that's how it was intended in a way, to be above govt regulation and as a way to combat inflation and exchange rates. the "problem" is until it stabilizes and finds it's equilibrium it can fluctuate as people buy and sell, BUT they all keep appreciating, so as a 5,10,20 year hold it could and will pay off huge unless the government does some radical legislation against it or tax it at 90%. that scenario is unlikely because it is so easy for the average joe to set up an account and buy, politicians are contending with millions of users, and not just a few fringe folks living on the dark web. Granted no one can predict the future, but history and trends show it's the wave of the future potentially. like anything don't bet more than you can afford to lose.
Not quite. Crypto has the same problem as gold. When currency was tied to gold, the amount of money was close to fixed. The only increase in the money supply was the increase in the gold supply. The economy coiuld not increase the amount of goods and services unless the price of goods decreased -- same money, more goods would equal inflation.
You can trace through history the economic impact of large gold finds resulting in increased circulation of money. When the Romans started mining the deposits in Spain, when Spain started bringing home gold from the New World, the '49 California gold rush. Each influx of gold resulted in an economic boom. There was more money to spend, so the economy responded by making more goods and services -- the economy grew due to the increase in money supply.
That should sound familiar. Historically, economists have taught that inflation occurs when the money supply increases and more money chases the same amount of goods and services. While that statement is correct, it hasn't held true over the last thirty years, not at a national level. Enter "new monetary theory". It essentially states that a nation can increase the money supply (print money) without creating inflation as long as the increase in money is smaller than the increase in the capacity to DELIVER goods and services. With globalization, a nation's capacity to produce goods and services is not limited to what it can produce domestically, it can import what it needs to soak up that money.
Just like when gold entered the economy and boosted buying, printing money, it turns out, can be done without the inflation penalty. Well, until you run into limits of importing through tartiffs or government regulations limiting shipping capacity.
Crypto has the same limit as gold: you can't make more to increase economic activity. In that respect, it's a huge step backwards.
