The true and long-term value of an asset does not depend on its current price. Prices fluctuate depending on the instantaneous supply and demand. But it is not a real demand. Demand is created artificially and speculatively by bots. Nowhere is this more the case than with cryptocurrencies.
The price of an asset is determined by bots on the exchanges and is very arbitrary. It can rise very sharply and fall very sharply. Bots do not need the assets. They only speculate and influence prices. Especially with cryptos, it is very heavily manipulated. Billions of USDT are minted to artificially pump up the price of cryptos. USDT is in principle a type of crypto fiat, it can be minted infinitely.
The true value of a crypto is not its instantaneous price, but its usefulness and network effect. The more people use a crypto, the more applications there are where you can use it, the more merchants accept it and it is used by merchants, the more valuable a coin is.
The cryptomarkets today are pure speculation. The current prices in no way reflect the long-term value of a coin. The most obvious example is Cardano. Nobody can use it and nobody needs it. The price is only pumped up by a hope that at some point it will be more expensive and you can sell it more expensively. It doesn't even work yet, but it is on the 3rd place in the CMC. Three years ago there was already something similar with EOS. The price was heavily pumped even before the launch. It was even very heavily used at the start, then the transactions fell in the long term.
The trend is clear. 2017 and 2018 EOS was high in the top 10 in CMC. You can check where it is now. This is just one example of many.
What gives the USD its value? Do you think that there are goods behind the USD? No, it is not the case. There are far fewer goods and services than there are USD in circulation. Why does the USD retain its value? Why can you get anything at all for the USD? It is because the USD is accepted as a means of payment everywhere in the US. It is also accepted in many other countries and many international contracts between companies are made in USD. Acceptance gives the USD its value. You know that if you have USD in your pocket, you can pay with it basically anywhere in the world or at least exchange it very easily into the local currency.
Therefore, think long-term and see how many new developments and projects are based on Bitcoin Cash. Help Bitcoin Cash become more popular and more merchants adopt it. This is the key to success, not a short-term pumped up price. There is still a very long way to go. But it is the only way. An artificially inflated price that will burst at some point is an aberration that leads nowhere. The coins that go this way are doomed to fail.
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It's so interesting to see how the economic world is advancing from one stage to another. It seems to me that crypto is the way to go and awareness has to be created down to the common man level. Lots of insight gain from your article about the true value of currencies that crypto is key, .... Thank you for sharing