The price of bitcoin could rise exponentially if its adoption becomes massive.
Bitcoin could undercut the US dollar, euro, and Japanese yen as a store of value.
Different economic specialists invited to the Bitcoin 2022 convention explained why the main cryptocurrency in the market could become a universal value reserve asset in the coming years. In this way, fiat currencies such as the US dollar, the euro and the Japanese yen would take a backseat.
Fred Thiel, the CEO of Marathon Digital Holdings, said what do you think bitcoin (BTC) is already one of the reserve currencies because it is not controlled by anyone. In this age of less confidence, it functions as an “ideal” value asset. While its use may be prohibited, no one can kill it, he said.
“We will soon see countries using BTC as a reserve asset,” he said, warning that this will have an interesting impact. He estimated that bitcoin will become much bigger than it is and adoption will continue to show up in all aspects of commerce.
Avik Roy, the president of FREOPP, an NGO that expands economic opportunities, stressed that the medium of exchange is not what is important, but what really matters is the store of value. Neither the dollar, nor the euro, nor the yen are a store of valueHe stated clarifying that his wealth has been reduced. This is due to inflation, even when it has been low, and the Central Banks’ policy of printing banknotes. This suggests a new economic world order.
The euro, the dollar and the yen have a problem that bitcoin does not, nobody controls it
“The whole fiat currency system is the problem,” he summarized. The specialist commented that what we are seeing now is that during the last 15 years the proportion of Treasury bonds from foreign governments and foreign investors has decreased. This while the participation of the United States Federal Reserve has increased.
Therefore, he considers that it would not be surprising that in 10 years these curves cross and the United States Federal Reserve has become a major holder of Treasury bonds, manipulating and controlling the market. Roy commented that that is the Latin American monetary policy, which is clearly not sustainableso it’s really dangerous.
In this stage, bitcoin could transcend the dollarRoy argued. But he anticipates that it will be a challenging time period with enormous economic and social dislocation.
Bitcoin as a store of value changes the monetary system as we know it
Matthew Pines, who is a member of the Bitcoin Policy think tank, added to this that BTC is a new neutral global reserve asset. That is to say, it is not under the control of any particular power, but directed by the individual citizens themselves. This is driving the biggest economic engine of innovation, which is changing the world.
Besides, Pines noted that bitcoin as a store of value is aligned with the values of the United States because it counteracts its adversaries. Therefore, he believes that its use should be encouraged. He said this in reference to the fact that, for years, China, promoted by Russia and other countries with related policies, has been trying to make its currency the one used to exchange oil.
As CriptoNoticias explained, this situation would make countries have to keep reserves in their currency to buy oil, which would devalue the dollar as a universal asset and change the monetary system. On this, the researcher Lyn Alden clarified that in the end it all comes down to understanding what the properties of good money are and BTC is shown as a viable option.
Alden stressed that bitcoin it can become what gold could not and the big capital groups will realize that when they see that it is worth several hundred billion. When that happens, you don’t see why it wouldn’t be an important part of a number of countries’ reserve assets, as well as organizations and individuals.
In this way, the more people buy BTC and use it, the more its price would rise and it will become a universal trust asset to store savings. In conclusion, the researcher estimated that within five years the whole world will be seeing bitcoin as a store of value.