In a recent article on the basics of Bitcoin and other cryptocurrencies, Aleksander Berentsen and Fabian Schär of the Federal Reserve Bank of St. Louis cover the usefulness of Bitcoin and other alternative cryptoassets.
Throughout the article, Berentsen and Schär make the case that cryptoassets are well suited to become a new, important asset class. The duo goes as far to say that Bitcoin is, in some ways, more robust than many fiat currencies.
Surprisingly, Berentsen and Schär are of the belief that cryptocurrencies are a welcome addition to the current currency ecosystem. While some critics claim Bitcoin’s price should drop to zero because there is no intrinsic value found in the cryptoasset, the co-authors of the article from the Federal Reserve Bank of St. Louis point out that this argument also applies to the various government-issued currencies around the world.