Cryptocurrencies have suffered a hard beating over recent months. For example, the U.S. dollar/Bitcoin exchange rate fell from almost $70,000 in early November 2021 to below $20,000 in late June and, despite ups and downs, dipped to $19,733 on September 15. Historically, Bitcoin – by far the most popular form of cryptocurrency – has been a success story for those who bought it: the exchange rate versus the dollar was below $3,000 five years ago. Yet, many bitcoin advocates have been disappointed in two respects. This cryptocurrency has failed to become a widespread means of payment and has turned out to be a poor defense of purchasing power in periods of uncertainty and inflation. This is surprising. Bitcoin’s supply is limited to 21 million units. Since more than 19 million units, or 90 percent, have already been issued (“mined”), most people expected that the cap would have caused a constant rise in its dollar-denominated price.
Full report : The future of cryptocurrencies.
