Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Nearly 50% of respondents in the survey expect Bitcoin to overtake global finance by 2040, calling it hyperbitcoinization. It will be interesting to see whether if Bitcoin can overtake the traditional financial market in the next two decades.
The world’s largest cryptocurrency Bitcoin (BTC) has been constantly trading under pressure. Over the last week, BTC has lost 8% falling under its crucial support levels of $33,000. At press time, Bitcoin is trading at $31,321 with a market cap of $587 billion. Despite over 50% in the last three months, investors’ confidence in Bitcoin hasn’t deterred. Personal finance comparison platform Finder.com conducted a recent survey where more than 50% of the responders said that Bitcoin will surpass fiat money by the next two decades.
This even means that BTC will overwhelm central bank digital currencies (CBDCs) by 2040. The report clearly contradicts Fed Chairman’s recent comment wherein he stated that we won’t need digital currencies once we have the Digital Dollar. Addressing the US House of Representatives Financial Services Committee last week, Jerome Powell said:
“I think that may be the case and I think that’s one of the arguments that are offered in favor of digital currency. That, in particular, you wouldn’t need stablecoins, you wouldn’t need cryptocurrencies if you had a digital US currency – I think that’s one of the stronger arguments in its favor.”
The report shows investors’ still don’t trust the central bank-backed digital currencies. But to note, the report’s sample size is quite narrow. The report shows the view of 42 cryptocurrency experts. These experts are positive for Bitcoin’s long-term future.
Bitcoin Will Overtake Fiat and Global Finance in General
The report shows that over 50% of respondents expect Bitcoin to overtake global finance by 2040, calling it hyperbitcoinization. One-third of the respondents believe this event to happen even earlier by 2035. On the other hand, 44% believe that Bitcoin will never become the dominant force in global finance.
Besides, one-third of the respondents also said that Bitcoin will become the most common form of cryptocurrency in the next 10 years. The latest move from El Salvador clearly hints towards the same. The Latin American became the first in the world to make Bitcoin a legal tender. By passing its Bitcoin Law, El Salvador also makes Bitcoin a legal tender along with the existing USD.
One major roadblock to Bitcoin’s mass adoption is the environmental concern surrounding it. China issued a sweeping ban on the bitcoin miners operating in the country citing a high use of coal power. A lot of miners have thus moved base to overseas locations in Europe and North America.
At the same time, the industry has initiated several measures aimed at moving towards green energy solutions for Bitcoin. Top miners from North America have joined hands to form the Bitcoin Mining Council which looks after adopting green energy solutions.