Bitcoin and cryptocurrencies in general has come to take the place of paper money in the world economy, this is the accretion of some, while others think it may not be stable, but whatever is the case there is no gain saying that, the world is moving towards digital economy and cryptocurrencies is the panacea to digital money. This article gives a divert view on the assertion of crypto ruling the world economy.
THE FUTURE OF BITCOIN AND OTHER CRYPTOCURRENCY
Crypto has come to stay, in the world of Adams Barona, published in his blog he puts it this way ‘The future outlook for bitcoin is the subject of much debate. While the financial media is proliferated by so-called crypto-evangelists, Harvard University Professor of Economics and Public Policy Kenneth Rogoff suggests that the “overwhelming sentiment” among crypto advocates is that the total “market capitalization of cryptocurrencies could explode over the next five years,’ this can summarily explain that, crypto will see a continual rise in value.
For Ryan Haar, in her blog post titled The Future of Cryptocurrency: 5 Experts’ Predictions After a “Breakthrough” 2021, she aptly noted that ‘We can speculate on what value cryptocurrency may have for investors in the coming months and years (and many will), but the reality is it’s still a new and speculative investment, without much history on which to base predictions. No matter what a given expert thinks or says, no one really knows. That’s why it’s important to only invest what you’re prepared to lose, and stick to more conventional investments for long-term wealth building.’
Keep your investments small, and never put crypto investments above any other financial goals like saving for retirement and paying off high interest debt.
WILL CRYPTOCURRENCY REPLACE MONEY?
This question may be debatable but the answer can simply be a big yes, arguing in favor of stable coin, Christian Catalini and Jai Massari noted that, ‘The writing is on the wall that: Cryptocurrencies are likely going to play a significant role in the future financial system. The U.S. Federal Reserve has called for a comprehensive regulatory framework for crypto and is exploring a central bank digital currency.’ This may just be a call for a complete overhaul of the money system but is it really possible? Only time will tell.
Further opining in the discussion, Nathan Reiff explained that ‘there are also some huge challenges and concerns with this scenario. If cryptocurrencies will outpace money in terms of usage, traditional currencies will lose value without any means of recourse. Should cryptocurrencies take over entirely, new infrastructure would have to be developed in order to allow the world to adapt. There would inevitably be difficulties with the transition, as cash could become incompatible quite quickly, leaving some people with lost assets. Established financial institutions would likely have to scramble to change their ways.’ This picture painted above shows that with the right structure on ground, crypto may take the place of money.
The article above has analyze the concern of some and the analysis of the possibility of crypto ruling the financial world, as noted in the introduction, the world is moving toward a digital money system, and cryptocurrency might just be the answer.