According to Jack Dorsey, a leading entrepreneur in Silicon Valley, Bitcoin will replace the dollar with regards to importance as it becomes the single global currency of the internet in ten years. This follows a move by drooling executives who have invested heavily in bitcoin and other cryptocurrency businesses.
In spite of the recent concerns regarding the price of bitcoin, and its transaction challenges, Mr Dorsey, the chief executive officer of Twitter and the payments company Square, is convinced that bitcoin will find a solution for these challenges and will be used in purchasing all items.
Bitcoin is the world’s most famous crypto and is best known for its blockchain technology. The coin only exists as strings of computer code in an absolute, distributed digital ledger. Started in 2009, the coin’s price skyrocketed to $20,000, turning some investors into instant billionaires. Consequently, other cryptocurrencies began emerging.
Most investors and evangelists have agreed that ingenious technology brought about by digital currencies may have far-reaching consequences on cyber security, which is currently one of the biggest challenges facing the global financial system. As such, achieving a cheaper, more secure payment system mechanism has supplanted Bitcoin’s ambition of replacing dollars.
Speaking of The Times, Mr Dorsey added that, “the world will ultimately use a single currency, including the internet”. He believes that it will be Bitcoin. As the cryptocurrency become more widely used in payments, it is up to payment processing firms such as square, to ensure that it is accepted in equal measure.
However, it is inevitable for central banks to create their digital currencies and use regulations to tilt the odds to their advantage because if Bitcoin will replace the dollar, this means they would go out of business. The long known history of currency informs us that what private sectors innovate, the governments appropriate and regulates. As such, there is no reason to expect a different fate for virtual currencies. But based on the benefits of Bitcoin and its blockchain technology, such regulations may work to its advantage.
Do you think Bitcoin will replace the dollar and other cryptocurrencies in 10 years as Mr. Dorsey thinks?
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