The prices of Bitcoin, ETH and XRP will continue to rise for a long period. Investors and traders will be able to make and lose huge amounts of money by betting on these cryptocurrencies. Analysts realize that these cryptocurrencies will die by themselves or be destroyed by the “regime”, which is the global governments and large banks protecting sovereign currencies.
Consider Bitcoin as an example.
The “Currency for the people” holds great promise. It will be the first world currency that is truly free from the control and influence of central banks printing money and large banks creating faith. Bitcoin must be trusted by the general public to achieve this goal.
It must be used as a currency, a way to exchange money (people can use bitcoin to purchase services), an accounting unit, and a way to protect value by replacing national currencies. It is difficult because of the many hurdles that Bitcoin faces. This includes lack of information, familiarity, stability, and others. Experts are pessimistic about Bitcoin’s future.
Lars Seier Christensen is president of Concordium, the next generation decentralised computer.
Christensen says, “In the long term, I am pessimistic regarding Bitcoin because I believe it doesn’t have the necessary characteristics to be a more valuable asset over the long-term. In the end, the reality will reach it.” “But, in the short-term, price movements will likely be random because Bitcoin’s liquidity and larger transactions are unpredictable.”
Bitcoin’s unpredictability makes it difficult to make Bitcoin a widely accepted means of exchanging. Bitcoin, without widespread adoption, will be a game for speculators as well as real fans who will eventually perish.
What happens next if Bitcoin is successful in overcoming all obstacles and becomes widely accepted by the public?
Pessimists argue that the “regime cannot afford” to allow that to happen.
There are many reasons, including “Seigniorage”. Simply put, it is the income that national governments get from money printing. There is also the profit that banks make by creating credit and circulating this money.
This scheme will protect the profits from Bitcoin and any other cryptocurrency that may seek to replace them.
Recent hearings in Congress on Libra have confirmed the regime’s resolve to protect the dollar against competing cryptocurrencies. The rare moment of unity between Democrats and Republicans in Libra was a sign that they were not opposed to the legislation and had few positive words to say about Bitcoin.
Christensen says that cryptocurrencies which exist only as currency substitutes don’t have a long-term future. They will be banning by governments that want to limit money supply and taxation. In any case, cryptocurrencies do not have any intrinsic long-term worth. Bitcoin will therefore only survive as an marginal activity.
This grim assessment is not shared by everyone. Dave Hodgson is director and cofounder of NEM Ventures.
Hodgson states that despite the efforts of some, Bitcoin will not be destroyed or killed by the regime. “The Bitcoin’s recent decline is within the bounds of what technical analysis predicted.” The timetable was slightly altered by recent announcements, particularly by US government representatives.
Corentin Denoeud is the CEO and cofounder of Blockchain Studio.
Denoeud says that the fact that governments all over the globe talk about Cryptocurrencies is a sign for progress in the industry. While countries such as India called for a ban of digital currencies, representatives of Germany’s Central Bank have responded positively and are supporting the view that cryptocurrencies don’t pose a threat the global monetary stability. China, which has previously banned ICOs, and traded cryptocurrencies, called Bitcoin the “Safe Investment Shelter” (through the state media organization) and is now reportedly intensifying its efforts to set up her own cryptocurrency.
Although it’s not clear which side is correct, there is one thing that is certain: Bitcoin’s true believers (along with the ETH, XRP and LTC) are the ones who will be the winners. People who believe that cryptocurrency will eventually replace national currencies need to learn about money and banking.