Scarcity by itself is not, however, enough to create value—there has to more useful tips be demand. Since cryptocurrencies cannot easily be used to make most payments and have no other intrinsic uses, the only reason they have value is because many people seem to think they are good investments. If that changed, their value could quickly drop to nothing. Institutional investors are responsible for most of the trading volume on Binance. So even though it saw a huge upswing in trading volume, there wasn8217;t as much user growth in 2021. Community Rules Under current accounting guidelines, cryptocurrencies aren’t considered cash or cash equivalents since they lack the former’s liquidity and the latter’s stable value. However, the accounting treatment of cryptocurrencies is still uncertain as neither the International Finance Reporting Standards or the American Institute of CPAs has yet to issue official guidance.