I get the technology. I understand (basically) how the blockchain works. What I don’t understand is how cryptocurrencies represent stores of value.

I’ll give you an alternative definition of a currency–extremely simplified: Something an organization with some level of military power says it will accept as payment for resources/services/products. And they’ll let OTHER PEOPLE use it also.

The military power is a really important piece of this.

If you or your friends (allies) can’t or won’t physically protect my resources and products from being taken by someone else, I won’t have a lot of faith in your currency.

If you or your friends (allies) can’t or won’t physically prevent someone from forcing me to provide services at gunpoint, I don’t have a lot of faith in your currency.

On tougher terms: if you and your friends (allies) don’t have the capacity to take resources from another organization, I don’t have a lot of faith in your currency.

We could debate the question of to what degree the United States government is willing to provide this protection all day. But I don’t see how cryptos can accomplish this at all, unless they are government backed cryptos.

I’m not pro or anti cryptocurrencies–just explaining what I don’t understand about them being a store of value. And I know this can be picked apart–go ahead. It’s simply a mental exercise to try and figure out where these things fit together.