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Comment by BiasRegularizer

I believe this applies to all currencies - they don't have intrinsic values. The values are derived from the market. Be it USD, BTC, EUR, or the Zimbabwean dollar. However, the purpose of currency exists as a vehicle for wealth transfer.

IMO the biggest problem with most cryptocurrencies is their deflationary nature. Limited supply means they behave more like assets than currency. As currency nobody would want to spend it as they gain value over time. As an asset it lacks intrinsic value, and therefore overall market cap will tank slowly.

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