I’m a great fan of Bitcoin and its decentralized functionality. But from a practical perspective cryptocurrencies today have one fundamental flaw: lack of legal backing. Where the rubber meets the road is our legal systems, and today’s cryptocurrencies, even bitcoin, are outside of legal control.
Great, some people may think, let’s make a currency that is not dependent on the evil banksters around the world. Unfortunately, when we extrapolate that idea we end up with a society separate from the mainstream society. You can’t buy a Big Mac with bitcoins directly, and there is a reason for that, namely the lack of legal foundation.
Sure, cryptocurrencies still have actual value in fiat terms such as in dollars or euros, but they are like fleas on the back of the fiat elephant.