I always wondered how cryptocurrency effected physical currencies, for example the US Dollar. I had to wrap my head around the idea that something that doesn't physically exist has a physical value. Like people paying real money for virtual items/skins that have no real value. It has to effect physical currency in a very bad way. If I can sign up for a bunch of crypto airdrops and then cash out all the cryptocurrencies I got for USD.
What do you think that will do to the US dollar? Well, for one the value of USD would, or if not should go down in value. But then again it made me question... What is "real" value? Does USD actually hold a real value? The definition (According to Investopedia) of real value is "The real value of an item, also called its relative price, is its nominal value adjusted for inflation and measures that value in terms of another item."
So what comes to terms is value is what is perceived by the individual as beneficial in some way. But, since knowledge is somewhat controlled people will believe that anything they are told has a value holds a value. Social Influences hold the key (such as Social media, TV, News Paper, radio ETC) of sustaining a current value of a currency (Physical or Not). So the truth be told one thing that really effects the value of currencies is Influence. No matter how many times you cash out Your crypto's to a physical currency I wouldn't worry it would have too much influence on the price. But only time will tell.
