Thomas Frey, who is a speaker at Futurist recently stated that the future of money will be entirely decentralized. This will mean that cryptocurrencies are here to stay. According to him, cryptocurrencies will overtake at least 25% of the Fiat currency by the year 2030.
According to him, cryptocurrencies are much more efficient as compared to the Fiat currencies. This is one of the main reasons why they will overtake the Fiat currencies.
According to him, cryptocurrencies like Bitcoin hold a lot of value. Even though they might not be available as a payment option with the retailers yet but in the future, businesses will not be able to ignore cryptocurrency. He also thinks that cryptocurrencies like Bitcoin hold the power to disrupt the traditional banking industry. The reason for this is that the traditional banking systems are not at all efficient.
He is also of the opinion that Bitcoin transactions are similar to real estate deals. This is starkly similar with the way in which IRS is taxing Bitcoin’s as well as cryptocurrency investments. IRS also thinks that Bitcoin is like a property.
He further adds that cryptocurrencies can emerge as an asset class in the future. This clearly means that they will be able to provide a significant return to the holders. Also, any legalization of the cryptocurrency will certainly attract more and more investors as well. Also, according to him, cryptocurrencies will gain a lot of momentum in the global economy.
He further adds that the rise and fall in cryptocurrencies will be cyclical in nature. There will be bearish phases when cryptocurrencies will not perform for a pretty long period of time. The investors who are able to hold through these bearish phases, will be able to earn greater returns during the bullish phases as well. The rise will not be linear.
It remains to be seen whether cryptocurrencies really emerge as a threat to the traditional banking system. For now, however, it seems like more and more investors are looking to hold the cryptocurrency for a longer period of time. The recent rise from the bottom in the cryptocurrencies is also giving a positive cue to most of the investors of cryptocurrencies.
With that being said, the volatility in cryptocurrency is also enormous.