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A good number of cryptographic experts believe without a doubt that one day, the world's number one cryptocurrency, Bitcoin, will eventually overthrow traditional legal currencies as a means of prominent exchange in the world. Others believe that Bitcoin does not meet the criteria for money and therefore lacks the ability to replace fiat money.
The traditional monetary system has seen many changes over the past 20 years, but none of these changes has been significant as the introduction of Bitcoin on January 3, 2009. Bitcoin was created to become a direct competitor to the standardized monetary system in every respect , which is leading to speculation since then, if Bitcoin will ever replace fiat.
Although it is hard to imagine that all existing currencies will be replaced exclusively by Bitcoin, that day may be closer than we think.
They will laugh at you for not using the crypt & # 39;
The venture capitalist investor and billionaire Bitcoin bull Timper, for example, is convinced that, while the universe of cryptocurrency continues to expand, the forced currency circulation will fall and will be replaced by cryptocurrencies. He recently doubled his bullish appeal of $ 250,000 per currency over the next four years, and predicted that the fiat currency will disappear much faster than expected.
"In five years, you will try to buy a coffee with fiat money and they will mock you because you do not use cryptography," he said.
Tim Draper firmly adheres to his prediction of Bitcoin $ 250,000 by 2022: https://t.co/l4I018sjjz pic.twitter.com/kfxAyF2aoV
– Chepicap (@Chepicap) 21 September 2018
His son, Adam Draper, who is the founder and CEO of Boost VC, recently said that, in 10 years, there will be more digital money in the world than fiat.
Read more: "In 10 years, there will be more digital money in the world than fiat"
Most investors agree that over time we will see that Bitcoin will hold an ever-increasing share of the traditional fiat currency.
According to Frank Holmes of US Global Investors, today in the United States, the stakes amount to $ 1.59 trillion and according to the Chicago Feds, this figure could fall to $ 501 billion within 10 years as Bitcoin and cryptocurrency in general, become more widely used to make transactions.
The St. Louis Fed made similar predictions, stating that there will be a rapid transition from cash to encryption.
"In the near future, a nearby cash substitute will be developed that will quickly drive out cash as a means of payment.A competitor is Bitcoin or some other cryptocurrency.While the cryptocurrencies still present many drawbacks, these problems could quickly disappear with the emergence of large-scale off-line payment networks and other scalability solutions, "they said.
Researchers at Imperial College London and the eToro trading platform, which assessed key roles in traditional currency and measured how close cryptocurrency has come to meet them, have said that new payment systems will not emerge from a day to day, but it is worth noting that the concept of money has already evolved from cash to digital or non-contact payments.
"The wider use of cryptocurrencies and crypto-activity is just the next natural step."
Read more: 8 long-term Bitcoin price forecasts by experts
Different results for each country
While the United States at least shows willingness to explore the possibility that Bitcoin becomes the world's leading currency, countries such as China continue to show concerns over the decline in the use of cash that could lead to alternative payment methods such as Bitcoin.
Each country responds in its own unique way to the use of Bitcoin. Therefore, the effect of Bitcoin will be very different in different parts of the world. In some countries Bitcoin could completely overthrow the Fiat, while in other countries Bitcoin and Fiat would coexist.
Read more: China's cashless revolution could embrace the crypt, but it probably will not
While many cryptocurrency fans can not wait for that moment when the traditional fiat will completely disappear and see Bitcoin emerge as the world's single currency, governments and central banks see many challenges that stand out within this scenario.
If cryptocurrencies outweigh cash in terms of use, traditional currencies will quickly lose value without any means of recovery. There would inevitably be difficulties with this transition, as established governments should probably strive to change their ways to keep up.
Given that cryptocurrencies would work with a far lower view of government, governments would lose control over central currencies and could no longer, for example, determine the amount of currency to be printed in response to external and domestic pressures. Bitcoin enthusiasts, who are hard to die, consider it a positive aspect, but the general public may suffer from a certain level of anxiety for this scenario. After all, not everyone will be ready or willing to have full control over their finances.
Researcher at the Federal Reserve Bank of St. Louis, Aleksander Berentsen and his colleague, Fabian Schar, have said that it is relatively easy for central banks to create their own cryptocurrency, but stressed that the key features of cryptocurrencies are a red flag for central banks.
"In general, we do not think that a central bank should be in the business to meet the demand for anonymous payments. We welcome anonymous cryptocurrencies, but we do not agree with the view that the government should provide them, "they said.
Read more: The Federal Reserve is not interested in launching its cryptocurrency
& # 39; Bitcoin fails the basic test of which currency should be & # 39;
John Williams, president and CEO of the Federal Reserve Bank of New York, is not worried that Bitcoin will replace the fiat. According to him, Bitcoin and other cryptocurrencies can not replace the US dollar because they fail the basic test of what a currency should be.
"Setting up or institutionalizing bitcoins and other cryptocurrencies is problematic," said Williams. "They have problems with fraud, money laundering and terrorist financing problems." There are many problems there. & # 39;
Since fiat money still has the overwhelming support of most governments around the world, it is unlikely that Bitcoin will replace the fiat currency anytime soon. Only if the whole world went digital, Bitcoin could become a global threat to legal money.
Read more: Bitcoin is dead? 8 reasons why it is NOT
BTC coffee, anyone?
But give it another 10 years and we may all have forgotten that we used fiat money every day.
At least that's what Twitter CEO and Square Jack Dorsey predicts. According to him, Bitcoin will eventually emerge as the single currency in the world and will replace all other legal money.
"In the end the world will have a single currency, the internet will have a single currency. Personally I think it will be bitcoin, "said Dorsey. "It will probably happen over ten years, but it could go faster."
Read more: What happens to Bitcoin if the stock market collapses?
Read more: Bitcoin will recover in 2019?, 9 Bitcoin price predictions for 2019 by cryptographic experts
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