By Tony Winterburn • 05 March 2021 • 7:45
Bitcoin Could Replace ALL Global Currencies At Price Target Of $1 MILLION Within Decade. image: Pexels
Bitcoin Could Replace ALL Global Currencies At Price Target Of $1 MILLION Within Decade.
As national currencies are already showing extreme signs of weakness, people will soon start measuring the price of things in terms of bitcoin, says Jesse Powell, CEO of cryptocurrency trading exchange Kraken.
He told Bloomberg on Thursday that bitcoin will eventually be a global currency because “you have to think it’s going to infinity.”
“I think true believers will tell you it’s going all the way to the moon, to Mars, and eventually it’ll be the world’s currency,” Powell added.
According to Powell, “In the near term, people see it (bitcoin) surpassing gold as a store of value, so I think a million dollars as a price target within the next 10 years is very reasonable.” Bitcoin believers expect the cryptocurrency to replace fiat money and the market capitalization of all national currencies combined could make up its worth, he said.
What are the advantages of Bitcoin over existing currencies?
According to its supporters, Bitcoin has two advantages over existing currencies. The first is that its supply is limited, making it impossible for a central authority to issue it in quantities that would devalue it.
This means it is much less vulnerable to hyperinflation crises, such as those seen in Weimar Germany, Zimbabwe or Venezuela. But a limited supply can also be a weakness, as it makes it impossible to control deflation – a phenomenon that can also lead to very severe economic consequences.
The second claimed advantage of Bitcoin is that all transactions are permanent and immutable. When money is held in a bank account, that bank could theoretically expropriate the money from its user and claim that it never existed.
With Bitcoin, this is impossible, because the database on which transactions are recorded cannot be edited by any central authority. Bitcoin is thus often described as ‘trustless’, because it does not require its holder to trust a financial institution not to expropriate it
The price of bitcoin dropped almost four per cent to $49,596 (€41,480) as of 13:50 GMT on Thursday. However, the world’s most popular cryptocurrency is up 70 per cent year-to-date. Bitcoin slid after the nominee for chairman of the US Securities and Exchange Commission Gary Gensler said making sure that cryptocurrency markets are free of fraud and manipulation is a challenge for the agency. Gensler has been viewed as a strong advocate for digital assets.
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