Will bitcoin survive? Is it safe to use? Will it replace fiat currencies in the future? These are some of the most common questions that are floating around regarding bitcoin. It has only been just over 10 years for this asset and because it is so new, there is a lack of concrete regulatory frameworks relating to this asset. Uncertainty looms over the crypto space.
Dr. Mark Thornton, an economist and senior fellow at the Mises Institute recently got in touch with BlockPublisher as he answered these questions. Following are the views presented forward by Mark.
- What is the future of Bitcoin?
Mark: “As a market leader, Bitcoin would appear to have a bright future. My guess is that it has entered a new era of relative stability. It has many new competitors so it is likely to lose market share to crypto-currencies that have technical and marketing advantages.”
- Will it replace fiat in the future?
Mark: “Crypto-currencies continue to gain market share and this should be increasingly true in areas with failing fiat currencies like in Venezuela. It is going to be interesting to see if cryptos gain an added advantage in countries that adopt strong zero cash policies.”
- Is it safe to use?
Mark: “Bitcoin is safe to use. It is volatility of price that is the big concern in the present market. In the longer term, we still do not know how governments and central banks will act if Bitcoin becomes a significant player in the market hurting their fiat currencies.”
The issue of volatility is one of the major ones floating around in the crypto arena right now. Prices spike up and fall down significantly in a matter of hours. Owing to these major price fluctuations, the image of cryptocurrencies in the mainstream media has become largely negative. People hold back from entering this space using cryptos as a source of making payments owing to this issue.
The regulatory body in charge of approving a bitcoin exchange-traded fund (ETF), the United States Securities And Exchange Commission, has also not approved it as of yet owing to the issues associated with bitcoin, with one of them being the volatility. If bitcoin is to gain mainstream adoption across the globe and become a global digital currency, issues like volatility, manipulation, illegal activities etc. need to be resolved as soon as possible. The prospects provided by cryptos do seem revolutionary if the negative aspects linked to them are removed. It will be exciting to see how things proceed for the asset as we move forward.