I'm reading about all this cryptocurrency for a little while now (hard not to its all over and everywhere) and I got some questions that I could not find a satisfying answer.
1. There is no question about Fiat money (whatever it is $, £ or euro.) thats its losing it's value, so the question is. If it got no value what value Bitcoin have then ? ( i will use bitcoin for must common crypto but thinking of any). Can't get my head over it.
2.If you imagine in let's say 20 years FIAT goes to CRYPTO all the way. You want to buy a car worth $5000 but paying in Crypto, how much would you pay ? if $ got no value.
Bitcoin will be worth as much as Bitcoin will be worth no matter how much fiat is worth now or then. To buy car you will pay as much Bitcoin as seller will want. You will agree with that or not and go buy car somewhere else. Loaf of bread will be worth as much as now 10 years from now. Ounce of gold also. Gold stores value well. 2000 years ago you were able to buy a armour with ounce of gold. 100 years ago you were able to buy a business suit with ounce of gold. Today you can buy a designer outfit with ounce of gold.
Bitcoin is very volatile and dont store value well and will be 10 years from now much more expensive or much cheaper. Maybe you will be able to afford a sport car with one Bitcoin or you will only be able to fix flat tire.
Bitcoin's volatility are the basic issues that you need to understand in holding and investing in bitcoin. Bitcoin is still better than fiat money although there's a lot of factor that affect bitcoin's price when there's some issues in our surroundings. The increase in bitcoin price is higher than you imagine if it moves in the market and also the drop in its price is also huge, so it is risky to use bitcoin but very effective as a store of value. Once you know the importance of bitcoin in the economy, you will learn how to manipulate it in the market properly. Gold and bitcoin have similarities but they are both a good store of value, the only difference is between the time where they are good to use. Bitcoin are for a short term profit and gold are for a long term store of value.