Blockchain is just a distributed ledger system, a neutral development in computer networking technology, but “cryptocurrency” is the attempt to use it to create digital cash, which has failed because whatever the prevailing currency is in a market is always more valuable as the fundamental medium of exchange because it’s the one the state requires payments in. And I’m not even trying to do some MMT shit directly, I don’t care here about what gives a currency value as a unit of account in general. It is just self-evident that there are lower socially determined transaction costs associated with dollars than any cryptocurrency. You need to switch your shit for dollars at some point to pay the government, which goes moreso for businesses, which are the primary nexus of transactions in the economy. If you risk your capital on a venture you don’t want to be audited or deal with legal troubles because you’ve got some ideological interest in Bitcoin or some variant. At most, you may start accepting Bitcoin to draw market share from those people, but you are constantly flipping it back into dollars. And given that Bitcoin is periodically rising in value, there are disincentives to actually spend it in transactions because it resembles a speculative asset. Why spend your Bitcoin when you can just use cash and hold the Bitcoin in case it goes up again, or goes up more in the case of bull runs?
But the less people attach it to real economic transactions because of how common sense and risk-free it is to just transact in dollars, the more it just appears as a zero-sum speculative asset. Feel free to try to make money off of it, but it’s just gambling in a game of musical chairs. People pivoted to calling it a “store of value”, but a store of value is a hedge against market volatility. It isn’t a get rich quick scheme. The market and Bitcoin are skyrocketing right now, which clearly points to it just being another speculative asset in an asset bubble. If the market tanks people are more likely to cash out of Bitcoin along with everything else in a panic to move to low-risk assets.