According to a survey of 30 of the largest Bitcoin industry companies, bitcoin will be the 6th largest reserve currency in the world by 2030.
The survey’s findings were published by UK-based Magister Advisors, which advises the technology industry on mergers and acquisitions.
The industry’s prediction is a bold one: according to its strict definition, a reserve currency is a currency held in large amounts by governments and institutions as part of their foreign exchange reserves. In other words: the Bitcoin companies believe that governments will be holding on to bitcoin, and lots of it.
The world’s major reserve currencies are the dollar, euro, yen, and British pound. The Swiss franc is also popular, as are commodity-linked currencies like the Canadian, Australian and New Zealand dollars. China wants its yuan to be the world’s 5th reserve currency. Bitcoin, according to the industry insiders, will join this company.
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To date, we have yet to hear of any major government adding bitcoin to their foreign reserves (we certainly would have heard about it, and bitcoin would have a real reason to rally). So governments have 15 years to get their act together, and instead of warning the masses over bitcoin’s purported dangers, they should instead buy some…
The US in particular has had plenty of opportunity to hold onto bitcoin. The government seized 173,656 bitcoins (today worth $66 million) from Silk Road and its convicted operator, Ross Ulbricht, but is liquidating them, the final auction happening today.
The research also focused on the value of Bitcoin’s blockchain. The report asserted that the blockchain was the most significant advancement in enterprise IT during the past decade. It said that the top 100 financial institutions will spend $1 billion on blockchain projects during the next 24 months- roughly the equivalent of all industry venture investment to date.
2015 has seen a surging interest by financial institutions in blockchain technology- including that of Bitcoin, but more so, custom-built distributed ledger systems that are permissioned for designated users.
“We have now reached a fork in the road with bitcoin and blockchain. Bitcoin has proven itself as an established currency. Blockchain, more fundamentally, will become the default global standard distributed ledger for financial transactions,” predicted Jeremy Millar, partner at Magister Advisors, who led the research.