Bitcoin has struggled in recent months, falling by more than half from its April high of around $ 65,000.
The price of bitcoin is still up from before the start of its last rally in October, a bull run that sent the combined crypto market to $ 2.5 trillion before collapsing (subscribe now at Forbes’ CryptoAsset & Blockchain Advisor and discover crypto blockbusters ready to earn 1000%).
Today, a panel of cryptocurrency experts predicted that bitcoin will overtake the US dollar as the dominant form of global finance by 2050, bringing the price of bitcoin to just over $ 66,000 from by the end of 2021.
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“Some countries will use bitcoin as the primary currency of choice,” said panelist, Thomson Reuters technologist and futurist Joseph Raczynski, who said he believed bitcoin would overtake the dollar by 2025 with a value of 150 $ 000. “With a fixed circulation, an ease of transfer, it will serve them well to switch to a” bankless “model inherent in this ecosystem.”
This year, El Salvador adopted bitcoin as legal tender alongside the US dollar in a controversial economic experiment. Other countries in Central and South America have indicated they may follow suit in an attempt to escape dependence on the dollar.
However, the price of bitcoin is expected to fall further before it hits a bottom, with a panel consensus of $ 25,000 per bitcoin, down by around $ 8,000 from its current price of around $ 32,000.
While 54% of the panel, surveyed by the personal finance comparison site Searcher, expect bitcoin to eventually overtake fiat money – sometimes referred to as “hyperbitcoinization” – by 2050, 44% of panelists, including University of Western Australia Associate Professor Lee Smales, did not do not expect bitcoin to ever become the dominant form of global finance.
“Ultimately, I think bitcoin (and many other cryptocurrency assets) will lose out to central bank digital currencies, many of which will be active by the end of the decade,” Smales said. .
This week, Federal Reserve Chairman Jerome Powell said one of the strongest arguments for a digital dollar is that it could undermine the need for bitcoin, other cryptocurrencies and so-called stablecoins, digital currencies such as tether that are pegged to traditional assets.
In Europe, the EU has moved forward with its plans to develop a digital euro over the next two years, while China has already started real-world testing of its digital yuan.
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Despite the warning, the price of bitcoin could fall further over the next few months, in the medium to long term, the panel made an average bitcoin price forecast of $ 318,000 at the end of 2025.
“We are in the midst of the institutionalization of bitcoin,” said Vetle Lunde, analyst at Arcane Crypto, who predicts a bitcoin price of $ 120,000 by the end of 2021 and believes bitcoin will be worth $ 300,000 at the end of 2025 and $ 500,000 in 2030. “More and more funds are joining the space, the first country adopted bitcoin as legal tender and now we have several publicly traded companies that own bitcoin. I think that this trend will continue. “