06 December, 2019 | AtoZ Markets – Although Bitcoin has been around for almost 11 years, the invention of Satoshi Nakamoto is still far from becoming a global currency. According to the study of Deutsche Bank and its chief analyst Jim Reid, Bitcoin and other crypto could replace fiat currency by 2030. As he describes in his research entitled "Imagine 2030", the crypto industry has the potential to replace the established financial system by 2030.
Crypto Will Replace Fiat Currency By 2030
An essential factor in this trend, as he notes, is the growing demand for dematerialized payment methods and anonymity. He also points out that uncontrollable inflation and the rise in the price of gold in the 1970s could be a significant cause of the trend towards cryptocurrencies.
According to him, global inflation could make people around the world lose confidence in paper money. Global inflation has been limited in recent years by China's economic growth. And its rise as "the biggest suppressor of global inflation over the past four decades" thanks to an increase in the massive supply of work. This era is coming to an end. According to the study, the Fiat system is now maintained by "fragile" parts.
The forces that keep the currency system together seem fragile, especially decades of low labor costs. Due to rising inflation and the burden of negative interest rates for citizens, doubts about public funds will increase. And the demand for other currencies will increase. After all, cryptocurrencies could replace the current financial system with Fiat's currencies.
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The Demand of the Cryptocurrencies
Eventually, inflation may become more and more entrenched in our system, and doubts may be raised about the viability of fiat money. As a result, demand for other currencies is likely to be much higher by 2030.
Besides, the Deutsche Bank analyst points out that cryptocurrencies have significant advantages over the current monetary system. Those are security, speed, minimal transaction costs, easy storage, and relevance in the digital age. Nevertheless, he notes that they have failed to assert themselves as a means of payment. However, he gives a different perspective for the future.
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