Anyone who has followed our work here at theOptionsEdge.Com knows that we are big fans of the technology that supports the cryptocurrencies, we are simply not gung-ho of owning crypto as a means to getting rich, at the current time. The fundamental problem with crypto is that they have not found their reason to be. Proponents of Bitcoin took a shine to the currency as they argued that it could be used for micropayment. But the structure of the currency is one that assures it cannot be used for such tasks. The number of Bitcoins that can ever exist is limited to about 21 million and the cost to mine Bitcoin goes up as the supply of bitcoin approaches that limit. As a result, the cost of mining bitcoins will only go up until it is too expensive to transact.
Bitcoin, and indeed all cryptos captured peoples imagination because their price rose to unheard of prices. One could convince oneself that the price was warranted because of the ever-increasing cost of mining. But as we are in the process of learning, cryptos need a reason to exist beyond speculation. Once the world figures out what to do with distributed ledgers, the cryptos associated with those economic goods and services are likely to develop intrinsic value.
