The Ongoing Legitimisation of Cryptocurrencies

DATE: Oct, 10   COMMENTS: 0   AUTHOR: Allan Azarola

There’s no doubt about the fact that many people regret not having “gotten into” cryptocurrencies like Bitcoin back when they appeared to be nothing more than a radical economic transformation idea. Sure, had you made the means to acquire just one mere Bitcoin back when it cost less than pack of crisps, you would have been sitting on insane gains right about now.

However, you should not feel at all bad about “missing out,” because you haven’t really missed out when taking into account the general direction cryptocurrencies are taking. Those who have sought to profit from the emergence of new mediums of exchange in cryptocurrencies are merely part of the legitimisation process of these cryptocurrencies… A much-needed process of legitimisation.

They are traders or they can perhaps also be referred to as speculators, but their speculation on the fluctuation of cryptocurrency exchange rates is merely part of what it requires to solidify a new medium of exchange to the point that it will inevitably become universal.

Official exchanges give crypto tangible value

Why do the wealthiest of stock millionaires and billionaires generally appear to have something against cryptocurrencies like Bitcoin? It’s mostly likely because de-centralised stores of value such as Bitcoin are a threat to the institutionalised channels through which they create and maintain their wealth.

That said though, the most ardent of crypto antagonists are at worst secretly acknowledging the inevitable legitimisation of cryptocurrencies, despite their threat to their monopolised wealth controlling mechanisms. They do this by storing some of their own money in the likes of Bitcoin. It is when these transactions are taking place that cryptocurrencies partially gain and retain their value, i.e. if you can convert your Bitcoin to Paypal via more than just a couple of exchanges, and actually spend that money, what more do you need in order to solidify your acknowledgement of the value contained in Bitcoin?

The exchanges which facilitate this may not all be officially recognised and endorsed by the gatekeepers of the old financial industry, but the fact that they work is all which is required for them to validate the value contained in cryptocurrencies.

Other cryptocurrency value-creation elements

There are plenty of other elements which serve to ratify the legitimacy of cryptos, quite a few of which are comparable to regular currencies and financial instruments that are associated with exchangeable value. To name just a few very important and perhaps obvious ones, these would include:

-The exchange-value of Bitcoin against major currencies like the USD

-The fact that Bitcoin and to a lesser extent other cryptocurrencies are increasingly widely accepted as a form of tender, legal or otherwise

– Bitcoin’s consideration in the monetary, political and legal policies of major governments and financial institutions

Where are we right now?

Basically as of right now we’re at a point where we cannot deny the legitimacy of cryptocurrencies such as Bitcoin, testimony to which is the emergent security risk factor associated with its exchange, storage and transfer. Bitcoin is here to stay, whether as the leading cryptocurrency the world eventually universally adopts, or as the template for cryptocurrencies in general. If somebody gives you a Bitcoin and someone else manages to steal it, you’ve definitely lost value, haven’t you?

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