> if the currency is controlled by those who have most of it, how is this any different from government-issued currency
The difference is, if a cryptocurrency is mismanaged, people can sell their holdings and buy a better-managed currency, decreasing the value for those who have the most to lose.
That provides a selective pressure towards good economic governance, which doesn't exist with too-big-to-fail central banks that can require you to use their product because of legal tender laws and tax payments.
Also, programmable money is inherently more valuable because of new use cases it enables, like smart contracts. That is why diversifying into cryptocurrency is better than simply diversifying into a foreign government-issued currency.
Full disclaimer: I do not own, and have never owned, any cryptocurrency.
The difference is, if a cryptocurrency is mismanaged, people can sell their holdings and buy a better-managed currency, decreasing the value for those who have the most to lose.
That provides a selective pressure towards good economic governance, which doesn't exist with too-big-to-fail central banks that can require you to use their product because of legal tender laws and tax payments.
Also, programmable money is inherently more valuable because of new use cases it enables, like smart contracts. That is why diversifying into cryptocurrency is better than simply diversifying into a foreign government-issued currency.
Full disclaimer: I do not own, and have never owned, any cryptocurrency.