The experts identified two options for the survival of bitcoin.
The main problem is how Bitcoin works, say the experts. It can be used to carry out a very limited number of transactions, besides it takes a tremendous amount of electricity.
“If the price of Bitcoin depends on whether it can replace the dollar, its value is equal to $0,” – writes the correspondent of the publication James Mackintosh.
According to the law of Gresham, the worst money squeezed out of circulation the better. People are more willing to spend tend to the depreciation of the currency issued by the government, than cryptocurrencies.
Provide Bitcoin real value can only two scenarios of development of events.
First option: the use of cryptocurrencies for illegal money transactions. But Bank analyst Dan Davies of Frontline Analysts, the Bureau noted that in the world of crime rates typically are set in dollars and not in Bitcoin. If some criminals and getting illegal funds into bitcoin, then convert it to normal.
According to the calculations of Davis, even if we assume that all drug trafficking will be transferred to the blockchain, then the real price of one Bitcoin will be only $ 571 (approximately 6 times lower than the current market rate).
The second scenario is to make Bitcoin an alternative to gold.
“Digital gold will retain its value, even if the national currency undergoes hyperinflation or completely lose their purchasing power. However, we need to recognize the “internal” value of Bitcoin, as it is recognized for gold”, – writes the edition.
“Bitcoin expects one of the extremes any success in replacing gold as a universal measure of value or a complete failure,” the paper concludes.
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