Crypto-Fiat Affair is Fragile

Cryptocurrencies are the future of money.

The lovers of cryptocurrencies accept that "Cryptocurrencies are the future." That is what the proponents of cryptocurrencies want to propagate.

The principle of cryptocurrency relies on a solid base of distributed computing and distributed ledger technologies, such as blockchains, directed acyclic graphs (DAG).

• Technology is an essential component of cryptocurrencies. But the success of cryptocurrencies doesn't depend on technology alone.

The future of cryptocurrencies is more dependent on their adoption by the common mass.

The affair between cryptocurrencies and fiat is one-sided.

The affair between two humans dwells on mutual respect. An affair is upgraded into a relationship after a prolonged communication process. The relationship between a couple lives on two-way communication.

The affair between cryptocurrencies and fiat currencies is one-sided.

A cryptocurrency quotes its market price in terms of fiat currencies. Bitcoin Cash is valued on how many US Dollars its market rate is. The value of a US Dollar is never quoted in terms of Bitcoin Cash or any other cryptocurrencies.

Cryptocurrencies couldn't break the relationship with fiats.

• As of now, no cryptocurrency can start its existence without being fed by one or multiple fiat currencies. One always requires a fiat currency to buy a cryptocurrency.

Can real-world assets, such as gold, be directly converted to cryptocurrencies? Maybe, there are brokers who buy gold or other real-world assets in exchange for cryptocurrencies.

• The world is waiting for that day when a few cryptocurrencies can acquire a self-sustaining height of value that can claim their worth without reference to any fiat currency.

Concluding remarks

Crypto-fiat relationship is fragile.

• It is good for the development and growth of cryptocurrencies.

• Cryptocurrencies need to find a way to sustain themselves without fiat currencies.

The projected future of cryptocurrencies will come to the present time if and only if the cryptocurrencies acquire their value independent of the fiat currencies.

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Oct 26, 2022