Cryptocurrency is unsupported: is it true or is it a myth?

[harastvo]

Perhaps, the most long-running discussion in the context of the crypto-currency market is a discussion about what the crypto-currencies are supported.

Like, traditional currencies are officially supported by whole states with different sectors of the economy, and the crypto-currencies are not backed up and therefore can not be seriously considered anything at least remotely comparable to traditional currencies.

In fact, the situation is somewhat different. First of all, the crypto-currencies are backed up by the US dollar, no matter how strange it may sound.

Let's figure it out. What gives a huge number of people the belief that it makes sense to hold the American dollar or, for example, the euro? Understanding that this currency is stable and for the preservation of its value is the responsibility of the state, interested through this currency to receive income in the form of taxes, etc.

On the crypto-currency market, the situation looks somewhat different.

Of course, there is no state here that is responsible for the preservation of value. But in traditional currencies, objectively speaking, no state guarantees that the national currency will be stable and will not fall in price. Moreover, we never talk about the fact that this currency will grow in value or in some other way develop and strengthen its positions.

The same in crypto-currencies. There are no guarantees and obligations from a certain central authority, but there is a collective interest and financial motivation regarding the viability of the currency. In the crypto-currency market, this financial motivation is present among those who invest in them, and those who are engaged in mining.

If the dollar is based on the interest of the US state to make money, bitcoin is based on the interest of investors and miners to make money.

the key difference in this case is only that the state has regulatory instruments that do not allow the market to spontaneously weaken the exchange rate of the national currency. And in the case of the crypto currency, there is no such regulation and, in this connection, supply and demand can grow very disproportionately, leading to significant fluctuations in the exchange rate.

Thus, crypto-currencies are supported by the desire of many invested in this market to earn people, and it is not just about private investors.

A huge number of companies have already invested tens of billions of dollars both directly in the crypto-currencies, and in the development of the accompanying market infrastructure.

And it is these investments, taking the form of huge mining farms, factories for the production of equipment, institutional investment funds, the largest exchanges and much more, generate interest in the development of the crypto-currency market comparable in strength to the interest of the state in obtaining income through national currencies.

And at this stage, it is this interest that is the main guarantee that tomorrow the crypto-currencies will not suddenly disappear, and the rapid growth of crypto-economy will not stop there.

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[Mahanton]

the key difference in this case is only that the state has regulatory instruments that do not allow the market to spontaneously weaken the exchange rate of the national currency. And in the case of the crypto currency, there is no such regulation and, in this connection, supply and demand can grow very disproportionately, leading to significant fluctuations in the exchange rate.

This would really be the hindrance and the fact thing why crpytocurrencies would really just still remain on field it specializes on.Government might be considering on some aspects but in general it would really have its own limitation when it comes to involvement.We do just accept the reality that it would really be hard to consider and would remain unsupported but i do agree on the thing been said that crypto would still live for more years since we do see its contribution when it comes to financial transfers and other benefits.

[the13thsymphony]

As of now the cryptocurrency is dependent in fiat currency as you have mentioned. Without it the value of many crypto is just but a null. There is also the volatility that is meet by the great supply and demand of investors, but it is this volatilty that made many people earn more than they previously have in their day jobs. The crypto industry in my opinion is still very young, yes their are many innovation that way made in the last few years however it is just less than a decade when we were introduced to cryptocurrency and its growth will just continue. As a member of this industry we just need to be diligent and keep learning how the market will grow because we will benefit in every innovation that will be made throughout the years to come.

[birzh0]

mb i will repeat somebodies words, but the most popular money in the world-USD-is supported by nothing. It is a bubble, several crisises showed it very well.

[Seundavid]

Legally most of the countries are not supporting cryptocurrency.

[Spaffin]

In all countries, the national currency is supported by the central bank. He follows his course and, if necessary, withdraws some of the national money from circulation or adds them to turnover, and also buys a foreign exchange currency or sells it. This is supported by a fixed rate of national money. The dollar in us is very special in the world and therefore here the example with the dollar is shown unsuccessfully.
Decentralized crypto currency is not supported by anyone in order to stabilize its exchange rate and therefore as extremely unstable by its nature can not be used as the main currency of a particular state or group of states.

[Hydrogen]

Cryptocurrency is unsupported: is it true or is it a myth?

I'll contend: it is both true and false.  

It is true in the sense that bitcoin is not backed by gold, resources or commodities.

It is false in the sense that there are no economies in the world today who are truly backed by gold or anything with intrinsic value.

The quantity of gold contained in fort knox or any gold repository in the world, is not sufficient to serve as legitimate insurance in case of economic catastrophe. Thus we cannot say that fiat currencies being "gold backed" functions in the way it was designed to when people think of a currency being gold backed serving as a form of reliable insurance.

The value of gold is at a low at the moment. A big part of its low value involves its lack of utility. There is no support or infrastructure for precious metals to carry utility as being a legitimate commodity of exchange in regard to buying or selling goods / services. I believe governments do not want fiat currencies to have competition in the form of gold and other commodities, states prefer centralized markets. And so gold's value will not be great enough for the term "gold backed" to serve as a reliable form of insurance anytime soon.

[Tenderino]

If bitcoin is unsupported, then I clearly prefer unsupported crypto currency because in this case unsupported means it has the highest value from all available currencies worldwide. The huge value difference between officially supported and unsupported coins also confirms that the official currencies are a value robbing system, otherwise its value would be not that low compared to unsupported coins like bitcoin.

[airdagon]

indeed some countries in all corners of the world do not support crypto, but we all also know that some support crypto. states that do not support just have not realized how the cryptocurrency works, but in my opinion, sooner or later a state that does not support or ban crypto will start to follow the times and begin to adopt cryptocurrency in its countries.

