Ethereum co-founder Vitalik Buterin believes that digital assets do not have a chance to steal supremacy from traditional currencies.

Crypto will not ‘take over the world’

The global economy has not been in its best shape in recent months. Considering the ever-increasing prices of everyday supplies and services and the ongoing war between Russia and Ukraine, the future outlook looks even bleaker.

These negative trends led many experts to assume that national currencies like the dollar, euro, and others might lose some of their purchasing power. At the same time, people may shift their focus to alternative assets, such as cryptocurrencies, to preserve their wealth.

According to Russian-born programmer and one of the founders of Ethereum, Vitalik Buterin, a scenario in which bitcoin and altcoins become more dominant than traditional currencies is unlikely:

“I don’t expect crypto to take over the world. It’s about crypto, digital and governments.”

Before the COVID-19 pandemic, Buterin praised fiat money for having done a “reasonably good job of being stable” over the past few decades. He opined that monetary policy is a complicated matter, hinting that one should not criticize traditional currencies without first understanding how they work.

Vitalik Buterin, Source: Business Insider

What if Bitcoin manages to replace Fiat?

Last summer, former Greek Finance Minister Yanis Varoufakis argued that replacing national currencies with BTC could be a “catastrophic” move. In his opinion, the main reason this should not happen is because of the limited supply of the cryptocurrency:

“We would all be in a very desperate situation right now. What will happen when we have a pandemic and you need to increase the money supply? You can’t increase the supply of bitcoin because it’s a fixed supply.”

On the other hand, numerous experts believe that the maximum BTC supply of 21 million coins that has ever existed is not a drawback. The dollar, euro, and other fiat currencies have been devalued in recent months due to endless printing from central banks.

Not too long ago, investment manager Van Eck, a firm known for its bullish stance on BTC, forecast a very bullish future for its price if it succeeds in replacing traditional currencies as a global reserve asset. The firm claimed that Bitcoin could start trading between $1,300,000 and $4,800,000, while gold could reach $31,000 per ounce.

Featured image courtesy of Arover

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