Look to the future, where “Bitcoin wins, fiat money loses, game over”

In his latest podcast, cryptocurrency investor Anthony Pompliano was optimistic that Bitcoin will become the global reserve currency. He said:

“In 25 years it will look very different”

Currently, the US dollar is considered the global reserve currency, with more than 60% of all banks worldwide holding reserves in this currency. According to Pompliano, that should change “On the way to a world with multiple currencies” limitless. He added:

“Don’t think it (Bitcoin) has to compete with fiat currencies as people think”

On the contrary, he stated that the devaluation of the dollar was guaranteed as the central banks had to create more and more national currencies. In addition, he emphasized the advantages of Bitcoin: “Zero Conversion Costs” when used in any country. There the “purchasing power” is protected.

Likewise Anthony Scaramucci, founder and managing partner of SkyBridge capital, also expressed hope that Bitcoin will become the world’s reserve currency. Therefore, he predicts that the US will soon digitize the dollar as well. Additionally, regarding Bitcoin’s volatility, Scaramucci added:

“Bitcoin is very volatile because it is in the early stages of adoption. Amazon had the same volatility curve 24 years ago. But if you had invested $ 10,000 in Amazon when you went public, you’d have $ 21 million today. “

In this context, Pompliano predicted two possible scenarios when it comes to Bitcoin and Fiat currencies:

“One is that they are in direct competition with each other, Bitcoin wins, Fiat money loses. The game ends “

In the above case, governments would have to digitize Fiat to remain relevant. In the latter case, Bitcoin remains valuable even in a competitive multi-currency market. However, the International Monetary Fund recently raised concerns about the introduction of Bitcoin by. voiced El Salvador. IMF emphasizes that the introduction of Bitcoin is looming “Macroeconomic Stability”. Earlier this year, Federal Reserve Chairman St. Louis James Bullard said: “I just think that for Fed policy it will be a dollar economy as far as the eye can see.”.

We don’t know if that will change. On a global scale, however, Pompliano agrees that governments that adopt the technology will outperform those who eventually adopt it.

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