According to the brief, the expense of creating a digital currency is notable, and an issuing company must also ensure its system is secure from cyberattacks. There are also risks for users, such as bankruptcy of the issuer.
On the other hand, “when inflation is high enough that consumers prefer to minimize cash holdings, the cost of establishing and securing a new digital currency system is low, and the platform’s market share is sufficiently large, then it is optimal for the platform to issue its own currency,” the brief states.
The whole jest is cryptocurrency can exist and be a form of asset in the real world. It is best in existence when the global economy is in a deflation state. Now imagine whether the real economy is in inflation or deflation the existence of crypto has become the norm and it can not be speculative investors only since it has appreciated since the beginning of cryptocurrency in 2009.
If investors were investing crypto for fight against inflation it is a benefit for them to continue buying. Then now with the FED coming out and expressing the possible benefits of crypto in a deflation economy one needs to ponder, what if, just what if the crypto as a whole can exist no matter how the economy is performing. Sometimes it is down and sometimes it is up. Just like any other asset that has value in this world it has highs and it has its lows.
Crypto is here to stay folks. It is slowly but surely being expressed as such even by the central banks who first stated cryptocurrency is not an asset but a scam. Now out saying it has potential to exist and grow under certain economic circumstances.
Thanks for reading.
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