Bitcoin likely won’t entirely replace current financial system, Coin Center director says

Bitcoin might not imply an finish to conventional foreign money and banking, in response to Peter Van Valkenburgh, analysis director at Coin Center. 

“I think there’s folks in the Bitcoin community who probably make too many noises about how Bitcoin is going to dominate all economic systems and nobody will be using dollars anymore, and nobody will be using banks anymore, and I think that’s actually a little foolhardy,” Van Valkenburgh said in a Friday interview with the Washington Journal on C-Span.

“The fact of the matter is that there’s going to be times when a Bitcoin transaction is what you want. Definitely if you are in an oppressive state like Nigeria or Belarus you might find it more useful to use Bitcoin. In the U.S., we have a pretty stable banking system. We have the rule of law, we have a pretty well-functioning government.”

The means wherein Bitcoin is used can rely on customers’ geographic location. In some countries, Bitcoin (BTC) is seen as extra of a speculative asset, used for buying and selling and investing.

In other regions, Bitcoin can function a car of better freedom, offering customers extra flexibility and sooner funds, in addition to an avenue out of inflationary troubles when in comparison with conventional finance and foreign money.

“Generally speaking, here in the U.S., you’ll probably still use credit cards and Venmo and things like that, but maybe you’ll want to buy some Bitcoin because it can be a way to balance your investment portfolio against the threat of inflation,” Van Valkenburgh stated, subsequently referring to similarity to gold by way of restricted provide.

“So maybe, you know, as part of a balanced portfolio that includes other safer investments, you might have a little bit of Bitcoin to hedge against inflation,” he famous.

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