You don't think the relative value of foreign exchange rates is based on speculation? If so then why is 90% of FX volume speculation related?
Global fiat currencies and the international banking system are backed by nothing except money printing and perceived value, most financial institutions are technically bankrupt since 2008 and the whole system is very vulnerable to intermediary insolvency. The only reason banks remained as the international value ledger system after the GFC is because everyone is running on their closed source cartel API and they will destroy the ledger if they go bankrupt. Central banks have printed (electronically) in excess of US$15 Trillion in the last 7 years just to keep the current system running. Their own trust in fiat currencies is actually so low that they also hold 10,000s of tonnes of a relatively useless yellow metal to barter with. This is very heavy and hard to move around.
In contrast, cryptocurrency is an open source public value ledger, trustless and almost instant in comparison. Bitcoin has it's own technical problems, yes, so it won't go on to replace the global financial system, but crypto is, in my opinion, very likely to, so this is the start of a very positive move by the global economy.
Global fiat currencies and the international banking system are backed by nothing except money printing and perceived value, most financial institutions are technically bankrupt since 2008 and the whole system is very vulnerable to intermediary insolvency. The only reason banks remained as the international value ledger system after the GFC is because everyone is running on their closed source cartel API and they will destroy the ledger if they go bankrupt. Central banks have printed (electronically) in excess of US$15 Trillion in the last 7 years just to keep the current system running. Their own trust in fiat currencies is actually so low that they also hold 10,000s of tonnes of a relatively useless yellow metal to barter with. This is very heavy and hard to move around.
In contrast, cryptocurrency is an open source public value ledger, trustless and almost instant in comparison. Bitcoin has it's own technical problems, yes, so it won't go on to replace the global financial system, but crypto is, in my opinion, very likely to, so this is the start of a very positive move by the global economy.
I was just having a little debate with my husband about this last night. He thinks people are losing interest. I think that we have just plateaued a bit but there are so many uses in the development stage right now that we cannot see the outcome of that from this side yet. It will take a little time. The "need" might be caused by more situations like what is happening in Greece, more people being informed about how much they can save with international transfers, ease of use, etc. . . The next time we bubble and more people are interested in this "niche market" we will be in a much better position to keep the ball rolling than we were in 2013.
