Despite the claim that crypto has only increased due to people seeing the increase in dollar amount, there are other reasons. Crypto is the answer to the supply and demand that exists. If these reasons behind the increase adoption are protected then the possible growth will continue to be protected from just being reliant to the public interest and the media’s attention span.
Real Value/Holding Value:
Inflationary practices and government action has started to be noticed by some in the general public. The fact that mass printing paired with a steady amount of lending now seem to be accepted parts of reality. What was once a dream of saving up money has not been rewarded by government policy for decades and there seems to be no sign that it will be rewarded in the future.
Bitcoin and other crypto currency’s appear to be rewarding those who save up and hold for the long term. Swing trading has made individuals a lot of money but there are also numerous stories of people buying and then just holding to what was unbelievable prices or forever. The culture of saving being rewarded perhaps not always but overall is a core part of the crypto environment.
Money in every developed country has become united under one currency that is not backed on anything else. America for a very long time manage to resist this trend. Bank notes where just that. They where issued by the numerous banks and could be exchanged for Gold or Silver that could then be taken elsewhere. There was certainly risks if people where lied to or invested their money into banks that could loose it. Before the time where all savings up to a certain amount where insured by governments people had to be careful with where they put their money.
Centrally planned systems often fail or have widespread issues. This appears to have become the case in the central US backed system. We moved away for raw resources determining the price of our currency and instead to a world where a central bank can change entire economic systems. Crypto even its whale problem is much less centralised bringing back the freedom of competition and removing the disadvantaged of planned economies.
Hope of future solutions:
Our economies and monetary elements of our society have also constantly changed. Those who think that this is not true do not need to look longer then the way that the world changed from the first world war to the end of the second world war. The British Pound that had been regarded as the worlds currency was replaced by the American dollar that was later reinforced with deals crafted with Middle Eastern States.
Crypto may be the step forward that can deal with many of the issues that the central bank systems have created. It may also be the solution to lots of the issues that are occurring in the investment world where fiat currency has inflated values of even sub par companies.
It offers a way to have real value in a different form to standard Gold and Silver. Changing your money from the currency of one nation to another is something that is done by many people but crypto moves it away from the control of a national bank or a nation state. It changes who is in control of it and also allows the holder to make a choice of which project that they trust to keep value.
Viewing crypto just as linked to the price going up is not the full story. There are numerous concerns that have been created by our economic systems that are being addressed by the crypto space. However, the players and investors in this space should remember these concerns. Betraying the other reasons people are joining crypto for the price is chasing one element at the cost of the foundation.