Will Bitcoin Replace Fiat Money In 20 Years?
Bitcoin’s (BTC) current dip has failed to upset loyal believers in untethered, freedom of finance. That’s right, Bitcoin has been “half-off” for quite some time now at just around $30,000 but no one is really too worried about it, In fact, many crypto fanatics are buying up Bitcoin and HODLing, encouraging others to do the same as well.
But why, even though there is so much negative press, so many larger forces trying to outlaw Bitcoin and the likes, why are folks still on board?
Well, just to be sure, this wasn’t a hoax, we peeped the data from a new survey by personal finance comparison platform Finder.com. Looks like it’s true! People really believe that Bitcoin will outlast fiat!
In fact, the surveys found that half of the participants believe Bitcoin will surpass fiat currency, AKA central bank-issued, government-controlled currencies, by the year 2040.
So, the group of participants was relatively narrow which should most certainly be considered, but the good news is, those surveyed were well-versed and well-known experts in the cryptocurrency community. (42 of them to be exact) Even after Bitcoin’s crashing majorly in April, crypto professionals still believe!
Did Someone Say Hyperbitcoinization?
Well, Yes! So glad you asked. According to the data collected by this FInder.com survey, 50% of respondents expect to see what they call “hyperbitcoinization” within their lifetime, more particularly, in the next 20 years.
One-third of those surveyed believe the great “hyperbitcoinization” event will occur before the year 2035. Another 44% predict that Bitcoin doesn’t have a chance, and will never become the world currency go-to.
Since El Salvador joined the movement, recognizing Bitcoin as legal tender, other developing nations might be falling in line. Of the experts surveyed, 33% suggested that Bitcoin would come the primary currency in developing countries within the next 10 years, 21% of experts surveyed believe it will happen over time, taking longer than 10 years.
One thing is for sure, if Bitcoin is to be the global currency, environmental concerns must be a priority. Just like Bitcoin mining the traditional fiat system consumes a crazy amount of energy as well, yet it becomes very cloudy when trying to quantify the amount of electricity and other natural resources used across the many different ways traditional currency can be handled.
This fact does not change the potential for an outrageous carbon footprint on the behalf of Bitcoin mining, yet it does even the playing field a bit. 93% of the experts involved in this crypto survey agreed that the great energy debate could be the demise of Bitcoin if not handled appropriately.
The flip side to this argument is that Bitcoin “going green” has been in effect! To counter the detrimental effects of high-energy use, many Bitcoin mining operations have set up shop in these jurisdictions where excess energy, normally unused, can fulfill its purpose, offering some balance. Others are set up to run entirely off of natural energy resources, such as water or wind.
That being said, data reports that more than 50% of the experts don’t think moving to an environmentally friendly Proof-of-Stake model is the answer. 66% of respondents called the proof-of-work model a “necessary evil.”, despite the affect such changes could have on the price.
Expert Dan Held revealed in an interview that
Bitcoin has a good chance of becoming the world’s reserve currency, but it will take at least 10 years.
He went on to add;
In developing countries, Bitcoin is mainly valuable for avoiding censorship — while in the Western world, Bitcoin is attractive as a hedge against central banks’ money-printing
Do you think that Bitcoin will rise to the top of global currencies, replacing fiat? Comment below, we would love to know!