Ripple Labs, Inc. is currently in a legal battle with the SEC over their cryptocurrency XRP. Ripple is charged with selling XRP as an unregistered security; due to ongoing litigation, the coin has been restricted by many US-based exchanges. Ripple, XRP holders, and cryptocurrency enthusiasts staunchly (and correctly) argue the SEC’s accusations are without merit and this coin is a currency, but the general rhetoric surrounding cryptocurrency would sooner lead you to the SEC’s conclusion.
A frenzy of people bought “shares of doggy stock” earlier this year. Even novice cryptocurrency holders recognize this terminology is incorrect, but economists are laughing just as hard at the latter crowd. "Cash out, take profits.” “This coin went up while that coin went down.” Many use these phrases out of habit, it’s hard not to adopt them. All of these phrases anchor a cryptocurrency to fiat, which hinders their ability to be viewed as currencies from both a regulatory standpoint as well as a casual mindset.
If you exchanged United States Dollars for Euros in the past, you aren’t "cashing out" if you exchange back, you're just converting - moving money around. If mass adoption of cryptocurrency is to happen, the attitude needs to change to one that isn't anchored in fiat. The starting point is not to say "what is x at, what is the price of x, how much is x, x went up, x went down," but to talk about the purchasing power of x. Talk about the utility.
Cryptocurrency must be treated as just that - a currency. One USD is, was, and always will be worth one USD; one Venezuelan Bolivar is, was, and always will be worth one Venezuelan Bolivar. What matters is what that particular currency does for you.
The proper question to ask is, "What is this currency’s purchasing power?" A child in a candy store doesn’t hold up a dollar and ask what it’s worth, they ask how much product they can obtain with the amount of currency they hold. Cryptocurrency is frequently viewed as the fiat-killer, a return to a standard of scarcity to correct a broken system - let’s help it stand on its own.
