Everybody has their predictions or expectations about the future of cryptocurrency. It could be my wishful thinking, but these are my predictions.
♦PREDICTION 1: Crypto will NEVER replace fiat or traditional currency.
"Many agencies and regulators define money as anything that is a widely accepted means of exchange, a store of value, and a unit of account.”
Fiat meets these 3 requirements. Crypto does not. … NOT YET!!
HOWEVER: “Cryptocurrency has unlimited potential and is clearly beneficial as a currency.” Even though: “The International Monetary Fund (IMF) recommends against adopting cryptocurrency as a main national currency in its current state due to price volatility.”
Quote Reference: “Will Cryptocurrency Replace Fiat Currency?” Investopedia, 2023, www.investopedia.com/tech/bitcoin-or-altcoin-can-one-them-replace-fiat/. Accessed 11 May 2023.
OK! Crypto doesn't have to be the “main national currency”. But why can't it be accepted as a legal currency?
As long as there are people like Warren Buffet and Bill Gates who say crypto is a fad or fake money, and influence others, fiat will remain. By the same token, there are many influential people in the world of business and finance and other fields of endeavor who support the use of crypto. They have just as many people who listen to their advice as those who believe in Messieurs Buffet and Gates (if not more). I choose to believe that crypto, fiat, and gold will coexist and will be extremely important for a healthy economy. Even though at present there is a clear dividing line between these two opposing views, perhaps one day that line will be erased.
♦PREDICTION 2: Crypto will NEVER become obsolete.
Reputable respected entities such as NASDAQ have said that crypto is not likely to fade into extinction; but Bitcoin just might. For the record, Bitcoin's death has been predicted 400+ times. In April 2023, YAHOO Finance published a list of 7 Cryptos to Sell Before They Become Obsolete.
The game of Monopoly was patented in 1935. Do you know why everyone loved this game? Because of the money!! They could pretend they were wealthy. Crypto was first introduced to the world in 2009. Cryptocurrency is way better than Monopoly money because it's real and can be used in the real game of life! Some politicians are accepting their salary in crypto. Some people are buying real estate with crypto. As long as the average man or woman (like me) figures out "practical uses" for crypto, it's not going away! There are some articles published on this writing platform where users have said they used crypto for medical bills, healthcare, or charity. From my own personal experience, earning crypto helped me to pay off my debts.
There are plenty of reasons for the wealthy and the common ordinary people to NOT make crypto obsolete. In many countries, business entities and ordinary folks will do their best to RESIST government efforts to ban or abolish cryptocurrency. That's why some governments are trying to make crypto legal AND taxable. Why cut off a potential income or revenue source?
I live in the state of Texas USA and our governor has chosen to adopt a crypto-friendly approach. All US states should monitor the successes and failures of these efforts and then implement laws that work for their state. The federal government should take similar action so that the whole country is reading off of the same page. If USA can build crypto into its economic framework, why can't other countries? One final note: Even though there have been several crypto scams and scandals, people still are not willing to give up hope!
I think the idea of crypto becoming obsolete is unrealistic. But I guess people really like to do What If hypotheticals. Check out this article: What would happen if paper money became obsolete? Some people even wonder if paper money will go away. 😜
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DISCLAIMER: I am not a financial analyst or advisor. Please do not rely on my writing to make decisions regarding your finances. These are just my opinions and observations (and wishes). DYOR (Do Your Own Research) and DGU! (Don't give up!)
Thanks for reading.
I agree that crypto can never replace the fiat, but crypto will stay in demand for people.