Bitcoin has been doing extremely well as of late. The currency recently spiked as high as $56,000 per unit, and the world’s number one digital currency is now enjoying a total market cap exceeding $1 trillion. The asset has been on a serious momentum hike, and it doesn’t look like things are set to die down anytime soon.
Bitcoin Is Seen Differently By All
But the asset isn’t seen in a positive light by everyone. In fact, Eric Rosengren – president of the Federal Reserve Bank of Boston – is convinced that things are only temporary, and that the bitcoin boom we’re all witnessing at this time isn’t going to last much longer. In a recent interview, he claims:
Personally, I’ve been surprised that bitcoin has continued to flourish.
One of the big problems that he has with bitcoin is that he doesn’t see it having any long-term use in the future. He’s convinced that while there is space for digital currencies, he believes that many banks will ultimately issue their own centralized digital assets. This, he thinks, will knock bitcoin out of commission, and it will be replaced by bank-issued virtual currencies.
I would suspect, down the road, that a number of central banks will have digital currency. When there is a digital currency available, other than the underground economy, it’s not clear why people would use bitcoin. I would expect, over time, bitcoin prices to come under pressure.
He says that there are already numerous countries – such as China and Sweden – that are now heavily engaged in centralized digital currency systems for residents, and he’s been tasked with looking into the possibilities of a national virtual asset for the U.S.
Furthermore, he notes that some smaller banking systems – such as those in the Bahamas – have even been experimenting with the idea of centralized digital currencies, such as the Sand Dollar which was released last year. He’s confident that they will help to push bitcoin aside, and the world’s number one digital currency could be forgotten with time.
But while this is certainly a possibility, it’s hard to believe for the time being considering how much attention bitcoin has been getting these past several months. Recently, billion-dollar companies such as General Motors say they are looking at the possibilities of allowing BTC payments for goods and services in the future, and the currency has experienced a near 100 percent rally since the beginning of the year.
The Asset Is Still Growing
Figures such as Sergey Nazarov – co-founder and CEO of Chainlink Labs – are weighing in and saying:
Right now, companies around the world are being asked to justify why they don’t have any exposure to what is one of the best-performing assets of the last decade. Media, researchers and the wider public have really begun to understand the long-term implications of bitcoin’s use case as a store of value.