Each particular coin/token has it’s own issuance criteria, some coins will “melt” coins created if a certain function is met, so slightly deflating it’s supply at that point. Some have huge pre-mines, others minted at various stages and quantities. Thousands of different cryptocurrencies minting and destroying their coin or token at different levels over different time spans, question is, so what?
We live in a world of 190 odd countries, most with it’s own currency. If Zimbabwe decides to print another trillion Zimbabwean Dollars would that affect the value of the Canadian Dollar?
No of course not, if you think about it why would it as it’s not intrinsically linked. The Zimbabwaen Dollar would devalue due to the base currency inflation, but not any other currency not pegged in any way.
It’s the same difference with cryptocurrencies, what one does to it’s supply doesn’t necessarily affect any other coin.
The unique feature of Bitcoin is the fact it’s truly decentralised. There is no CEO or headquarters, no one controls the protocol, this is left to it’s fundamental algorithms which can’t be influenced by people.
If you wanted to stop any other alt coin, governments could turn up at the office and shut the project down, or indict the CEO or founders etc with whatever they like.
Alternatively, the project founders could for whatever reason, alter the state of the blockchain as was done by the Ethereum devs after the DAO Hack in 2016, whether you consider this the right course of action or not, the fact is they could and did change the protocol.
This becomes a trust issue. Nobody is going to treat any coin as a store of value if your never quite sure if it couldn’t be manipulated in some way.
Consider this, if some one offered you 1 Bitcoin or 10,767 TomoChain (random picked coin), which would you chose, the values are identical at the moment, if you were told you had to hold them for 5 years?
Fact is, 90% or more of all the alt coins out now won’t be around in 5 years.
Gold and Silver are used as let’s be fair, historically there was no alternative. Gold is just about perfect, doesn’t tarnish,rust, malleable, inert basically last forever.
Rhenium is too rare and probably toxic, platinum too hard to work(think it needs massive temperatures to melt) and the other metals must have some drawback of kinds.
Money has definitive criteria to meet :
1 Acts as a medium of Exchange
2 Is a unit of Account
3 Acts as a store of value
i/ Fungible ii/ Durable ii/ Divisible iv/Portable v/ Acceptable vi/ Limited in Supply vii/ Uniform.
If you have something that qualifies all the above, you’ve got yourself hard money.
FIAT’s are considered currencies rather than money as they don’t fulfil the criteria as a store of value.
Gold is preferred above all else because of it’s perceived value proposition over eons and as being desired, trusted & fungible.