Post
Topic
Board Trading Discussion
Re: The reason people do not want to invest in crypto
by
johncarter123
on 20/05/2019, 07:36:04 UTC
Firstly, there is no backing to them. While other fiat currencies moved away from gold standards and the like some time ago, they do have backing - the labour of the citizens of the country. That has a definite value. I don’t see that with cryptocurrencies - like diamonds, they only have value because people think they do.

Secondly, you can’t spend them. A handful of places accept bitcoin, but very, very few. Even less accept other types. So if I want to buy bread, pay rent or pay for a taxi, I have to convert it to local currency. This entails extra costs, and extra risk as the conversion rates are volatile.

As a tertiary one, bitcoin especially causes problems at a time we are trying to reduce wasted energy. Massive server farms are using astonishing amounts of power to create these coins. That’s not sustainable, in both meanings of the word.