Regardless, bitcoin and other crytos are not sound money because it isn't back by anything. When people invest in it it just makes things worse as more and more accept it as real.
All currency is really backed by nothing. People like to pretend gold is different but it really has limited intrinsic value. It can be used as a conductor or for jewelry but how many people are electricians or jewelry crafters that would actually use it that way? It has a limited supply but so does Bitcoin. All currency is really just whatever value people decide it’s worth.
Regardless, bitcoin and other crytos are not sound money because it isn't back by anything. When people invest in it it just makes things worse as more and more accept it as real.
All currency is really backed by nothing. People like to pretend gold is different but it really has limited intrinsic value. It can be used as a conductor or for jewelry but how many people are electricians or jewelry crafters that would actually use it that way? It has a limited supply but so does Bitcoin. All currency is really just whatever value people decide it’s worth.
Study more on metal backed money. It's the only bona-fide money in existence.
So what’s the reason?