Is cryptocurrency safe? The most important thing to understand here is that a currency is just a place to park money. The currency itself is not an investment. When was the last time you bought loads of dollar, yen or even Indian rupee, kept it in your locker (within permissible limits) and told your friends that you have invested in dollar, yen, or Indian rupee? You don’t invest in a currency, you just park your money in it.
Now the question is: Is cryptocurrency safe? It depends upon who has issued it. There can broadly be three types of currencies.
One, a currency that has some intrinsic value like gold, silver etc. Two, a currency which has been issued against some commodity. For example, when the world followed a gold standard, the central banks used to hold gold and issue currencies against that gold. Third, fiat money, which is declared as legal tender by the government.
If the world someday decides to ban the use of gold as a currency, people still might be able to use gold for making jewellery, sheets, wires, etc. Though one might argue that the usage value of gold would be much lower than its market value, the point here is that it would be still of some use to the holder.
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