Bitcoin breaks one record after another. It is now one of the most lucrative investments, making it one of the most successful financial products. Many are wondering about the price frenzy and many others are wondering how far it will go. Cryptocurrency lovers consider it a very successful venture, although, in terms of financial contribution and value, the analysis contains great mysticism. Mysticism, however, is not necessarily a negative quality, as the new is often mystical.
The great success of cryptocurrency stems from the indisputable fact that it is used in commercial transactions. If this were not done, it would not be possible to use them in payment systems, nor could it acquire the role it acquired, as a safe haven. What makes cryptocurrencies successful is that they are used as a means of exchanging real goods. If this is the case and indeed cryptocurrencies are used to trade products, at some point in time, it is certain that in order to continue to exist and replace other currencies, they will have to look for a more fundamental economic value that, they do not have today. The lack of justified economic value along with the enormous energy consumption it requires seems to be the biggest weaknesses of cryptocurrencies. These weaknesses, although great, do not negate the positive properties of cryptocurrencies. But if cryptocurrencies are to become a widely accepted means of exchanging goods, they will inevitably have to redefine their value in fundamental economic terms.
In fact, any product trading means such as coins, when used represents the value of the products of the value of the currency. If this relationship between currency and the value of goods is disturbed because the currency does not represent real economic value, or because there is a sharp rise or fall in the price of the currency as is the case today with cryptocurrencies, then the currency will cease to be a medium of exchange.
Lately, cryptocurrency holders have become much richer because cryptocurrencies are becoming more and more accepted as currencies for buying and selling products. But this is only one of the properties of currencies, which, however, is not enough to be considered sufficient for the long-term existence of a widespread currency.
In addition, increasing wealth in a population such as investors who have invested in cryptocurrencies, when their fundamental economic background is based on innovation and expectations, as in cryptocurrencies, is acceptable and indeed exists and always happens in economic history. But when the increase or decrease of wealth will affect the majority of the population, the rules change.
As the wealth of cryptocurrencies grows, so does the need to redefine them and integrate them into fundamental economic rules and regulations. The philosophy, ideas, and perceptions of cryptocurrencies are valuable, but as cryptocurrencies expand, their coexistence in their current form with other currencies seems utopian.
However, this much is certain. The era: "either this or that", "we or you", it is outdated. We now live in the age: "this and that", "we and you".
In this respect, indeed, traditional currencies could adopt many of the principles of cryptocurrencies, but what is very important is that cryptocurrencies should be gradually integrated into the fundamental economic architecture of currencies. Otherwise, at some point in time, and this will happen when the cryptocurrencies will involve more and more people and economic activities, the critics who say "the king is naked" will be confirmed, and they will probably be right.
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