21