Experts Say Bitcoin Will Supplant US Dollar In Five Years
Volatility is a double-edged sword.
On one hand, it fuels interest in the markets, and on the other it can cause quick burnouts.
One thing’s for sure, and that’s the rejuvenated interest in cryptocurrency this year, especially after its roller-coaster rides that have both recovered with nobody even raising an eyebrow.
$700 billion wipe out in May because of a tweet about power consumption? All that did was get more people interested. $200 billion drop yesterday with Bitcoin ending up under $29,000? Not much to consider.
Had these been traditional assets a few years ago, there would have been market and government commotion for even a tenth of these amounts, but clearly the community is rapidly growing and the comprehensive nature that decentralized currencies and their functionality have is making people get in on the action.
The wild predictions have been relatively quiet, especially from within traditional institutions, but today, a ‘futurist’ working for one such institution, Thomson Reuters, has aired his wild prediction that Bitcoin may become more popular than the US dollar by 2050.
2050 seems a very long way off, especially when considering that some countries have a massive Bitcoin usage presence, especially in South America, a dynamic that has been the case since the introduction of Bitcoin some 11 years ago.
El Salvador, in Central America, recently adopted Bitcoin as an official currency, making it legal tender alongside the US Dollar, empowering 70% of the country’s previously unbanked population. Not only did this give them access to the local electronic payments and e-commerce markets, but it has made them truly global citizens.
This particular ‘futurist’, Joseph Raczynski, believes bitcoin will initially overtake the dollar by 2025 with a value of $150,000 by that time.
At a Forbes panel, he said “Some countries will leverage bitcoin as their primary currency of choice. With fixed circulation, ease of transfer, it will serve them well to move to a ‘bankless’ model inherent in this ecosystem.”
That’s already happening, a clear example being that of El Salvador.
Described by a panel of 42 experts who think that ‘hyperbitcoinisation’ will occur within the next 30 years, while also forecasting that Bitcoin could be worth $4.3 million by 2030, there is thought that by 2050, it will supplant the US dollar globally.
Opinions vary in the size of their predictions. Finance comparison site Finder.com has stated that 54% of these 42 panelists said they expected ‘hyperbitcoinisation’ to occur by 2050, with 29% predicting it could happen as soon as 2035.
Thomson Reuters’ Joseph Raczynski, also on the panel, said that he predicts that Bitcoin will overtake the US dollar as the dominant form of finance by 2050.
When taking the view of the entire panel into account, the prediction was even more interesting, with a far more bullish view than that of Joseph Raczynski on Bitcoin’s medium and long term prospects, predicting an average value of US$318,417 at the end of 2025.
Why single out one panelist? Well, purely because he works for a large financial data company with vast experience in institutional financial markets, and is a futurist.
His prediction may be conservative compared to the overall panel outcome, but still, it shows which way those whose job it is to come up with data think this is going.