One glance at the crypto market today is sure to leave one angry and sort of disillusioned with respect to retiring early from your crypto gains. But that is what happens when there is a new financial industry such as this. Cryptocurrencies are a bit volatile due to the fact that they are in their infancy in terms of general acceptance and adoption by the populace. The coin that gives the general direction of the market is none other than Bitcoin (BTC) and that future does not look too good in terms of where it is headed.
However, even with the current turmoil, good news has been spotted. Niall Ferguson, a noted historian, accomplished author and commentator, has made a bold prediction about Bitcoin. Mr. Ferguson was quoted as saying that Bitcoin and cryptocurrencies are the financial system of the future. He was talking at a seminar organized by the Bank of England and had this to say:
The financial system of today is not fundamentally that different than the financial system of the pre-crisis period, except that big banks are better capitalized. I don’t think much else is really different. The novelties, the things that will really matter ten years hence are still relatively small in scale. Whether its bitcoin or cryptocurrency generally or the massive revolution in online payments that is being achieved by the big Chinese tech companies, that’s the financial system of the future, and it is still small enough not to be systemically important in 2018. In short, I am left feeling we are only a matter of time before the next crisis.
Mr. Ferguson was talking about the 2008 financial crisis and the general direction of the financial industry in our present day times.
Bitcoin and cryptocurrencies have revolutionized banking by popularizing peer-to-peer transactions on a level and scale that might make banks obsolete if they do not adapt with the times. Perhaps this is why the Bank of England was hosting the seminar in the first place. We have also seen major Wallstreet banks and firms such as J.P Morgan Chase, embracing blockchain technology and musing about crypto trading.
Therefore, it is very easy to side with Mr. Ferguson when he says Bitcoin and Cryptocurrencies are the financial system of the future.
With respect to his last statement about the next financial crisis being around the corner, one can only assume that it will be brought about by the decentralization aspect self evident in cryptocurrencies. Once mass adoption increases, the big banks will be in trouble.