While individuals like Mark Carney – a Canadian economist who serves as Governor of the Bank of England and Chairman of the G20’s Financial Stability Board – claim that Bitcoin and other cryptocurrencies have “failed” and thus pose no threat to traditional financial institutions, others less invested in the status quo aren’t so sure. If you ask some futurists, cryptocurrencies are set to replace traditional currencies in only a matter of decades.
‘They’re Just More Efficient’
Are Bitcoin and cryptocurrency doomed to fail? Futurists certainly don’t think so.
According to futurist and author Thomas Frey, cryptocurrency isn’t going anywhere. Rather, it is only going to grow in importance as time goes on. Frey told MONEY:
Cryptocurrency is very much here to stay … cryptocurrencies are going to displace roughly 25% of national currencies by 2030. They’re just much more efficient, the way they run.
Dr. James Canton from the Institute for Global Futures agrees, suggesting those that make the right decisions early will reap the rewards:
[We’re seeing] the legitimization of a new asset class emerging alongside the traditional global economy … I’d say you can expect an exponential increase of new investment vehicles to come from cryptofinance.
Volatility is to be Expected
Canton also cautions investors against buying into the FUD (Fear, Uncertainty, and Doubt) perpetuating ideas that Bitcoin and cryptocurrencies are a bubble about to burst. Rather, he views the volatile ups and downs that come with cryptocurrency as part of a natural investment cycle:
I see crypto investments similarly to how I see traditional investments in stocks and bonds, which go through cycles … there is more volatility in cryptocurrencies, [but] it’s a worthy area for people to experiment with their investment portfolios really carefully.
Central banks should be scared
While individuals like Mark Carney feign security in the face of clearly-disruptive digital currencies, others are fully aware of cryptocurrency’s ability to undermine central banks.
The World Gold Council has already gone on record to state that Bitcoin will potentially undermine central banks, as has the International Monetary Fund — which Frey thinks is important. He explained to MONEY:
When people like [International Monetary Fund managing director] Christine Lagarde say cryptocurrencies could displace central banks and international banking, that’s very significant.
Canton backs up that sentiment, explaining that the future of commerce is clearly on the blockchain. He said:
The future of commerce will be shaped by the crypto supply chain, which will have less friction and more exponential value between buyers and sellers of all products.
Ultimately, it doesn’t take a Futurist to know that cryptocurrency has a place in the future.
Do you think cryptocurrency will replace fiat currencies in the future? Should central banks be scared? Let us know in the comments below!
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