I find the whole crypto world rather baffling (perhaps I’m just getting old and I’m a bit ignorant).
Couldn’t central banks launch their own crypto currencies and kill the market ?
..
They could - and they would - if it was worth it
The market cap for all cryptocurrencies has doubled to nearly 2 trillion dollars from 2020 to 2021
The liquidity of the "normal" currency market is about 40 trillion dollars
I'd guess over 99% of the people buying cryptocurrency are just buying it as a speculative instrument so the actual demand for it is a fraction of that.
EDIT: if it wasn't clear part of my point was that if a central bank launched a stable cryptocurrency - very few people would buy it, because nearly all of them are buying it for speculation. And if the central banks launched a cryptocurrency which wasn't stable - then what would be the point? Central banks aren't concerned with just creating speculative financial instruments.
That makes a lot of sense.
It seems to me that almost everyone buys crypto as a pure speculatory “investment” even though it’s instrinsic value is built on sand.
And of course, crypto has been a favoured financial facility for large scale criminal activity.
I might be missing something but the use of crypto as a currency for of payment for goods and services is almost non existence in 99.999% of transactions.
It feels more honest to say, its just a speculative punt for almost everyone who buys it.