An entrepreneur who tracks the price of bitcoin and price markets has said that the digital currency will eventually replace fiat currencies as ‘each of these fail.’
Speaking with Russia Today, William Mook, said:
It will do this because it secures honesty and value using the blockchain, without reference to trusted third parties. It is happening today.
Mook’s comments come at a time when bitcoin has been enjoying a rise in value. On Sunday, it was within touching distance of $12,000 for the first time, at $11,858, pushing its market cap to an impressive $198.2 billion.
Yet, despite this, the number of naysayers against the digital currency are continuing to state that it is in a bubble. Regardless of this, however, Mook doesn’t believe that the possibility of a bubble is a bad thing, adding:
Every time that wallet breaks, the adoption bubble will burst. Every time the software is improved, the bubble will resume. Value will not be permanently lost. That is the nature of the blockchain.
As a result, he believes that as the potentials of the blockchain are further realised, people will be more than likely prefer it compared to trusted third parties.
Not only that, but as bitcoin’s value continues to gain in price, the use of third party systems will slowly decline. In turn, this will further add to the digital currency and the blockchain’s value, with Mook stating that:
As these become more recognized and understood, the value of bitcoin will increase radically from today’s valuations. I predicted $700,000 for bitcoin in 2013. I stand by that prediction for these reasons.
The digital currency’s value is rising due to the announcement that the Chicago Mercantile Exchange (CME) Group are to launch their bitcoin futures on the 18th December, after receiving approval from the U.S. Commodities and Futures Trading Commission (CFTC). At the beginning of the month, Terry Duffy, CME Chairman and CEO, revealed:
We are pleased to bring bitcoin futures to market after working closely with the CFTC and market participants to design a regulated offering that will provide investors with transparency, price discovery, and risk transfer capabilities.
Such is the projected good future for the digital currency that some see its value rising even higher than it currently stands at $11,440, according to CoinMarketCap. One individual is billionaire investor and hedge fund manager, Mike Novogratz who is of the opinion that it could ‘easily‘ reach $40,000 by the end of 2018.