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Present-day cryptocurrencies cannot replace the current financial system, says Kaspersky

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Present-day cryptocurrencies cannot replace the current financial system, says Kaspersky
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Eugene Kaspersky joined the list of major personalities with opinions on Bitcoin after he said that the coin was ‘great,’ but its mainstream adoption by replacing traditional financial institutions was likely to take a century and that the world was not ready to embrace them yet.

In a recent interview with the Dubai-based media house, Arabian Business, the Russian cybersecurity expert and the CEO of Kaspersky Lab, Eugene Kaspersky said that while cryptocurrencies will eventually disrupt the financial space, there has to be single governance across the world. He said,

“Cryptocurrencies are a great idea, but the world is not ready for them yet. The world must be united if we want to have encrypted currencies. At the moment, governments will want to control them.”

The CEO maintained that the digital currencies will be successful only if governments quit trying to control them. He further asserted that the current financial system can leverage the blockchain technology to bring about modifications.

The multinational cybersecurity and antivirus platform is presently entangled in allegations of developing spy tools for the Russian intelligence agency. Kaspersky dismissed all such claims, calling them ‘fake.’

Kaspersky believes that countries will try to ‘forbid’ crypto usage because of their decentralized nature since the people in power like to take control of money. However, he warned, these digital assets will be outrightly banned the moment they try to oust fiat and traditional paper money.

While many major industry entities have asserted that crypto assets, and Bitcoin, in particular, have the potential to take over the world, a few players have been skeptical about its scalability and the whether or not it can supersede traditional paper currency.

A network that spans worldwide, Bitcoin’s adoption has undeniably soared over the past couple of years. As charted by Blockchain.com, the number of confirmed Bitcoin transactions per day has also thrived.

Source: Blockchain.com

The adoption continues to grow even as Bitcoin and other crypto assets are going through a bear market. According to the online stats portal, Statista, the numbers of blockchain wallet users has also significantly increased.

Source: Statista





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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.

Bitcoin

Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021

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Bitcoin [BTC] will likely reach $100,000 with a market cap of over $2 trillion before the end of 2021
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The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.

According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.

Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,

“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”

Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,

“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”

Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,

“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”





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