Bitcoin Unlikely To Replace Fiat
Since Bitcoin (BTC) was thrust into this world, its most fervent advocates understood that it was created to be a digital alternative to the incumbent financial system. While this underlying raison d’etre has been upheld over time, some pundits claim that the cryptocurrency won’t replace the fiat system.
Eugene Kaspersky, the Russian genius behind Kaspersky Lab, is in that boat. He recently took to an interview with Arabian Business to touch on his theory on the subject matter. The purported billionaire, whose wealth was enabled through the Internet and technology, stated that cryptocurrencies are “a great idea,” but noted that as it stands, society at large isn’t ready for such an innovation. He explained that for the world to be fine with encrypted, Internet-based mediums of exchanges, the “world must be united,” as “governments will want to control them” for their own ulterior motives.
He added that a world united isn’t out of the cards, noting that “perhaps in 100 years’ time,” all the world’s governments would join into one entity, leading to a centralized, ubiquitous currency. This could very be a digital asset instead of banknotes, Kaspersky hinted.
But, he noted that today’s cryptocurrencies, like Bitcoin, currently don’t have the ability to replace the entire financial system. He lauded blockchain technologies, saying that slight modifications could make it perfect host for a global economy, but made it clear that today’s systems would likely be too immature to overthrow Wall Street and its underlings. Kaspersky is likely touching on the fact that Bitcoin’s transactional throughput is limited, but is forgetting to make reference to the Lightning Network and other pro-scaling solutions.
Many Beg To Differ
Some have begged to differ, claiming that Bitcoin is poised to replace the incumbent financial system. ShapeShift CEO Erik Voorhees noted that crypto’s rise to worldwide dominance may be inevitable, as the asset class poses an existential threat that decentralized money poses to centralized systems. Voorhees elaborated:
I’ve felt like it has always had a significant potential to take over the world… and I still do. I still think that it is going to replace government fiat over time, especially as people continue to figure out that there is an alternative to that scam.
John McAfee has also been skeptical of fiat, especially the U.S. dollar. The U.S. presidential candidate, who is currently on the run from the authorities, noted that in five years time, fiat will “be on its last legs.”
Tim Draper has perpetuated this sentiment too. Per previous reports from Ethereum World News, the Silicon Valley venture capitalist explained in an interview with Fox Business that in five years time, only criminals may be using fiat currencies.
Even Elon Musk, the chief executive of Tesla, SpaceX, OpenAi, the Boring Company, among other Silicon Valley companies, has thrown in his hat on the subject matter, but was hesitant to call government-issued currencies a scam or something of similar nature. Musk told ARK Invest’s “FYI” podcast that “without a doubt,” cryptocurrencies are a “far better way to transfer value than pieces of paper.”
Photo by Christopher Gower on Unsplash
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