The value of something across the world is maintained as long as there are people who believe that particular thing carries value. The same case seems to be with bitcoin (BTC). As of now, bitcoin is considered as a global digital currency by some and as per some, it is the digital gold. On the other end, its opponents refuse to accept this asset overall.
It has been over a decade since bitcoin erupted out on the global scene and owing to the lack of regulations from the beginning, a lot of negative elements have seeped into this world. Now, with more and more institutional and organizational interest being developed, the demands for regulations and official frameworks are growing. So should this market be regulated keeping in mind that the main idea presented forward by decentralization eliminates any intervention of a third-party?
BlockPublisher recently got in touch with the Co-Founder and Chief Scientist of CyberMiles, Michael Yuan, as he expressed his opinions regarding the world of bitcoin. Here’s the Q&A with Michael that puts forward the opinions expressed by him.
- Will bitcoin replace fiat or act as a reserve currency in the future?
Michael: “It’s only a matter of time as much of the developing world lacks the financial infrastructure that many of us enjoy today. This means that traditional payment methods, such as fiat currency or even barter, exist to a large degree and are highly localized. However, mobile technology is already widely available, with the rise of digital wallets, micro lending, online banking, etc. giving us a glimpse of what mainstream cryptocurrency could have in store.”
- Is it the digital gold?
Michael: “In a sense. Bitcoin is a store of value much like gold or diamonds. In fact, the value of BTC is not its underlying utility, but how much people believe in it.”
- Should this market be regulated?
Michael: “For the price of Bitcoin, the threat is a collapse in societal consensus — precisely why it currently isn’t a viable currency. We believe that regulated security tokens could be the way forward. It works in the current securities regulation framework, but allows us to securitize new asset classes and more importantly, remove humans from the process — code, rather humans will do the securitization.”
- What can governments do to curb out the negative elements linked with bitcoin?
Michael: “The lack of crypto regulations, from country to country, may be contributing to the volatility within the market. Stable coins, however, have the potential to change that. Tethered to fiat currency (vs. volatile crypto markets), stable coins could enable cross-border transactions — village to village, region to region, country to country — to occur with little to no interference, in more transparent, efficient and cost-effective ways.”
It is being suggested by many experts in the game that the regulations will help curb out the illegal activities linked with this space and will help enable a general layer of trust regarding this space among the people. As we move forward into 2019, it will be interesting to see how things turn out in this space regarding legislation and regulation.