Meriam-Webster defines “coin of the realm” as: 1. The legal money of a country, or 2. Something valued or used as if it were money in a particular sphere.
Investors and cryptocurrency enthusiasts should also consider another possible definition. A country’s coin of the realm (legal tender) is what the government (King) says it is. Governments do not like competition. Bitcoin and its crypto cousins represent direct competition to the government’s money.
Based on recent regulatory activity by number of countries, it is clear that governments are not enthusiastic about cryptocurrency and are likely to continue to marginalize the concept through increasing regulation.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA