Would the crypto revolution be the financial system of the future?
For Niall Ferguson, British economic historian, the answer to this question is indeed “yes”. Some researchers in the field of virtual currencies think like him that this revolution will exceed the current banking system.
The next crisis is on the horizon
First of all it must be said that Niall Ferguson is a renowned historian who has published about fifteen books. Among them, “The House of Rothschild, or” The Ascent of Money “.
Last Tuesday, he gave a seminar at the Bank of England on the theme: “The financial crisis of 2008”.
In conclusion of this seminar, Ferguson explained that Bitcoin was a real challenge for the current system of fiduciary money.
He said: “Today’s financial system is not fundamentally different from the pre-crisis financial system, except that the big banks are better capitalized, and I do not think that much else is The novelties, the things that will really count in ten years, are still relatively modest: whether bitcoin or cryptocurrency in general or the massive revolution of online payments that the big Chinese technology companies are making, it’s is the financial system of the future, and it is still small enough not to be important in 2018. In summary, I have the feeling that the arrival of the next crisis is only a matter of time. “
Bitcoin could reach the price of 300000 USD
Ferguson had already talked about cryptocurrency in 2017.
He wrote: “At some point, there is no doubt that regulatory changes in the United States will deflate the current bitcoin bubble. But they will not stop, this financial revolution. Think of it this way. The maximum number of bitcoins that can be created is 21miles. According to Credit Suisse, the number of millionaires in the world is 36 million. Their total wealth is $ 128.7 billion. If millionaires collectively decided to hold only 1% of their bitcoin wealth, the price would not be $ 15,000, but more than $ 60,000. If they increased that to 5%, the good price for bitcoin would exceed $ 300,000. I’m not saying that’s certain. I’m just saying that my teenage son thinks it’s possible. “
Ferguson also analyzed the explosion of the ICOs and warned against the scams they might sometimes represent: “I wish I had a Bitcoin for every fake” white paper “that was shown to me in the last six months , by people trying to raise money before the SEC acts, “Ferguson said last week.” When there is no settlement, then the scammers are very quickly on the scene. “
But Ferguson is not the only one in the academic world to say that Bitcoin is shaking up recent economic history.
For example, Professor Robert Shiller, Nobel Prize in Economics in 2013, who published an article last Monday. In this article, the Nobel Prize explains that the craze for Bitcoin is in line with previous attempts to reinvent the currency.