Cryptocurrency has successfully penetrated the mainstream market, from underdog to one of the vital player in the financial world.
This is the very reason why Thomas Frey disclose this premonition that it will soon replace national currencies by 2030.
As of posting, the cryptocurrency market, which trades various digital-based coins, can look exciting, scary, and mysterious all at once to the casual observer.
The leader crypto unit, Bitcoin, dramatically surged in value and steeply dropped (before picking back up) in recent months. ICOs (initial coin offerings for new cryptocurrencies), meanwhile, are emerging at a head-spinning rate.
“Cryptocurrency is very much here to stay,” said futurist and author Thomas Frey, noting that he’s speaking to the Federal Reserve in September on the topic.
Frey predicts that “cryptocurrencies are going to displace roughly 25% of national currencies by 2030. They’re just much more efficient, the way they run.”
The rise of cryptocurrencies over the past couple years represents “the legitimization of a new asset class emerging alongside the traditional global economy,” according to Dr. James Canton of the Institute for Global Futures.
“I’d say you can expect an exponential increase of new investment vehicles to come from cryptofinance,” he added.
Some money will be lost in the cryptocurrency market, to be sure, but Canton believes there’s also possibility to earn vast riches.
It won’t be like cash.
“Bitcoin is a lot like selling real estate,” Frey said. As when you change ownership of property, selling Bitcoin means giving up a discrete digital chunk to someone else—it just happens in the cloud. While Visa and other companies have made it easier to use Bitcoin for regular transactions, cryptocurrency is still not something you’d usually spend at the supermarket.
“I see crypto investments similarly to how I see traditional investments in stocks and bonds, which go through cycles,” Canton said.
While “there is more volatility in cryptocurrencies,” he added, “it’s a worthy area for people to experiment with their investment portfolios really carefully.”
“The future of commerce will be shaped by the crypto supply chain, which will have less friction and more exponential value between buyers and sellers of all products,” Canton said. And while it’s hard to bet on any single cryptocurrency at the moment, funds such as Apex bundle multiple tokens for those looking to enter the market.
With this scenarios in the near future, they said governments will play a (still unknown) role.
“The government is going to tend to play their role. I think the FCC could provide prudent regulation to accept and encourage innovation with cryptocurrencies,” Canton said. “There’s a role for governments to participate, but I do think too much regulation will be intrusive.”