Can Bitcoin replace fiat currency to become the global currency?
Can Bitcoin replace fiat currency to become the global currency? If so, when?
According to a panel of crypto experts, bitcoin is on a path towards replacing fiat currency entirely within the next 30 years. More than 50% of the panelists believe that bitcoin will eventually overtake fiat currency by the year 2050, while close to 30% believe this could happen as early as 2035.
Breaking these findings further, an astonishing 54% of the panel thinks ‘hyperbitcoinization,’ i.e., when Bitcoin overtakes global finance, will happen by 2050. 29% believe it will happen as soon as 2035, and an additional 20% think it can occur by 2040, according to the Finder survey of a panel of 42 cryptocurrency experts. On the other hand, 44% of panelists don’t expect ‘hyperbitcoinization’ to ever occur.
The survey also finds that the majority of panelists (61%) say Bitcoin is currently undervalued, and on average, the panel expects Bitcoin to end 2021 at $66,284, 28% higher than the panel’s end-of-2021 prediction back in December 2020, but 30% lower than the end-of-2021 prediction in April of this year.
Morpher CEO Martin Fröhler, the most bullish among the panel on Bitcoin, gives an end-of-year prediction of $160,000 and says increased adoption will propel prices forward.
“Adoption by corporations and institutional investors paired with a loose monetary policy and high asset inflation will propel Bitcoin to 6 figures before the end of this year. The next halving cycle will see increased adoption of Bitcoin as a legal tender by developing countries, and until 2030, Bitcoin will have replaced gold as a global reserve asset,” Fröhler said in a statement.
Thomson Reuters technologist and futurist Joseph Raczynski and Arcane Crypto analyst Vetle Lunde, give end-of-year predictions of $75,000 and $120,000, respectively, and attribute their predictions to the move toward the institutionalization of Bitcoin.
Lunde stated, “We’re standing in the midst of the institutionalization of Bitcoin. More funds are joining the space, the first country has adopted Bitcoin as legal tender, and we have several exchange-listed companies now owning Bitcoin. I believe this trend will continue onwards.”
On the other hand, according to Deloitte’s blockchain survey report, financial professionals expect digital assets to replace government-issued currencies within a decade, or at least present a solid alternative to them. The respondents said that financial services companies must thereby get on board with cryptocurrencies, digital assets, and blockchain, or risk losing ground to rivals as crypto shakes up the industry.
Among the experts in the Deloitte survey, 76% said they believe that digital assets would be a solid alternative or replace fiat in the next five to ten years. They expect to see a positive benefit to businesses from assets such as stablecoins, central bank digital currencies, and enterprise-controlled coins.
“Opportunities for real change in several areas of the global financial markets exist for those players that explore new ways to harness the power of blockchain technology and digital assets to reimagine their business models,” Richard Walker, Deloitte’s U.S. financial-services industry blockchain leader, said in a statement.