Cryptocurrencies Will Replace Fiat By 2030, International Blockchain Speaker Claims

  • Nicholas Merten, the founder of the largest crypto Youtube channel (DataDash), thinks cryptos will replace fiat money during 2020-2030.
  • Merten has said that blockchain technology and cryptocurrencies will “reshape the way we think about trust and money.”

Nicholas Merten, the founder of DataDash, the largest cryptocurrency YouTube channel with over 316,000 subscribers, recently noted that crypto will have “four major cycles” including the “Silk Road phase” from 2011-2013, the “retail speculation” phase from 2016-2017, the “institutional speculation” phase from 2019-2020, and finally the “crypto replaces fiat” phase from 2020-2030.

According to Merten, blockchain technology and cryptocurrencies will “reshape the way we think about trust and money.”

If Criminals Use It, Then It Must Be Useful

As most crypto enthusiasts would know, the now defunct Silk Road was a large online black market where people had been buying and selling controlled substances (drugs), and other types of illicit goods through the use of the pseudonymous digital currency bitcoin. Many IT analysts argue that if criminals are using your technology, then it must be useful and may also have other more legitimate use cases.

Clearly, cryptocurrencies were able to serve as an effective medium of exchange on Silk Road’s underground market.- as the US Federal Bureau of Investigation (FBI) managed to seize 144,000 bitcoins (BTC) (worth $28.5 million at the time) after cracking down on the illegal network.

Silk Road Indirectly Helps Introduce Crypto To Retail Investors

Most of the cryptocurrency belonged to Dread Pirate Robers, the owner of the Silk Road – allegedly Ross Ulbricht. Although Ulbricht is now serving two life sentences without the possibility of parole at a high security federal prison in Colorado, the large number of successful cryptocurrency transactions carried out on the Silk Road may have caught the attention of retail investors.

As Merten noted, the retail speculation phase of cryptoassets came just a few years after the Silk Road was shut down (in October 2013). With a few ups and downs, crypto prices did steadily increased from 2013 to 2016.

In 2017, digital currency prices hit record highs – which was largely due to large investments made by retail investors in highly speculative blockchain-based digital assets.

Xapo Founder: Unrealistic To Expect That Cryptos Will Replace Fiat

Currently, the market capitalization of the crypto market is of about $200 billion – which is considerably lower than its all-time of high of over $800 billion. However, to put things into perspective, the digital asset market was only valued at around $20 billion in January of 2017 – which means that cryptos have (overall) appreciated in value by 10x in (almost) the past two years.

As Merten pointed out, we are now beginning to see more institutional players enter the crypto space such as Fidelity Investments’ digital asset project, the New York Stock Exchange’s crypto platform (Bakkt), Goldman Sachs’ bitcoin derivatives products, among many others.

However, Merten’s assertion that cryptocurrencies will replace fiat may be quite far-fetched as early bitcoin adopter and founder of Xapo, Wences Casares, pointed out:

bitcoin could change money the way the internet changed information but this idea that a blockchain can be used to change an asset that already derives its value from a central authority like title insurance, or banks, or securities settlement is really non-sensical. It’s not true and it doesn’t make any sense.

Author: Omar Faridi

 

Bitcoin Will Become a Global Reserve Asset – Xapo President

The president of Xapo, Ted Rogers has predicted that Bitcoin will become the future of the global reserve asset. The possibility of the cryptocurrency becoming part of the list of currencies in the Special Drawing Right (SDR) of the International Monetary Fund (IMF) has been ruled out by some experts for some reasons.


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According to him, the tendency for Bitcoin to achieve this feat is so high that questions about its future should be “when”, not “if”.  “It’s a question of when not if Bitcoin is going to become the global reserve asset for individuals, institutions, and governments, “he said. He added that Bitcoin is going to replace gold: “It is going to replace gold and it may also become a ubiquitous global currency.”

Foreign reserve assets or currencies form parts of the International Monetary Fund’s SDR. The SDR was designed in 1969 by the IMF to support global trade when gold and the US dollars were in shortage.

Currently, the SDR consist of the US dollar, pounds sterling, Chinese Yuan and Japanese Yen as reserve assets. Considering the fact that these are reviewed every five years, there is the possibility that Bitcoin can dine with the above listed currencies in the future.

There have been many times the cryptocurrency has been subjected to intensive criticisms. Some experts have labelled Bitcoin as a scam, and the cryptocurrency market as a fraud.

The Twitter CEO holds a higher hope that Bitcoin will surely be the future of finance. Rogers has been said to hold $10 billion worth of Bitcoin in an underground vault, hence having a fair hope in the digital asset. Rogers also said in an interview that the Bitcoin price will stabilize for the few days ahead.

“Over the next 7 to 14 days, I kind of expect it (Bitcoin’s price) to be not too far from where it is now,”he said.

Some analysts believe that there is no way Bitcoin can become part of the SDR. According to them, it can form a part of individuals’ unofficial reserves but has no future as it is portrayed to be.

Bitcoin has struggled to win the hearts of many countries to become a global denomination. Even when Bitcoin transaction becomes universally possible, it will still struggle to have the support of global economies.

The cryptocurrency has not disappointed after its introduction. It has become a payment option of some renowned institutions and still has the potential to become a backbone of the future financial market.


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Author: John Kojo Kumi
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7% Of Bitcoin Supply Held In Cold Storage Vaults By One Company

Bitcoin storage provider Xapo now holds about 7% of the world’s total Bitcoin supply in its vaults, “roughly” amounting to $10 bln, Bloomberg reports May 9 quoting unnamed sources.

According to two clients, the wallet and cold storage provider currently looks after an estimated $10 bln in the cryptocurrency.

A further source “close to” the vaults, which now encompass five continents, called the figure an “accurate approximation.”

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Xapo has only been on the market since 2014, making headlines when it converted a Swiss bunker to a Bitcoin storage facility late last year. Prior to that, the startup had struggled to achieve validity during a move to the country from the US which proved troublesome with regulators.

Conversely, cryptocurrency funds now praise the storage concept, despite the arguable lack of complete control and more centralized setup it represents when compared to individual cold storage options such as hardware wallets.

“Everyone who isn’t keeping keys themselves is keeping them with Xapo,” UK-based investment platform CoinShares’ CEO Ryan Radloff told Bloomberg. “You couldn’t pay me to keep it with a bank.”

 


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author William Suberg 
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