They say that traditional currencies are officially supported by entire states with different sectors of the economy, and cryptocurrencies are not supported by anything and therefore cannot be seriously considered at all as remotely comparable to traditional currencies.
Let’s see. What gives a huge number of people faith in the fact that it makes sense to hold the American dollar or, for example, the euro? Understanding that such a currency is stable and for the preservation of its value is the responsibility of the state interested in receiving revenues through taxes in the form of taxes, etc.
Of course, there is no state that is responsible for the preservation of value. But even in traditional currencies, objectively speaking, no state guarantees that the national currency will be stable and will not fall in price. Moreover, it is never meant that this currency will grow in value or otherwise develop and strengthen its position.
The same in cryptocurrencies. There are no guarantees and obligations from a certain central authority, but there are a cumulative interest and financial motivation regarding the viability of the currency. In the cryptocurrency market, this financial motivation is for those who invest in them, and for those who are engaged in mining.
If the dollar rests on the interest of the US state to make money, then Bitcoin rests on the interest of investors and miners to make money.
The key difference, in this case, consists only in the fact that the state has regulatory instruments that do not allow the market to spontaneously loosen the exchange rate of the national currency. But cryptocurrency does not have such regulation and, therefore, demand and supply can grow very disproportionately, leading to significant fluctuations in the rate.
A huge number of companies have already invested tens of billions of dollars both directly in cryptocurrency and in the development of the accompanying market infrastructure.
And it is these investments that take the form of huge mining farms, equipment manufacturing plants, institutional investment funds, major exchanges and much more general interest in the development of a cryptocurrency market comparable in strength to the interest of the state in generating income through national currencies.
And at this stage, it is this interest that is the main guarantee that cryptocurrency will not suddenly disappear anywhere tomorrow, and the rapid growth of crypto economics will not just stop.