Crypto’s original use case was censorship resistant better money… emphasis on the “better money” “Hodling” paid better than spending, which in turn ruined hodling Unfortunately, economic incentives always come into play to give a good idea a really hard dose of reality. Over time, crypto’s perception as future money overtook its present usefulness, and the price followed suit.
This was also around the time that the fees for Bitcoin, the coin with the overwhelming majority of real world use at the time, started to spike, destroying its usefulness as regular money. As a result, it became far more profitable to simply hold on to cryptocurrency and watch it go up in value than to attempt to use it.
Consequentially, nine long years into this experiment, still nearly no one is using crypto for payments. However, “hodling” too much had a price: namely, tanking the price of crypto.
Price is based on present use, or speculative on future use. In absence of present use, future use becomes the sole source of value, which becomes entirely speculative.
Not using long-term eventually wears out speculative hope of one day being used, which results in speculative value tanking. This diminishes the value of holding to begin with. Read more from dashforcenews.com…
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