Andreas Antonopoulos Speaks on Bitcoin Adoption and Potential Traditional Market Changes
Anyone that knows cryptocurrency knows Bitcoin, as much as someone would hear bandage and think of the brand Band-Aid. The financial freedom that it affords so many people has caused quite a following, and one of the biggest proponents of Bitcoin has been Andreas Antonopoulos, who is also known as the author of Mastering Bitcoin.
Antonopoulos was recently the subject of an interview with “whatbitcoindid” with Peter McCormack, where he discussed how the financial world could change if Bitcoin ended up taking it over. Furthermore, if Bitcoin’s reach were to span that far, how would other sectors change. As the interview commenced, McCormack asked what Bitcoin is to Antonopoulos, setting the stage for the rest of their conversation.
Simply put, he said,
“I would say Bitcoin is the fifth evolution of money in its most abstract form coupled to a new governance model that delivers the purest form of network governance we’ve ever seen.”
He also spoke on how Bitcoin has proven repeatedly that it is incredibly resilient, especially in a market where the majority of investors side with traditional finance. However, the number of Bitcoin fans and those knowledgeable of the coin is constantly growing.
In the event that many companies chose to hold their value in Bitcoin, while simultaneously refraining from bringing it back to fiat currency, Antonopoulos said that the high transaction volume alone would create more liquidity. However, that liquidity would remain the same, with or without the return to fiat. As soon as this type of volume would begin, the volatility of the market would be instantly impacted, even more so when the money started moving regularly.
Antonopoulos said that these long-term decisions and becoming an integral part of companies’ business activities would completely change the worlds “attitude” towards Bitcoin. Instead of being a speculative crypto asset, it would end up being more a medium of exchange in the whole of the industry. Furthermore, the ability to become a primary currency in any country depends on numerous factors, and he suggests that there would be compromises to make the technology what the world needs it to be in these situations. Antonopoulos expressed that there are some compromises that would be outside of his own comfort zone if that were to happen.
He added that the volatility of Bitcoin is much like the “chicken and the egg” argument, because the lack of adoption is due to volatility, and the volatility prevents it from being adopted. Many people have questioned how it can be adopted with this volatility, which Antonopoulos compares to asking if something can ever get big when it is currently the opposite. The whole argument, in and of itself, is “cyclical,” because it will always have that roundabout reasoning.
If Bitcoin were to take over governments and similar companies, Antonopoulos suggested that “very significant and steep implications” would take place. He stated that Bitcoin is the next step in technological advancement after the internet. Furthermore, despite the knowledge that he has of the market and Bitcoin, there is simply no way to predict how other sectors would be altered by widespread adoption. Still, his best theory is that it would rival the Industrial Revolution because it takes civilization through a “deeper transition” that would alter humanity as we know it.