With bitcoin smashing all-time highs, and altcoins making a huge rise, the big buzz started around the price of these so-called cryptocoins.
The market capitalisation grows and some say the prices of the cryptocurrencies are too high, they are simply overvalued. Have crypto cash become too expensive or is there a different view?
What strikes me odd is that many people still believe that fiat money like the Euro and the Dollar is still covered by gold reserves, while this was de-linked in the 70’s. By now only a very small percentage of these fiat currencies is backed by precious metal. The vast amount of valuation is not backed by real assets, it is backed by trust in the system. Trust in bank, trust in the economy and trust in its common value papers. Trust is good, great even, but is it real value we trust? In an economic sense? [...]
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