Will Bitcoin Be the Single Global Currency in 10 Years?

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Bitcoin exploded into the media spotlight in late 2017 due to skyrocketing valuations. Not only was declaring that you had invested in the next big thing fashionable, but people began to wonder if this was indeed the beginning of mass adoption. Bitcoin is a straightforward concept at its core. The objective is to create a peer-to-peer currency that does not require using a traditional financial institution.

Twitter CEO Jack Dorsey caused quite a stir in early 2018 when he declared, "The world eventually will have a single currency. The internet will have a single currency." "I believe it will be Bitcoin," Mr. Dorsey added, "probably over ten years, but it could go faster."

Bitcoin: A product of the financial crisis and a potential solution to the next one?

Hopefully, you can see that the global economy is not all rainbows and sunshine. The reality is that we are currently experiencing bubbles in the following areas:

• Personal debt
• The national debt
• The stock exchange

And this is a direct result of fiat currencies and government and central bank policy. Many experts argue that debt caused the 2008 financial crisis, which was about nations bailing out financial institutions. However, current consumer and national debt figures indicate that the next crisis will require the bailout of entire countries. 

Inflationary pressures are already affecting Venezuela, Argentina, Turkey, and Syria. Many people adopt Bitcoin through reliable platforms like biticodes, but there is more to it. As citizens lose faith in their currency, they naturally seek alternative means of exchange. And this is where cryptocurrencies such as Bitcoin come into play.

Which Countries Are Leading the Way in Bitcoin Adoption?

The United States has the most significant levels of Bitcoin trading — after all, it is the wealthiest country. There is no doubt that speculation is the primary motivator for Bitcoin adoption in developed countries such as the United States and the United Kingdom. However, why is Venezuela ranked fourth in June 2018 trading volume statistics?

Venezuela is currently experiencing the world's worst hyperinflation. According to IMF projections, Venezuelan inflation will reach one million percent in 2018. Venezuelans cannot rely on their government or financial institutions to protect their purchasing power. Venezuela's hyperinflation happens when citizens lose faith in their national currency. It's a vicious cycle in which citizens pay in local money and attempt to exchange it for something else as soon as possible. According to the data, many Venezuelans are converting their currency into Bitcoin.

Why Are People Turning to Bitcoin During a Financial Crisis?

Fiat currency acquires value from the citizens of a country's belief that it has value. This faith frequently shatters during economic downturns. Worse, governments tend to impose oppressive capital controls to prop up their currency in difficult economic times. Citizens, understandably, lose faith in their government, money, and financial institutions. 

Bitcoin is a viable alternative to fiat currency. Yes, it is currently volatile. However, Bitcoin's fixed availability of 21 million means no entity can hyperinflate it. Fiat currencies, on the other hand, have a theoretically limitless supply. Citizens must trust their government and central banks to stabilize their purchasing power. With that trust shattered, people are now putting their faith in Bitcoin.

Is the Twitter CEO Correct?

When he stated that he believed the world would have a single global currency, Jack Dorsey made an exceptionally bold claim. However, the fiat currency system may be obsolete during the next financial crisis.