The question above has been debated for as long as the first cryptocurrency “Bitcoin” has been alive. In fact, there is even a website tracking how many times newspapers have deemed Bitcoin “dead”; the number is in the hundreds.
While some segments of the market view them as a recent digital phenomenon, others recognize them as a distinct asset class.
For as long as crypto existed, people had various opinions on it. Today, everyone from your average guy in the pub, to venture capitalists, to central bankers, to statesman have an opinion on the topic at hand.
On one side, people argue against it and throw around words like “ponzi” or “fugazi”. One the other side, major financial entities invested billions of dollars into the cryptocurrency, highlighting its potential use for diversification and future growth.
Regarding controversies in the cryptocurrency sector, FTX provides a case study. Regulatory bodies and cryptocurrency enthusiasts have observed its marketing strategies and growth rate. In 2023, Goldman Sachs, a major financial institution, provided data classifying the cryptocurrency Bitcoin as one of the best performing asset classes.
In this article we will show you what experts are saying about crypto and highlight potential future trends in this sector.
What Experts Are Saying
As already stated in the introduction, crypto is very controversial. Many love it, many hate it. Hate it or love it, crypto is still alive and gets more attention than ever. But what are the brightest people on the planet saying exactly? Let’s find out together as we’ve compiled the views of six different personas. From nation leaders, to famous investors, to CEO’s of big corporations, you will get the full spectrum of pro’s and con’s of crypto.
On one side, we’ve got El Salvador’s President Nayib Bukele chiming in with, “There are more than 50 million millionaires in the world. Imagine when each one of them decides they should own at least ONE #Bitcoin.” He’s pointing at a supply-demand mismatch which, according to him, inevitably means “A gigantic price increase is just a matter of time.”
Yet, on the opposite bench, you’ve got Charlie Munger who’s, well, not mincing words: “Sometimes I call it crypto ‘crappo,’ sometimes I call it ‘crypto s—.’” That’s Munger essentially rolling his eyes and saying, “Why would anyone buy this stuff?” He categorizes it as ‘crazy, stupid gambling,’ which sounds like something you’d hear in a heated Monopoly game, but this is real money we’re talking about.
But wait, there’s more. We have Balaji Srinivasan delivering an impassioned pitch, wherein he equates crypto to a digital lifeboat, essential for preserving the very essence of Western civilization. He firmly believes that “If you care about free speech, privacy, free trade, rule-of-law, and economic stability, then you should care about cryptocurrency.” Balaji envisions multiple futures where automation and crypto will work hand in hand. He anticipates that, someday, everyone will have a robot at home to do the laundry and a trading robot capable of understanding, for example, candlestick signals to generate money, freeing up time for individuals to pursue other activities.
Yet, ever the sceptic, Peter Schiff retorts with, “Nobody values bitcoin for the bitcoin; they value it because they believe they can exchange it for something else.” And where, according to Schiff, is Bitcoin most used? “In crime.” Ouch.
Amidst these clashes, Blackrock’s CEO Larry Fink gives us a broader view, noting that cryptocurrency, due to its international nature, could well “transcend any one currency in currency valuation.” A global view on a global phenomenon, perhaps?
Though, for every internationalist viewpoint, there’s a counter. Gerry Gensler of the SEC firmly plants his feet and says, “Look, we don’t need more digital currency. We already have it. U.S. dollar? Digital. Euro? Digital. Yen? Also digital.”
Yet, no matter where the opinion pendulum swings, it’s evident that the cryptocurrency movement isn’t limited to U.S. shores. Cities from Singapore to Dubai to Hong Kong are waving the crypto flag, positioning themselves at the forefront of the global movement.
Potential Futures for Cryptocurrency
Steady Integration
Know one can predict the future, but we can at least try to create probabilities for potential outcomes. What we certainly know is that there will not only be one future with or without crypto. We will have a multifaceted future as the opinions are too different and both camps “pro” and “anti” crypto will fight it out.
One pathway is the Steady Integration, where digital currencies see a gradual acceptance into the global financial system. We can actually see this from many companies already showing support and taking on crypto into their balance sheets.
To date, we saw Elon Musk with Tesla, Jack Dorsey with Block and even Paypal invest in Bitcoin. Elon Musk as many know, is actually a big fan of the entertaining cryptocurrency Dogecoin too – as he always likes to claim “The most entertaining outcome is the most likely”.
However, for this integration to be considered ‘steady’, the larger tide of financial institutions would need to recognize digital currencies like Bitcoin not just as speculative assets, but as genuine hedges against inflation and traditional stores of value.
Fragmented Landscape
Another scenario is obviously where only parts of the current crypto sector will make it. Similarly to how only a handful of big companies came out of the 2000 dotcom bubble. There were thousands of companies created, but with time – the companies we call “Big Tech” today – dominated. Perhaps there will also be specific cryptocurrencies and blockchain projects that will rise to prominence, while many fade into obscurity. Mainstream adoption indicates this trend. As of 2023, around 400 million people globally own cryptocurrencies.
This is impressive, that is for sure, but the holdings are concentrated within a very small amount of cryptocurrencies. For every Bitcoin or Ethereum, there are countless lesser-known tokens that struggle for recognition.
Complete Transformation
But then there’s the potential for a Complete Transformation. Perhaps that would result in a new system to be created. A system that is completely decentralized and be a complete opposite to our current financial and tech systems. A full alternative. DAOs, social tokens, Web3, and crypto-enabled metaverse experiences all point toward this direction. It might actually completely change the way how we think about online collaboration, interaction and ownership.
However, like all transformative journeys, this one too has its hurdles. Regulatory factors swing between support and skepticism. While nations like UAE are creating crypto-friendly environments, others, including China, express stark reservations. The tug-of-war continues in the U.S. too, with whispers of restrictive operations after banking upheavals.
Yet, the resounding ethos of the crypto world remains hard to ignore. As Chris Dixon, an innovator and investor, points out: “But the same creative patterns that happened in the 2000s live on today… My belief is that the best place to look is crypto and web 3.”
Final Words
Can’t live with it, can’t seem to live without it, right? We’ve ventured through the highs, the lows, the euphoric bull runs, and the cringe-worthy crashes. We’ve watched governments both embrace it and give it the cold shoulder. Some of our favorite talking heads in finance cheer it on, while others dismiss it like it’s a joke they’ve heard one too many times at a cocktail party.
Here’s the thing: the beauty of the financial world (or its curse, depending on your perspective) is its dynamism. The stock market wasn’t built in a day, and neither will the crypto empire. Every new innovation comes with its army of naysayers. Remember when they said the internet was just a fad? Or when mobile phones were “surely just for the elite”? Well, we know how those predictions turned out.
Cryptocurrency, for all its quirks, controversies, and conundrums, has something irrefutably powerful: it has caught the world’s attention. And not just the world of finance geeks and tech nerds. Everyone, from your next-door neighbour to the nation’s central bank, has an opinion.
So, does crypto still have a future? Perhaps the question should be: when has anything so passionately debated, so widely adopted (and also rejected), and so constantly evolving not had a future? The real zest of the matter is not just if crypto will stick around, but how it’ll shape our tomorrows. Grab some popcorn; this show is far from over.
