The coin of the realm is important to governments all over the world, as well as obviously to the people that utilize that currency for their transactions; done so, in such a routine way, that most people take it as a given, that currency such as the United States dollar has existed, seemingly forever, though, in truth, it has not; of which, we find historically that many a currency, upon the demise or revolution within a nation, loses all or most of its value, because of the fact that the faith and confidence behind its fiat currency has been permanently broken. So then, this is why virtually every accountable government, understands that is has a responsibility to safeguard their currency, for it can be said, that nations rise and nations fall, upon the stability of the coin of the realm.
When it comes to cryptocurrency, there is no real government regulation of it, nor is there any independent agency that meaningfully regulates such, which is why cryptocurrency is so volatile in its value; and further to the point, this is the reason why cryptocurrency is not actually a currency, at all. In point of fact, virtually no licit transactions are done through cryptocurrency because of that lack of stability; in which, we find that nobody in the business world desires to do transactions in cryptocurrency because speculation is not part and parcel of how businesses are meant to be run and conducted; rather businesses as well as people require that their monetary transactions be done in a medium that is universally accepted, stable, and fungible.
Yet, despite the fact that cryptocurrency is not a currency, the value of all the cryptocurrency in existence, is indeed a staggering sum of money, in which it has to be recognized that cryptocurrency is not backed by anything, other than the confidence of those that speculate in it. Further to the point, those that speculate in cryptocurrency must recognize that whatever monies that they have put forth, to purchase cryptocurrency, provides them with nothing tangible, such as a stock or bond certificate, or of that which represents legal tender of a nation. In other words, those that speculate with cryptocurrency are doing so, without a net, and because cryptocurrency is not regulated, makes such essentially an unregulated and unregistered security. That is to say, there is basically nothing or very little actually backstopping cryptocurrency, whatsoever, which signifies that there are no or little safeguards for those that speculate in cryptocurrencies, at all.
As in a Ponzi scheme or a pyramid scheme, all may be good for a while, but eventually there comes a point, in which, those that have made their money, cash out – and those that got in late, end up losing their speculation. Perhaps there is a place for cryptocurrency in the world of speculation or currency, but cryptocurrency as currently structured is not a currency and never will be; because a currency of any real value requires universal acceptance, transparency, as well as the necessary regulations, structures, and protocols that are required to help maintain that value and worth.