With a market cap increase of 108% since the beginning of 2019, bitcoin has been steering the crypto market, so much so that some well-known economists of the world have started to acknowledge its potential. Recently, Andrew G Haldane, the chief economist of the Bank of England took a U-turn and acknowledged the immense potential of bitcoin to revolutionize the current financial system by replacing fiat.
While delivering a speech at a college, he shared his bullish thoughts on bitcoin and other cryptocurrencies. He responded to a query regarding cryptocurrency and explained that the process might be gradual and time-consuming but ultimately, there will be a time when bitcoin will be dominant and superior over fiat. Narrated by an attendee at the college;
He (Haldane) said it (bitcoin) could replace cash, he even joked about us likely having Bitcoin in our wallets. He said he didn’t think it’d replace cash tomorrow, but he was quite open to the idea 20 or 30 years down the line. He was also quite familiar with cryptocurrencies and joked that there were now thousands of them.
Last year, Haldane showed severe opposition to bitcoin, he kept advising investors to safeguard themselves from bitcoin and other cryptocurrencies by avoiding them. Moreover, after warning investors, he continued bashing bitcoin by outlining its flaws. He suggested that bitcoin, representing less than 1% of global wealth wasn’t scalable nor it posed any threat to the banking and financial systems. It is surprising to witness that while bitcoin still represents less than 1% of global wealth and has scalability issue i.e can’t handle more than 7 transactions per second, we observe a complete change in Haldane’s point of view regarding bitcoin.
Bitcoin has been showing prospects to its adversaries for quite some time now and Haldane isn’t the only one convinced by bitcoin so far. A similar change of course was also experienced by Niall Ferguson, a renowned economic historian, who while attending a summit, confessed that he had been wrong with his anti crypto stance in the past. After joining a crypto blockchain startup, Krugman Angry, and later the blockchain project, Ampleforth, Ferguson marked the end of his staunch blockchain opposition and stated instead:
I’m attracted by Ampleforth’s mission to reinvent money in a way that protects individual freedom and to create a payments system that treats everyone equally.
Utility and ease provided by bitcoin and acknowledged by many, makes it an extremely preferred medium for transferring of funds. To explore the extent to which bitcoin has revolutionized the day to day events, BlockPublisher reached out to the experts in the space and found Nash Foster, CEO of Pyrofex, very well-suited. Upon enquiring reasons for mass adoption, Foster, in simple words, enlightened:
Users are adopting cryptocurrencies like Bitcoin because it’s so empowering. You can send $100 of Bitcoin to your friend across the dinner table for a few cents. The same transaction costs something like $3-$5 on the Visa network…… If you want to send a wire over the Swift network, it’s $35. But, I sent $10,000 in BTC to a developer recently and the fee was $0.09. The transaction cleared in twenty minutes and I didn’t have to go through all this rigmarole with my bank to make it happen.
Digging further to explore the use cases of bitcoin that revolutionized lives of people, CEO of The Tesseract, Dr. Stylianos Kampakis, who is a data scientist and blockchain expert, was approached by BlockPublisher. Like Foster, Kampakis confirmed that bitcoin provided a better alternative to the banking system and fiat and said:
BTC has two good use cases. It can be a store of value, and it can be a way to transact money internationally, without having to worry about bank fees, or late payments because of bank holidays. We saw last year the price of BTC reaching a high, because of a speculative bubble, but this doesn’t affect the main use case which is the international transfer of money.
By looking at perspectives of different experts of the crypto and financial industry, it is evident that bitcoin is capable of replacing fiat and disrupting current banking system. It must be taken into account that banking and other financial institutions under its threat, aren’t willing to give an easy way to mass bitcoin adoption. Foster articulated the disruption brought by bitcoin to the banking system while sharing his thoughts with BlockPublisher. He explained how banks were putting a fight by covering their true intentions behind several excuses. He elaborated:
Bitcoin is disruptive because banks are greedy and they charge way too much for the extremely limited value they provide. In the West, banks have been shielded from technological disruption by completely insane regulations that stifle any outsider’s attempt to compete. In New York, if you want to start a bank, the law actually requires you to hire a banking insider as a senior executive. You can’t get your license otherwise….. Banks have become really adept at telling technology people, no, we can’t do that.
More people are expanding the space by advocating for bitcoin, the threat to banks is increasing every day. With the most resistant ones such as Hanldane and Fergusan abolishing their despairing believes regarding bitcoin and underlying technology blockchain, the wave of mass adoption is getting stronger. As it strengthens up, the chances of inclusion of most stringent crypto and blockchain antagonists in the space increases. In the future, we can hope that the wave can capitalize the influentials such as Warren Buffet, who bitterly oppose bitcoin at the moment, and change the dynamics of the crypto world.