The world’s most traded cryptocurrency will overtake central bank currencies as the dominant form of the financial sector worldwide in less than 30 years, a panel of fintech professionals has confirmed.
Fifty-four percent of 42 crypto experts surveyed predict that so-called hyperbitcoinization — or the moment when bitcoin dominates global finance — will happen by 2050, according to a report released Friday from Finder.com, a finance comparison site. profile.
According to 29% of respondents, this could happen sooner, by 2035.
This prediction comes at a time when interest in the cryptocurrency market is growing among institutional and individual investors, while the majority of central banks are considering creating their own digital currencies, from research to pilot programs.
Thomson Reuters technologist and futurist Joseph Raczynski believes that some countries “will benefit from Bitcoin as a base currency with stable circulation and ease of money transfer, and it will be beneficial for them to move to a non-banking model that is inherent in this system,” Thomson Reuters reports. environmental”. Bitcoin is expected to surpass fiat currencies by 2025, when its price will reach $150,000.
El Salvador has become the first country to adopt bitcoin as a legal currency, and it will officially start using it in September after lawmakers approved the decision in June.
Fifty-five percent of the panel of experts believe that Bitcoin will become the currency of choice in developing countries, as Venezuelans are using cryptocurrency as a way to beat the country’s hyperinflation.
But 44% of 41 respondents to the survey do not believe that an over-trading of cryptocurrencies will happen. Among them is Lee Smalles, associate professor at the University of Western Australia.
“Ultimately, I think Bitcoin (and many other crypto assets) will lose out to central bank digital currencies as many of them will be operational by the end of the decade,” Smalls said.
Federal Reserve Chairman Jerome Powell told US lawmakers this week that cryptocurrencies have failed to become a viable means of payment, and that the official digital currency of the United States could undermine the need for cryptocurrencies.
Powell said a research paper on whether the Fed should create a digital currency is likely to be published in September.
And 86% of central banks are exploring the advantages and disadvantages of what is known as CBDC, or central bank digital currencies, according to a 2020 survey by the Bank for International Settlements.
Looking at the price of Bitcoin in 2021, 61% of experts in a Finder.com survey said the price of the most popular cryptocurrency was undervalued. On average, the committee expects the price of Bitcoin to rise to $66,000 by the end of the year.
On Friday, Bitcoin was trading at less than $32,000, and was on track for its worst weekly performance in more than a month.
Cryptocurrency prices continued to decline on Monday, with Bitcoin dropping more than 2% to $31,590. The world’s largest cryptocurrency has been stuck in a range of about $30,000 to $40,000 for months after hitting an all-time high near $65,000 in mid-April.