Is cryptocurrency an asset or a currency?


Even if transactions are carried out via cryptocurrency, why is cryptocurrency still not considered as a currency?

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Cryptocurrency is not like the regular Fiat money. It’s value is not backed up by the government. The value of a currency is decided by the size of the economy and the amount in circulation is controlled by the central bank in order to ensure stable growth. There are no banks that can supply cryptocurrency and hence the ability of cryptocurrency to meet the demand and supply is evidently less. This is the reason why the value of cryptocurrency fluctuates and that in turn explains why Cryptocurrency is an asset and not a currency.

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