Niall Ferguson, a British Financial Historian, believes that Bitcoin is an Option on Digital Gold. This was said during an interview that was done by Breaker Mag, a magazine about the blockchain.
Ferguson is a famous historian who has written fourteen books. He said that BTC was only money in a limited manner. He added that it was impossible to use it as a means of payment due to the massive volatility.
The Future Of BTC
He noted that BTC would be used as insurance in the future. This was because it was a difficult asset to confiscate. Thus, anyone could hoard their private keys much in the same way the rich in Europe used to hoard precious metals as a store of wealth.
Ferguson was also confident that money would be digital in the future. However, he is still not happy about stablecoins. He is not sure that they have a future in the world. These are coins which are designed to minimize the volatility that is associated with crypto.
They do this by being pegged to commodities, fiat currency or even an algorithm. He added that fiat had performed quite well in the recent past when considering inflation. He added that creating a substitute that had been working well since its creation in the 70s was not a strategy that would work out.
Ferguson also stated that creators of stablecoins should understand BTC is unique. It is not correlated to any other type of asset class.
In regards to what the money would end up looking like, he has an idea. Like many others, he was hopeful of a better payment system. This is a system where the richest 0.1 percent and the rest would all be treated the same. Today, the system seems to have it in for the masses while giving the extra rich an edge. This has caused many to rely on payday loans.
Ferguson was also concerned about central entities taking over the crypto payment system. For instance, he was concerned about what would happen if Google or Amazon decided to launch a crypto coin.
This would lead to their AI systems being able to monitor transactions and extend the privacy invasion on the masses.
A former Goldman Sachs partner also expressed a similar sentiment. Mike Novogratz, the founder of a crypto merchant bank, has said that BTC could be digital gold. In his view, BTC will soon become sovereign money.
He did not give an explanation of why he thought so. He added that some crypto might have to trade high security for better efficiency. This issue has prevented mass adoption. The highly secure blockchain means that transactions can sometimes take hours to confirm.
He also spoke about the price of BTC. Right now, BTC is trading at around $4000. However, he does not believe a bubble will come anytime soon. He added that it could get to $8000 and stabilize around that point.