The former head of blockchain EY talks about the imminent bifurcation of Bitcoin

Bitcoin (BTC) is a virtual currency that continues to move forward but always preserves its identity. There are many plans for this in the future and different ways it can take. One of these possibilities is to be embraced by institutions all over the world.

These companies will facilitate investments in digital assets or purchase virtual currency directly. However, there is another possibility. Bitcoin could continue with its decentralization path away from traditional financial companies.

This is what he believes Angus Champion de Crespigny, councilor of blockchain projects and a former blockchain EY. He wrote an article about CoinDesk's 2018 Year in Review series in which he talks about this birfurcation in the Bitcoin path for the future.

"While both are important in their own way, considering how institutions operate, it is likely that these two narratives will conflict," he wrote. "What we will probably see is a bifurcation in the use of bitcoins all over the world for different purposes and, consequently, how it is managed".

In his opinion, Bitcoin it can be recognized as a superior form of money because of the monetary policy it has. This would allow companies to adopt Bitcoin. This means that pension funds, insurers and, perhaps, even central banks. Furthermore, people could also be included. This would happen if the institutions discovered that there is a desire for people to buy, sell and hold the asset.

One of the main challenges facing institutions, as Champion de Crespigny explains, is custody. Financial institutions have always relied on custody to third parties. How will private keys be guaranteed? What policies will be applied by the institutions during the very hard spades? Clearly, there are no institutions with experience in managing Bitcoin custody. Now, there are some companies that are starting to offer custody services.

The other path to Bitcoin must be considered as a way to be protected by the policies adopted by centralized governments around the world. There are some countries where Bitcoin has already been banned, including China or Zimbabwe. Although it can be used by individuals, virtual currency will face many complications such as bans in different countries. In this case, Bitcoin would not be able to prosper.

At the same time, Bitcoin will also need to be more user-friendly and reduce its volatility to be used daily by individuals.

However, Bitcoin could also be used in both ways. At the moment, we see that individuals in countries like Venezuela, or even Zimbabwe, are using the most popular digital currency to improve their situation. Both countries have experienced hyperinflation in recent years and their local currency is worthless.

In addition to this, there are some companies like Nasdaq or Intercontinental Exchange (ICE) that are ready to market cryptographic products for investors. This shows that although there are several ways to Bitcoin, both can also be successful at the same time.

ICE will launch the so-called Bakkt platform while the Nasdaq is aiming to launch Bitcoin futures contracts.