Current cryptocurrencies are not only a suitable instrument to reduce the amount of money in circulation , but also an ideal speculative to...
Current cryptocurrencies are not only a suitable instrument to reduce the amount of money in circulation, but also an ideal speculative tool. Since the value of current cryptocurrencies is based on society's subjective judgement, they have virtually no link to objective economic processes and their exchange rates are easily manipulated, they are ideal tools for speculation. With sufficient resources, manipulative participants can force the exchange rate to fluctuate with smaller or even larger amplitudes, thus creating the conditions for speculative profit.
The current cryptocurrencies would be protected from speculative manipulation if they were more widely used as money and if they had a concrete economic link, but speculative use is making it difficult to spread.
Practice shows that the idealized concept of cryptocurrency, its independence from the state, has not strengthened the foundations of the instrument but has increased its vulnerability and created an ideal speculative instrument.
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