- Double-digit gains in top cryptocurrencies such as Ethereum, Binance Coin, and XRP have led to a $1.1 trillion increase in the overall cryptocurrency market capitalization.
- A recent survey of bank executives essentially shows that bitcoin and altcoins could replace fiat currencies in the next five years.
- The former Greek Finance Minister, Yanis Varoufakis, recently stated that Bitcoin cannot and will not replace fiat money.
The vast majority of bank executives believe that bitcoin and altcoins are scalable on a large scale and have reached mass adoption.
Expect “Hyperbitcoinization” within the next five to ten years
Cryptocurrencies made a big comeback from the decline seen in May 2021. A trillion dollars was added to the cryptocurrency market cap in July 2021 only.
The second phase of the upward trend is led by Bitcoin, as its price crossed $50,000 once again. Altcoins such as Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), and Ripple (XRP) have followed Bitcoin in a race to the top, sparking talks of “Hyperbitcoinization” among traders and the crypto community.
A survey of most bank executives showed that most of them believe that Bitcoin and digital assets like Ether, BNB, ADA and XRP have the potential to replace fiat currencies like the US dollar within the next five to ten years. The shift is described as “seismic”.
Linda Pawczuk, Deloitte Global Cloud Leader, says:
We discovered several findings that demonstrate a seismic shift in financial services resulting from the development of blockchain-based digital assets.
Deloitte revealed in its latest report that 76% of financial professionals believe that Bitcoin and cryptocurrencies can serve as an alternative to fiat currencies in the next five to 10 years. The report also reads:
The future is happening now. Participation in the age of digital assets is not an option; There is no escape from this.
Against the optimistic forecasts of bank executives interviewed by Deloitte, former Greek Finance Minister Yanis Varoufakis said,
Given the fixed supply, and given the fact that there is no democratic mechanism for deciding who gets [what] And how many bitcoins there are, it creates a kind of fiefdom run by the first bitcoin users. Central bank cryptocurrency, digital money is the way to go. This will kill more than two birds with one stone.
Varoufakis’ views are similar to those of the International Monetary Fund. However, recent developments and polls have revealed that bank executives have agreed that “Hyperbitcoinization” is coming and are waiting for their institutions to embrace it.