Brook Monroe
Aug 25, 2017 · 1 min read

Volatility is an issue, too. Although I wouldn’t be caught dead in a Starbucks (or, for that matter, drinking coffee), I might want to buy something else, only to find that overnight, the value of my “Bitcoin stash” has fallen so much it’s not worth expending. There are forces in the world economy that tend to stabilize dollars, euros, yen, yuan, and what-have-you, that don’t exist in the world of crypto-currencies, and there’s absolutely no pressure in the system to enforce stability. Coin miners don’t really care because after the initial investment, the upkeep is fairly minimal (you pay your electric utility bill) and it’s free “money” no matter how little it’s worth per unit. Those who merely hold BitCoin or Ethereum do so at their peril, and will in most cases have exchanged real goods or services to obtain them — but I suppose, along the vein of “never carry more cash than you can afford to lose,” they’re comfortable with the risk and don’t consider the potential loss as a deal-breaker.

Money derives its agreed-upon value based on physical commodities or perceived economic output and contribution; crypto-currency values still appear to be based on a combination of pixie dust, unicorn farts, and rainbow seeds. The fundamental problem with crypto-currency isn’t that the transactions are slow — it’s that no one will make the leap until it’s more than a “good for what ails ya” patent nostrum sold at a medicine show. Making it available via a plastic transfer instrument isn’t going to change that.

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    Brook Monroe

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