The decentralized nature of cryptocurrencies has convinced people of ultimate success. Fiat currencies don’t always have large daily fluctuations. On the other hand, cryptocurrencies peak and fall overnight. This is not necessarily a sign of weakness.
The history of currency and its power over the public
Let us dig a little into the history of money. Gold has been considered as a valuable asset for a long time, but when it was first introduced as a form of currency around 700 B.C., it was not generally accepted. The general public took a while to appreciate and accept gold as currency.
Paper money is just a refined, centralized form of bartering. In the barter system, the value of objects being traded should match. The same applies to the value of money. In early civilizations that began to use money, this value solely depended on the rulers. How much money does the ruling party keep to itself and how much does it distribute? Wouldn’t they always be richer than the public owing to this? Being decentralized, cryptocurrencies already have an advantage over fiat currencies. The users of the distributed network hold all the power.
How and when will cryptocurrencies stabilize?
In the case of any currency, mass acceptance is the key to stability. When vendors from diverse markets accept digital money, crypto currencies are validated further. For example, some incredible Russian taxi drivers proudly display an ‘acceptance of cryptocurrency’ sticker. Way to spread the word!
While its regulation is still being pondered over in Russia, there are crypto-ATMs already popping up in supermarkets for public use. Digital money is moving at a faster pace than it’s given credit for.
When the simplicity and ease of crypto-currencies become obvious to a wider pool of vendors, public and service providers, they will be ultimately stabilise. Until then, keep an open mind.