The future of bitcoin is certain, because in the light of philosophy everything, has been once created, has definite prospects. Another question is whether they will be positive or negative. Many people are worried about this problem, since investments in the cryptocurrency have increased significantly in 2017-2018, and considerable hopes were placed on them. Instead of the fortune-telling, let's hear the opinion of famous figures in the world of finance and successful businessmen.
Table of content:
- Tim Draper’s positive opinion
- Bill Gates is against anonymity
- Warren Buffet believes in real wealth
- Conclusion: BTC must prove itself
Tim Draper: "Cryptocurrency will replace fiat money in 5 years"
Tim Draper is a famous venture investor. He established Draper Fisher Jurvetson, which invests in technology projects. The businessman predicts a great future of bitcoin and his ideas did not arise out of thin air: in 2014 Tim Draper invested $ 20 million in the purchase of 30 thousand BTC. At the end of 2017 the wealth was estimated at 225 million! In a word, Mr. Draper has a reason for joy and he obviously wants to inspire other people.
One of the questions of Forbes magazine, addressed to the investor, was the cryptocurrency and its future. Draper is sure that in five years no one will remember about fiat money. Moreover, such a person, who offers to pay in cash, will be laughed at. All payments in the world are going to be made with bitcoins and leading alternative coins, which will interact in a harmonic manner with each other.
Why does a businessman think that fiat money will cease to exist? According to him, the value of the national currency outside the country that issues it is much lower than the real price. Draper takes Nigeria as an example. Its domestic currency called Naira is estimated to be 30% below its local rate. Of course, the euro and the dollar have very different possibilities, but, nevertheless, when converting these currencies, there are certain costs. Cryptocurrencies do not have all these drawbacks.
In practice, for each user the cryptocoins are also much more convenient. According to Tim Draper’s words, for each coin its own exchange rate will be set, which is displayed in the wallet. In all likelihood the investor is a great lover of a cup of coffee at Starbucks because he brought this place as an example. While paying in the café with the cryptocurrency, your wallet automatically chooses the most favorable one for the transaction.
Bill Gates: "Anonymity and big business are incompatible"
The founder of Microsoft Bill Gates could not ignore the future of bitcoin, so his response to the publication of Bloomberg can not be called monosyllabic. The businessman elaborated on the potential of the cryptocurrency and the prospects for its introduction into the payment flows. What is the Gates’s view in general? Analysts believe that it is confusing and contradictory. Nevertheless, the cryptocurrency is given a comprehensive evaluation, in contrast to the above opinion.
Gates sees bitcoin as a good and reliable tool for making transactions around the world. Minimum costs are attractive first. The world needs an inexpensive transaction. Cryptocurrency is better than fiat money, because a person does not need to contact the bank, but major transactions remain in question. Is bitcoin convenient for this purpose? Generally not. Gates also emphasized that he does not see the virtual coins as an ideal scheme for future payments.
What alarmed the richest man in the world? First, the entry of bitcoin on the mass market will be difficult due to its anonymity. Terrorism, the sale of banned goods and services, money laundering – these are the flip side of anonymity. In big business, no participant will feel comfortable if there is even a small risk of even unwitting participation in the shadow business. Perhaps it makes sense to create a technology similar to bitcoin, but with a more transparent background.
The above Bill Gates’s view was heard during the banking and financial conference in Boston in 2014. The questions about the problems and challenges of the financial industry related to the innovation were raised at that time. What about the actual opinion of the billionaire? In February 2018, he was one of the most honored members of Ask Me Anything on Reddit. Several users asked Gates about the bitcoin future. There was no concrete answer. As for bitcoin, the businessman said that his team is developing own digital money, but "it will not be anonymous".
Warren Buffet: Bitcoin is a big bubble that will burst soon
Can one not listen to the opinion of a person whose wealth is one of the largest in the world? Is it possible not to take into account the criticism of a person who has been engaged in investments all his life, knows the world financial system from A to Z? We believe that this would be absolutely wrong. Negative opinion has the right to exist, and it is not worth to praise the idea all the time, ignoring the potential risks associated with it.
Warren Buffet was laconic and to the question of the journalist CNBC he answered sharply and briefly that the hype around bitcoin cannot end well. However, the investor did not dare to predict when the entire system would collapse. Buffett firmly believes in the fact that the cryptocurrency and the blockchain will “have their bad ending." The businessman himself certainly does not plan to invest in BTC. Moreover, he does not advise anyone to do this and recommends dealing with "worthy business".
Buffet, with his characteristic brevity, has repeatedly spoken about digital innovations. The businessman believes that all the blame is the people’s euphoria, and Wall Street not only does not stop this admiration will, but in every way encourages it. Also, the doubts of the billionaire are connected with the fact that bitcoin is not a valuable asset and for this reason it is not possible to evaluate it. "Because of this uncertainty, it is a real bubble!" - Buffett concluded.
As we see, the opinions of the financial elite representatives are divided. Some predicts fantastic opportunities for cryptocurrency. Others are modest as for the forecasts and believe that changes are needed. Many experts do not accept any digital assets in principle. The digital economy is at the stage of its origin, numerous and powerful tectonic shifts occur in its structure, which is expressed in the serious volatility of the rate. State regulators began to look more closely at the novelty, and in some countries, for example, in China, a complete ban is imposed. The future of bitcoin depends much upon the mass media. Many of them submit information inaccurately and often spread panic. For its part, bitcoin needs to prove its ability to be useful for the society and economics.