Will Bitcoin Become the Sixth Global Reserve Currency by 2030?

According to CNBC, Bitcoin industry insiders have expressed optimistic predictions about the performance of the cryptocurrency in the coming decades, saying it could be as widely used as the Swiss franc or the Australian dollar.

Magister Advisors, a UK-based company, interviewed 30 of the world's leading Bitcoin companies. According to the survey, these companies all have a consensus that Bitcoin will become the sixth largest global reserve currency within 15 years.

Reserve currency refers to a currency that is held in large quantities by multiple governments or institutions as foreign exchange reserves. Currently, the US dollar is the most popular reserve currency.

Bitcoin is a virtual currency that allows users to trade goods and services online. Currently, one Bitcoin is worth 2,560 yuan. However, many observers believe that the real value lies in the technology behind this cryptocurrency, namely blockchain, which makes all Bitcoin transactions public and transparent.

The survey also found that the top 100 financial institutions are expected to spend $1 billion on blockchain-related projects over the next 24 months. Jeremy Millar, partner at Magister Advisors, who led the research, predicted in a press release Tuesday morning:

“We have now reached a fork in the road between Bitcoin, which has proven itself as an accepted currency, and blockchain, which is more important, becoming a globally standardized distributed ledger for financial transactions.”

In September, 13 of the world’s leading banks joined a blockchain project to explore the potential of distributed ledgers in mainstream finance. Institutions such as Bank of America, Citigroup and Deutsche Bank have joined Goldman Sachs and JPMorgan Chase in signing the agreement.

In addition to financial applications, this public ledger can be used for many other applications. Pantera Capital, a US company, is investing in a company that uses this technology to help detect counterfeit luxury goods.

Bitcoin has been criticized for its price volatility and for facilitating illegal activity. Jeffrey Robinson, author of BitCon: The Naked Truth about Bitcoin, previously told CNBC that he believes Bitcoin is a "fake currency that's been spoofed into a fake commodity," and called Bitcoin advocates akin to "snake oil salesmen."

In a report on Tuesday, Magister Advisors directly mentioned the issue of volatility. The report stated that the main use of Bitcoin in developed markets is currently speculation. According to the respondents to this survey, 90% of the value of Bitcoin is used for speculation rather than commercial transactions.

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Original article: http://www.cnbc.com/2015/11/03/bitcoin-to-be-6th-largest-reserve-currency-by-2030-research.html
By Matt Clinch
Compiled by: Satuoxi
Editor: Satuoxi
Source (translation): Babbitt Information