A few years ago many of the biggest names in the investment world thought that Bitcoin and Co. was just a fad that would go away with the passing of time, however, recent events have proven that cryptocurrencies are not just here to stay but may replace fiat currency sooner than we think.
Coinbase Opens New Trading Products For Institutional Investors
Coinbase is the U.S.’s largest Bitcoin exchange, and therefore when they open their doors to big financial institutions you know that big money is finally taking cryptocurrencies seriously.
This week, Coinbase launched a host of investment products geared towards institutional investors saying that such tailor-made products had to be made available for big money as the rising demand from some of the heaviest hitters in the financial world was now reaching a tipping point.
Coinbase stated that at first Wall Street Banks were extremely reluctant to dip their toe into the cryptocurrency waters, but after huge moves by Goldman Sachs, launching its very-own U.S.D.-backed cryptocurrency, and JP Morgan declaring that they are seriously looking into digital currencies as a potential financial asset strategy, a number of big-hitters started seriously looking into the future of digital currencies.
Famous Venture Capitalist’s Bold Statement
Tim Draper, a venture capitalist and entrepreneur, has made accurate predictions about Bitcoin and other cryptocurrencies in the past.
For instance, in 2014, he predicted that Bitcoin would be worth $10,000 within three years and as we all know that number was far surpassed by the three-year mark.
So when Draper says things like cryptocurrencies will replace fiat currencies in the future, it is not just based on speculation but years of experience, empirical evidence and data, as well as that “gut-feeling” many successful entrepreneurs possess.
Draper believes that cryptocurrencies are just part of the next evolutionary economic and financial life-cycle. He feels that it is only a matter of time before the technology is available for people to safely and securely use their Bitcoin and other cryptocurrencies to purchase items and services as they currently do with their credit cards and cash.
In fact, it will be easier and faster to do so with blockchain technology than it is with the current fiat and debit/credit card systems in place today.
His estimation is that there is currently around $80 trillion of fiat currency in circulation across the globe and as cryptocurrencies continue to increase in popularity the number of fiat currency will drop from $80 trillion to $30 trillion and digital tokens will take up the slack.
According to Draper, it will take around 10-15 years until there is $100 trillion worth of cryptocurrency available around the globe, enough to validate its use in day-to-day transactions.
The Future Of Cryptocurrency
While the decentralized and transparent dream of cryptocurrency investing seems to be facing a huge obstacle at the moment, especially with the G20’s standard cryptocurrency regulations set to take place during July of this year, there is no denying that blockchain technology is the future of financial transactions across the globe.
Big money and big experts seem to agree on this and it is probably a smart move for the public at large – investors and consumers – to get used to digital transactions as easy as they did when they moved from paper to plastic not so long ago.