Ever since bitcoin first came to the fore nearly a decade ago, futurists have been fascinated as to what the future may look like if cryptocurrencies are adopted on a mass scale.
Convincing a New Generation of Investor
For the general public, they may not have much of a grasp as to the many benefits and pitfalls associated with cryptocurrencies. Without following particular sources, a typical audience is primarily getting their information from mainstream media platforms seemingly hellbent on making connections with criminals.
However, times are changing, and more and more of the general public are starting to learn about what digital currencies have to offer. As such, they are beginning to get on board with the idea in a big way.
Falling down the Bitcoin rabbit hole is dangerous business. Some folks take a wrong turn & get lost. Best you can do is throw them a rope.
— Jameson Lopp (@lopp) August 22, 2017
Despite the skeptics in the traditional world of finance, it seems that digital currencies are here to stay and are only going to get bigger.
Two top futurists specializing in forecasts for future technology trends have spoken out on digital currencies and why the world needs to pay close attention.
National Currencies Will Be Replaced by 2030
Thomas Frey believes that cryptocurrency is here for the long-term and that he will be speaking about this issue with the Federal Reserve in September 2018.
Frey believes that by 2030, approximately 25 percent of the world’s national currencies will be replaced by cryptocurrencies as they are significantly more efficient than the current fiat currency systems.
The other futurist is Dr. James Canton from the Institute for Global Futures. Canton posits that the evolution of cryptocurrencies in recent years as the “legitimization of a new asset class” that has a role alongside the traditional worldwide economy.
As time goes on, he believes crypto finance will generate exponential increases in the levels of investment for both startups and established companies. Naturally, there will be losses incurred by the crypto markets too, but there is also massive potential to accumulate vast amounts of wealth.
Different Hare to Chase
Digital tokens do not have any of the limitations that are applied to fiat currencies linked to nations or regions. As a result, the United States Internal Revenue Service (IRS) classifies digital currencies as being property as opposed to being an actual currency.
When bitcoin is sent to another person, in the eyes of the IRS, this is like selling real estate and changing the property ownership to the buyer. This style of exchange is why the likes of bitcoin won’t be used in supermarkets, as it is not yet treated as cash.
Canton believes that crypto-related investments are similar to the traditional stock market in that they are cyclical, just more volatile. He thinks they are a worthy part of any investment portfolio once the relevant research process is completed.
Replacing the Old Guard
Digital currencies are a significant disruption to the banking industry, and this is something banks are now realizing. Even the managing director of the International Monetary Fund (IMF) Christine Lagarde believes that digital currencies might replace international banking and central banks in the future.
Due to the absence of oversight and intermediaries, it is a more attractive option for investors as banking fees and financial adviser charges can be eliminated.
Canton is convinced that the world of commerce will change forever and it will be reshaped by the crypto supply chain. There will be more value and less friction seen between the sellers and buyers of goods and services, for instance.
Finally, Canon does believe there’s a role that governments can play with digital currencies, but excess regulation will only intrude and be counter-productive.