We have all heard of Bitcoin (BTC), the world’s top performing asset of the decade and I can imagine the majority of you have the various Coins invested. However, the million dollar questions remain:
What does the future of Bitcoin look like?
How will it impact you as Investors?
Will the various “Bit” Coins only buffer our economy or shall Cryptocurrencies be the way of the future and replace traditional models?
What will our monetary system for the future look like?
“Cryptocurrencies are here to stay. Cryptocurrencies are going to displace roughly 25% of national currencies by 2030.” – Thomas Frey, Economic Futurist.
If we look at the concept of Gresham’s Law, which strongly proves that bad money drives good money out of circulation because people hoard good money, in this case Bitcoin, and use their bad money to buy goods. This is what is happening with fiat and Bitcoin presently.
Currently with the US/China trade war, the Yuan is bad money and Bitcoin is good money. Asia is heavily invested into Bitcoin who want out of the national currency model due to the continued fall in the Yuan.
“Migration continues from traditional models: Class, Bitcoin Making Progress to Replace Dollar.” – Morgan Stanley.
Currently, worldwide there is a demand for a non-intermediated, direct payment asset, and crypto, Bitcoin especially can serve that purpose.
Bitcoin is described as an Apex predator, with other currencies being decimated as Bitcoin gains further momentum. Ruchir Sharma, Morgan Stanley’s head of emerging markets, published a report titled “Why Crypto Is Coming Out of the Shadows” stating;
“Despite the jitters natural in a global pandemic, cryptocurrencies are rapidly gaining popular support as alternatives to gold (a store of value) and the dollar (as a means of payment).”
“We see fundamental reasons to believe that – regardless of where the price of bitcoin goes next – crypto currencies are here to stay as a serious asset class.”
Bitcoin is a decentralised currency that utilises peer-to-peer technology, which means that all of its functions including currency issuance, transaction processing and verification to be carried out collectively by the network.
These characteristics of Bitcoin are much different to how our fiat currency system works, which is backed and operated by the full faith and credit of its government. Hence what makes Bitcoin so appealing on a global scale.
Another major reckoning for its adoption is the falling of traditional currencies due to the saturation of our M1 money supply.
“Is the growing distrust in Fiat currencies, thanks to massive money printing by central banks.” – Sharma.
Our Lenders have a tendency to manipulate rates and print excessive amounts.
Bitcoin holds no leaders, meaning it is the most censorship resistant currency and it’s decentralised. These characteristics are very important to all within the space whilst having access to various key stores [Coins] of value that aren’t controlled by potentially oppressive governments and their institutions.
On a global scale Financial Institutions are now recognising the prominent gains and benefits of Bitcoin and its subsidiary coins hence the first and largest crypto currency as an asset that holds true value.
Through-out the commencement of 2021 we’re also witnessing the increase in popularity through the eyes of the public as well as a developing sense of curiosity for what the future holds for Bitcoin.
Financial Institutions including a number of leading providers in innovation and technology are too seeing the potential in Bitcoin and are already heavily invested.
The objectives behind such initiatives are to exercise the use of having a decentralised means of payment ensuring anonymity, whilst we observe scalability unfold.
Bitcoin, holds the potential for both “Freedom and Choice”
Currently the market cap for Bitcoin is pushing $1 Trillion, making it the World’s 5th largest currency.
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