[Btc_1856]

Crypto currency is becoming supported one, because now we see bitcoin become one of the support coin from the some countries. Unsupported coins are other than bitcoin, but there values are kept increasing because based on the member increasing to support those but not the governments.

[pinkflower]

Newbie account, long post. That looks like he copy pasted it.

But to answer if "cryptocurrencies is unsupported", yes it was true in the beginning in the case of BTC. Some were correct to say that it was a ponzi scheme. But not anymore today because theres economic activity behind it now.

Most of the altcoins still are considered ponzi schemes.

[jvdp]

Crypto currency is becoming supported one, because now we see bitcoin become one of the support coin from the some countries. Unsupported coins are other than bitcoin, but there values are kept increasing because based on the member increasing to support those but not the governments.

After ethreum smart contract token creation has launched since that we see many people coming to invest on crypto currency. Then number ICO for everyday basis also getting increase day by day.
If you look at the coin supported by government side. You can see the ripple which has more support by banks and government but this is shitcoin we cannot surely say that this will give profit to us.

[Vektrum]

Crypto currency, after all, is not supported by anyone and its price depends entirely on demand and supply. This is the reason for its high volatility and is practically the source of all other problems for it. Decentralized crypto currency will, of course, exist and develop, however, it seems to me, along with it, centralized digital coins will also develop, as well as coins that will be digital substitutes for fiat, such as USDT.

[EdenHazard]

The case is like, the national currency governed by the government indirectly as the user community inevitably they must have it because it is considered as a legitimate means of exchange, there is an attitude of compulsion directed by the government against the use of national money.

Whilst cryptocurrency, anyone who is a person who dares to take an advantage in the form of risk that must be experienced by yourself. There is no element of necessity that cryptocurrency should have for everyone who uses it. Even the community/users who come alone. The above differences show that everyone prefers cryptocurrency compared to national money. This case reinforces no reason cryptocurrency will disappear and even have no value.

[Uno17]

Yes it is not supported yet, and hopefully one day it will be supported then. Its life depends on its stability and reputation in the market and everything relies on  the supporters and its users as well. For now people starting to adopt  cryptocurrency in in their lives but each government didn’t support it yet, therefore its own life (cryptocurrency) is also its own support system

[buwaytress]

It is both true and a myth, as your own commentary describes. Fiat has the exceptional advantage of being supported by the states sponsoring them, but then you can look to recent examples in Greece to see just how much a state's promise to honour its currency is worth. You can go farther back in time to also see how much a bank's guarantee of your savings is worth, like when Barings collapsed after a rogue trader used depositors' funds to gamble and lose on the stock market.

Put in that context, there is little that separates Bitcoin and fiat in what's supporting them.

What fiat doesn't have though, is the backing of users and their communities. It doesn't have the security of cryptography... Virtually impervious to hacking and getting stronger every moment. That is some serious support in my view.

[kryptqnick]

First of all, the crypto-currencies are backed up by the US dollar, no matter how strange it may sound.

In traditional currencies, objectively speaking, no state guarantees that the national currency will be stable and will not fall in price.

The same in crypto-currencies. There are no guarantees and obligations from a certain central authority, but there is a collective interest and financial motivation regarding the viability of the currency.

If the dollar is based on the interest of the US state to make money, bitcoin is based on the interest of investors and miners to make money.

I don't think it is correct to say cryptos are backed up by usd. Of course, many people eventually trade btc and other coins for fiat, but it is rather that they hope cryptos are backed up, not that they really are.  Dollar is also based not on the interest in making money, but on the interest of buying goods for that money eventually. The money itself is just useless numbers and papers. People care for what can be obtained by it. Bitcoin is also based on the interest of getting profits eventually.

[InvestICO2L]

As of now the cryptocurrency is dependent in fiat currency as you have mentioned. Without it the value of many crypto is just but a null. There is also the volatility that is meet by the great supply and demand of investors, but it is this volatilty that made many people earn more than they previously have in their day jobs. The crypto industry in my opinion is still very young, yes their are many innovation that way made in the last few years however it is just less than a decade when we were introduced to cryptocurrency and its growth will just continue. As a member of this industry we just need to be diligent and keep learning how the market will grow because we will benefit in every innovation that will be made throughout the years to come.

Personally, I think that traditional currency (fiat) is very long lasting in most parts of the world. It’s considerably essential to people, and also it’s a basic unit to take transaction or exchange in daily life. Therefore, almost people are familiar with using fiat, and so supporting to use fiat. With bitcoin, to compare with fiat, it’s just a form of currency which have been appearing around six years but it takes a big influence to global economy as well. Cryptocurrency, moreover, is really popular but the amount of people who don’t know this digital currency, is much crowded than the ones know it. Most importantly, almost governments ban people from using it. Thus, crypto currency is pretty unsupported like fiat.

[amih]

one thing that causes the crypto currency is not fully supported by some countries because until now the crypto currency can not be controlled by the government. and in addition the crypto currency does not necessarily require the Bank system as a financial center that can be taxed by the government. I think it is some of the things that cause the government to be less interested in the crypto currency system. it may be that the government will accept the existence of the crypto currency if they have created their own crypto currency which has the Bank as the center and of course all will be controlled by the government.

[kdrama]

Cryptocurrency is supported by all that's for sure even some people are not getting it. Some countries up to now are using cryptocurrencies as a alternative currency in their countries and some of them use cryptocurrencies as assets and there's nothing wrong in it. Cryptocurrency is unsupported is just a myth i guess.