Brendan Blumer, the founder and CEO of Block One, the company responsible for the blockchain project EOS has out his weight behind the world’s first and biggest cryptocurrency, Bitcoin. Blumer took to is social media account to declare that bitcoin will eventually surpass gold to become the world’s number one store of value.
“Over the next two decades, #Bitcoin will replace #gold as the leading commodity to store value”
To replace gold, bitcoin’s market capitalization has to match gold’s outstanding of $7 trillion which is, to say the least, a herculean task. Assuming all 21 million Bitcoins are mined, each Bitcoin must be worth at least $333,333 to match gold’s outstanding. Put in perspective, Bitcoin is trading around $4,000 and reached an all-time high of around $20,000 in 2017.
There are some who believe that the scarcity that will be created when all bitcoins are mined will cause the price of bitcoin to skyrocket to unimagined highs. But again, when all bitcoins are mined then the miners who earned bitcoins for mining will have to rely solely on transition fees.
Blumer noted that at that time the fees for bitcoin transactions will increase and this can hamper its scaling. He noted, however, that scaling solutions like lightening network will carry transactions.
He explained that bitcoin, then, will be relevant because of its popularity and its liquidity will continue to grow. “Bitcoin won’t scale because it doesn’t need to,” Blumer noted adding that, “Most of the [transactional] activity will flow to scalable layer-two solutions, but Bitcoin’s awareness and liquidity will continue to compound.”
Billionaire Venture Capitalist Tim Draper Tips Cryptocurrency to Dethrone Fiat Currencies
Pro-crypto billionaire venture capitalist Tim Draper has reiterated his support for bitcoin noting that he is convinced the cryptos will take over from fiat government-issued currencies.
“I am bullish long term because I believe that no one will want to hold onto a currency that’s tied to a government,” he told TheBitcoinOfCryptoStreet in a recent interview.
“The great thing about cryptocurrency is that it is not tied to a government. Governments control you by controlling your currency. Governments have to switch from control to service. Governments have to start thinking in terms of, ‘How do I attract citizens to my government?’ as opposed to ‘You live here, you work for me.’”
Prior to Bitcoin, Draper has placed early bets with Skype, Hotmail and Tesla and his investment opinions are widely regarded. Citing progress in Japan, he advised governments to rethink their approach towards cryptocurrency from a mentality of control.
Making reference to Japan, he said:
“They said Bitcoin’s a national currency in Japan. And that attracted people to Japan, it attracted entrepreneurs, businesses, money. They all decided they’d go there because they thought, ‘Well, Japan is thinking of the future. And Japan is thinking of attracting me to their country.’”
Other countries are not doing that, and I think they need to. I think they need to recognize that the world is now open and as a government, you have to serve your people instead of the other way around.”
Bitcoin (BTC) Price Today / USD
At the time of writing, Bitcoin is trading at $4,011 to the U.S. dollar. Though still trading above they significant $4,000 mark, BTC failed to sustain its high of around $4,080 nor surge towards a key resistance at $4,200.
Although there are talks of an altcoin season around the corner, a regression in a slew top rated altcoin ensured that bitcoin increased its dominance in the market to 50.8 from a yearly low. This is still quite lower than 53 percent earlier in the year.