The Problem With Exchanges
Virtual Currency Reality Manipulation
How Cryptocurrency Exchanges Operate
Within the digital currency universe there exists two forms of medium of exchange: cryptocurrencies, which are either derived from (in the case of tokens) or a part of themselves (in the case of coins), a technological protocol called a Blockchain, and virtual currencies, which are visually represented on a piece of software and derived from the imagination of the issuer. In the case of cryptocurrencies, the medium of exchange is decentralised. This means that the way in which the medium of exchange is configured is done in such a way that no one person or entity can manipulate the source of value ascription that is the core utility of the medium of exchange — that being its supply.
In the case of virtual currencies, the opposite is the case: virtual currencies are highly-centralised. In fact, virtual currencies depend upon a centralised form of governance in order to operate. Today a paradox exists which may be serving to undermine the nature of evolution of the digital currency market.
