Why one day, Cryptocurrencies could outpower Fiat currencies (€, $, ¥)

Like few enthusiasts, i believe that one day, Cryptocurrencies will outpower the Dollar/Yen/Euro and that we’ll see Bitcoin keep rising, hitting $20k in the next few months. And probably $100k in the next few years… Why?

1/ The Short-term theory.

Advocates of Bitcoins (Engineers, Builders, Investors, Media) are being larger and louder everyday, creating a massive word of mouth. Due to this noise, the number of people holding and buying Bitcoin is constantly growing, and global interest in crypto is definitely rising. As Bitcoin total number is limited (scarcity / circulating supply) and its structural behavior is close to a social network, more people will have Bitcoin, more the Bitcoin value will goes up. As an example, if you’re the 1st user on Facebook, it sucks. But if when you start, they’re is already a billion people using the service, it should be amazing. This network effect is key to Bitcoin, and since it started growing 8 years ago, it has never stopped (despite big up & down moments). As Bitcoin became a collective consciousness movement, it is almost impossible to drop.

Looks like a big shift of interest is happening.

2/ The Long-term theory.

Speaking about gold… It has been the store of value by default since centuries. Over the past decades, biggest businesses were physicals. (brands, factories, transportations, supermarkets, banks).

3/ The « Gate » theory.

When you start paying attention to the Stockmarket, you’re able to chose between +1000 different options of stocks/companies to buy, in dozens of big different stock exchanges (NYSE, Nasdaq, CAC40, Euronext…).

4/ The Bitcoin community is (so) strong.

Cypherpunks, Cryptographers, Hackers, Idealists, Anarchists, Liberalists… They are the early builders & backers of Bitcoin, since 2009. They are independent thinkers, have strong convictions and are loyal to their ideology.

“But wait, it looks like a big bubble, doesn’t it ?“.

I’m hearing this at every diner, Well, as long as people that don’t understand the technical side and societal impact of the Blockchain are investing part of their savings into it, of course, we can call this a Bubble.

(From 1972 to 1976, gold volatility was as high as Bitcoin volatility today)

“Ok, but Bitcoin is used by dealers & terrorist”.

I’ve also heard this so many times. Well… Nowadays, with the onboarding requirements that all the major exchanges are asking (KYC) and few governmental regulations that might come, Bitcoin is actually way “safer” and way more “traceable” than the classic $100 bills.

Extract from a 1995 newspaper — Newsweek

It’s not just about Money (€, $, ¥).

Today, Bitcoin and Crypto-currencies are the buzzwords and have all the media attention. Indeed, Bitcoin was the first application using the Blockchain in order to create the first digital peer-to-peer cryptocurrency.

So, instead of institutions, banks and governments. Why don’t we trust Mathematics ?

And this is the key part. Cryptography and the Blockchain technology will allows us to build services & products that are way more secure, trustworthy and fast than Humans, governments & institutions.

Occupy Wall Street, September 2011.
  • Fiat currencies will be less powerful, only use by laggards, as the majority will use Cryptocurrencies to buy on Amazon, Ebay, Alibaba...
  • We could witness the biggest wealth transfer in human history. The old system is weak and could die. From its ashes a new system could arise.
  • Democracy around the world will be more present, with legitimate vote & real elections through the Blockchain.
  • Online privacy could be preserved.
  • People’s right of ownership in poor countries would finally be respected.
  • The 39% of the world population who still don’t have a access to a bank account could be part of the Ecomony.
  • Etc…

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