Forbes Chairman: Stablecoins will outperform speculative cryptocurrencies in the future, and Bitcoin should continue to be developed

Billionaires and influential businessmen around the world are increasingly talking about Bitcoin as a hedge and investment while giving voice to the massive money printing in the United States and uncertainty in financial markets.

The latest to tout Bitcoin is Steve Forbes, chairman and editor-in-chief of Forbes Inc. He believes the currency can help stabilize a government-controlled financial system and he has urged continued technological development of the Bitcoin blockchain.

America is following Japan's path

In an interview with the Center for Natural and Artificial Intelligence in the United States, Forbes spoke about cryptocurrencies, financial digitization, and the future of money among broader topics.

He noted that cryptocurrencies have become a technology “of recourse” as governments turn to quantitative easing and zero-interest credit to revive their economies.

However, too much money printing can lead to long-term financial instability. Take Japan, for example; the government conducted a quantitative easing program in the late 1980s, which led to the "lost decade" of 1990-2000, a period defined by falling economic output and inflation.

Even three decades after quantitative easing, Japan has yet to fully recover, and critics say the U.S. will head in a similar direction if nothing else is done.

While Bitcoin and the broader crypto market have helped in the aforementioned regards, Forbes noted the huge volatility in the BTC market.

Hard caps are a mistake

Bitcoin's 21 million supply has also been questioned, with Forbes noting that limiting supply to ultimately create an increase in value was a mistake made by Bitcoin's creator. He explained that money is meant to facilitate commerce, not "control the economy" and hinder businesses with scarcity.

When asked about Bitcoin’s popularity in Syria, Lebanon, and Venezuela, Forbes attributed it to the failure of the overall economic structure rather than the monetary gains of Bitcoin itself.

Bitcoin adoption has increased in these three countries since last year. The report states that Bitcoin and ETH prices are high in these countries, and several retailers in Venezuela now accept BTC as a payment method for everyday products.

Political obstacles to Bitcoin

Forbes believes that Bitcoin will not be widely adopted without political and regulatory battles. In fact, he points out that the cryptocurrency will never receive the permission that would allow it to operate as widely as possible.

His solution? Bitcoin should continue with development and project launch, and deal with follow-up issues later.

Regarding the future of cryptocurrencies, Forbes said that the cryptocurrency market needs to become “extremely easy to use” to ensure that it moves beyond its use as crisis currency. He added that measures to control volatility need to be implemented.

In his opinion, the stablecoin market is booming and will prove to be superior to speculative digital assets in the near future.

At the same time, he noted that Libra or a hypothetical Amazon coin built by Facebook could dominate the cryptocurrency market, given the sheer “intellectual” talent that is and could be used to develop digital currencies and related frameworks.

Link to this article: https://www.8btc.com/article/611841
Please indicate the source of the article when reprinting