Why do Crypto Currencies have value
Crypto Currencies have been around for quite some time - although the concept is fairly new to some people.....
In May 2010 Laszlo Hanyecz made what was one of the first exchanges of Bitcoin for physical goods when he exchanged 10,000 Bitcoin for 2 pizzas. Imagine it - all those years ago buying Pizza with Bitcoin. Now imagine what the payment for those 2 pizza would be worth today..... $64,565,375 (price subject to change obviously).
Bartering currencies has been around for generations - people exchanged goods for different goods, made simple trades because they wanted something that the other person or entity had. The concept is older than we think - but what gives the crypto currency value....?
The easiest explanation is that it usually provides a service. Something that someone wants to accomplish. A way to make payments without the long delays of visiting a bank, a post office, another financial institution. A way to purchase something without the necessary taxation (for some) and a measure of anonymity for others that do not want prying eyes seeing what they are buying or where the money is coming from.
How many of you have walked into a bank and heard the teller discussing something about the previous customer, perhaps even mentioning something about the transaction just performed - all of this is related to personal privacy - and people do NOT like it being meddled with or finding their personal information has been spread to the masses.
People LOVE privacy. They love the idea that their next-door-neighbour does not know what they get up to late at night, or that they can squirrel away monies without someone watching or knowing how much money they have.
For anyone that has been burgled, the privacy is the most anxious issue - the fact that a complete stranger has ransacked and touched your belongings - the invasion of privacy is ALWAYS the worst feeling from such an event - and people will go a long way to ensure that their PRIVACY is kept.
Whilst this is high on most people's agenda, it's not the only true value for a crypto currency. For a crypto currency to have perceived value it takes more than one person to BELIEVE it has value. Whilst two people is great, it has to expand beyond that - to the masses - most of whom have to agree that the idea/currency/item has merit - and they have to want it. The rise and fall of many currencies is based upon that same metric, desirability and its ability to be widely transferable from one individual to another. Whilst this can just be a transfer of currency, it often becomes part of a bigger arrangement, in the purchase and sale of other goods and items - and that's also where its value grows. The portability to send a transaction from one side of the globe to the other in seconds - when most transactions used to take months, weeks, days and so on - and now seconds later you can have paid for something and it be shipped almost immediately - WITHOUT the fear that someone has ideally intercepted your funds and your identity - whilst remaining fairly anonymous during the whole process. It seems to always lead back to the privacy of it all.
This, in my honest opinion - and you may not agree, is the most valuable part of any and all crypto currency. The value of PRIVACY will always outweigh any risk in crypto investments, trading, mining and so on.
As time progresses, and more privacy is violated by financial institutions and people in general - you will find more of the masses turning to crypto currencies to perform the simplest of transactions - like buying a couple of pizzas for example - perhaps not sixty-four million dollars though.....