There are about 1,300 crypto currencies now. More or less. The top 10 account for most of the trading value. Right now the total trading value (price x coins) is about $510 billion.
In a general tally let’s say the world supply of money issued by nation states – so-called ‘fiat’ currency totals about $40 trillion. That includes 'near money’ such as stocks, money market securities and savings, among other things.
Now right there we see a disparity. A massive gap. All these pieces of cloth/paper and metal being moved around are about 75x more than the digital currency universe today. I know not all are physically moved but you get the point.
What casual observers miss: the world is digital. Everything you do for work, play. It involves digital. Now into this digital world is being introduced currency that behaves properly in a digital environment.
Let me explain.
PayPal exists because it separated money from paper, married it to email. Which everyone thought was crazy in 1998. Because trucks filled with bags of cloth/paper with a person’s face on it meant something to hundreds of millions of people. That paper/cloth thing is how analog value is stored and traded. And it works fine.
But, in digital space, the paper/cloth thing doesn’t. It’s clunky. Digital space allows for value to have more dimensions than just face value…so with something like crypto currencies the value can be monetary, contractual, promissory, future tense, and have rules attached to it.
Basically, crypto currencies turn money into applications with digital traits. Those traits are – speed, low fees, frictionless, borderless, timeless, boundless. The limitations imposed on digital currencies are only external, limited by the application and understanding (or lack of) by people.