Bitcoin has struggled over the past few months, more than halving from its peak of around $65,000 in April.
The price of Bitcoin is still significantly higher than it was before it started its last rally in October, a bull run that sent the cryptocurrency market astonishingly high to $2.5 trillion before the crash (Sign up now at Forbes CryptoAsset & Blockchain Advisor and discover eligible cryptocurrencies for 1,000% gains).
Now, a panel of cryptocurrency experts has predicted that bitcoin will overtake the US dollar as the dominant form of global finance by 2050 — putting the price of bitcoin at just over $66,000 by the end of 2021.
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“Some countries will benefit from bitcoin as their preferred base currency,” said Joseph Raczynski, a panel member, technologist and future scientist at Thomson Reuters, Joseph Raczynski, who said he believes bitcoin will surpass the dollar by 2025 by $150,000. “With stable trading and ease of transfer, it would be beneficial for them to move to the ‘non-banking’ model that is inherent in this ecosystem.”
This year, El Salvador adopted Bitcoin as legal tender alongside the US dollar in a controversial economic experiment. Other countries in Central and South America have indicated that they may follow suit in an attempt to escape dependence on the dollar.
However, the price of bitcoin is expected to fall further before finding a floor, with the committee unanimously agreed at $25,000 per bitcoin – down about $8,000 from its current price of around $32,000.
While 54% of panel members, surveyed by the personal finance comparison site finder, expect Bitcoin to eventually overtake fiat currency – sometimes called “hyperbitcoinisation” – by 2050, 44% of panelists, Including University of Western Australia Associate Professor Lee Smalles, we don’t expect bitcoin to become the dominant form of global finance.
“Ultimately, I think bitcoin (and many other crypto assets) will lose out to central bank digital currencies — many of which will be operational by the end of the decade,” Smalls said.
This week, Federal Reserve Chairman Jerome Powell said one of the strongest arguments about a digital dollar is that it could undermine the need for bitcoin, other cryptocurrencies and so-called stablecoins, digital currencies like a rope tied to traditional assets.
In Europe, the European Union has moved ahead with its plans to develop a digital euro over the next two years while China has already begun real trials of its own digital yuan.
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Despite the warning that the price of bitcoin may fall further in the coming months, in the medium to long term, the commission has come up with an average bitcoin price prediction of $318 000 towards the end of 2025.
“We are in the midst of Bitcoin institutionalization,” Arcane Crypto analyst Vetle Lunde said, predicting $120,000 in bitcoin by the end of 2021 and believing that bitcoin will be worth $300,000 at the end of 2025 and $500,000 in 2030. “More money is joining the space, the first country has adopted bitcoin as a legal tender, and we now have several publicly listed companies that own bitcoin. I believe this trend will continue forward.”