Bitcoin will replace fiat currency by 2050 in a state of “hyperbitcoinization,” the moment in which Bitcoin will overtake global finance is being anticipated, as per the report by Finder.com, a personal finance comparison site. In fact, recently a similar tone was resounded by MicroStrategy CEO, Michael Saylor when he said “Bitcoin is the kingmaker.”
An increasing number of investors, both institutional and retail, across the globe are looking at Bitcoin as a hedge against rising prices. However, Saylor had a different piece of advice for the countries battling an economic crisis. He opined,
“Turkey could go and buy $5 billion worth of Bitcoin in their central bank treasury and then that will be worth $50 billion over the next five years. It could strengthen their currency and 50 million people in Turkey would in essence have a Turkish Lira which will be a derivative of Bitcoin.”
What’s more, well JP Morgan Chase also sounded bullish when it mentioned in a note that institutional investors consider Bitcoin a better inflationary hedge than gold. It seems that Saylor is harping on the point that governments need Bitcoin.
“Issue currency backed by Bitcoin”
As the first BTC Futures ETF in the US is set to begin trading, Saylor asserted that countries can blindly benefit from Bitcoin. He said,
“We don’t need to scale on the base layer. You want to fix your country like Nigeria or Zimbabwe. The way you fix your country is you buy $2 billion or $3 billion worth of BTC and you issue currency backed by the Bitcoin. That is the Bitcoin standard. And every one of your citizens stop starving to death and they live a decent life.”
Recently, Zimbabwe’s finance minister, Mthuli Ncube, stated that it was now impossible to run away from cryptocurrencies. Besides, he commended the potential of lowering remittance fees via decentralized finance (DeFi).
On the other hand, Nigeria is a country that homes one of the largest groups of crypto-traders in the world. And last month it established a dedicated fintech division to study crypto and blockchain investment products.
I visited the DMCC CRYPTO CENTRE in Dubai, which is a fascinating incubation hub for crypto currency and payment solutions. Came across solutions that could lower charges for diaspora remittances. pic.twitter.com/krhW8EJHLE
— Prof. Mthuli Ncube (@MthuliNcube) September 9, 2021
However, not all the voices are going gaga over Bitcoin. Earlier this month, International Monetary Fund warned of global risks from the unregulated cryptocurrency boom. It stated that tougher regulations were needed to prevent the rapid growth in cryptocurrencies leading to financial instability, defrauding of consumers, and funding of terrorism.
In addition to that, some titans of the traditional financial system have been mentioning that Bitcoin is a fad and have also been equating Bitcoin with the tulip mania bubble of the 17th century. Interestingly, it remains to be seen if Bitcoin If the recent Bitcoin adoption in El Salvador is to be considered, it will indeed ne interesting to watch what direction Bitcoin’s journey will take in the future, and whether it really does replace fiat currency.