What cryptocurrency needs in order to succeed

What cryptocurrency needs in order to succeed

Legal tender. It needs to become legal tender. That’s all folks! Until that happens, we’re all forced to sell valuable assets like ETH for hyper-inflationary poorly-backed crap like USD or EUR. And we don’t want that. We’d rather use trustless money that actually belongs to us, and which is also a gateway to modern financial tools like dY/dX, Uniswap, Compound and Dharma. The old monetary systems and the old financial system need an upgrade.

Here’s the definition of legal tender:

Legal tender is a medium of payment recognized by a legal system to be valid for meeting a financial obligation. Paper currency and coins are common forms of legal tender in many countries. Legal tender is variously defined in different jurisdictions. Formally, it is anything which when offered in payment extinguishes the debt. Thus, personal cheques, credit cards, and similar non-cash methods of payment are not usually legal tender. The law does not relieve the debt obligation until payment is tendered. Coins and banknotes are usually defined as legal tender. Some jurisdictions may forbid or restrict payment made other than by legal tender. For example, such a law might outlaw the use of foreign coins and bank notes or require a license to perform financial transactions in a foreign currency.

source: https://en.wikipedia.org/wiki/Legal_tender

While Bitcoin can be used to buy anything from huge shopping chains like BIC CAMERA, it is not legal tender in Japan, even though /r/cryptocurrency or /r/bitcoin propaganda might have convinced you otherwise (source). Realistically, we will probably not see it happen in enough countries until a cryptocurrency actually wins, meaning that because of its properties and its fair distribution, it has wide support from the young generations. Sadly, even Ethereum has had bad initial distribution: more than 40% of the ETH sold went to the top 100 purchasers (source – page 59). The years of mining that followed ensured that the distribution fairness improved, but it’s still far from optimal. New projects like Cosmos and DFINITY have such bad initial distributions that it’s not even worth considering that they might win. Projects like Ripple or Bitcoin Gold make the entire space look bad, even though their holders will turn a blind eye in the hope that they’re somehow going to get rich for just holding onto them and making others buy (I wonder how we should name this strategy, maybe “inverse pyramid” or something like that, I don’t know).

Centralized exchanges have been hacked time and time again, and their morality is also deplorable. Binance is slowly becoming as hated as Bitfinex (and Tether) because of their multiple bad decisions (like putting ETH pairs in the “ALTS MARKET” category). While decentralized exchanges will keep growing, they still won’t replace fully their centralized counterparts because people still need to buy USD/EUR in order to pay for food, utilities and rent. And decentralized exchanges that use fiat gateways are not fully trustless, and don’t get rid of the KYC/AML abuse.

There are many other issues, and the good news is that all of them are slowly getting solved. Many of the most difficult issues have already been solved. Cryptocurrencies and smart contracts platforms are slowly and surely winning. There are more brilliant minds operating in this industry than in many others. The people that are in will not turn back their mentalities. You won’t see a Monero holder respecting USD more than XMR. This just won’t happen. The enhancement is spreading, and for this reason, maybe the initial premise is actually wrong. What cryptocurrencies need is just more time, because there’s no turning back.

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