The year 2017 saw a cryptocurrency boom with over 1,000 different types of virtual currencies being traded on various exchanges worldwide.
But Silicon Valley entrepreneur Jack Dorsey boldly predicts that bitcoin will be the world’s single currency, “probably over ten years, but it could go faster”.
In an interview with The Times of London, the chief executive of social networking site Twitter and mobile payments service Square said: “The world ultimately will have a single currency; the internet will have a single currency. I personally believe that it will be bitcoin.”
Bitcoin has seen a correction of more than 50 percent from its record high of nearly US$20,000 in December.
As of 11:50 a.m. on March 22, Hong Kong time, the cryptocurrency was trading at US$9,012, after slumping to a low of US$7,377 on Sunday, according to crypto media Coindesk’s bitcoin price index.
Skeptics label bitcoin a scam and said it is doomed to crash to zero value. They also belittle its chances of becoming a legitimate medium of exchange, citing its high transaction cost, wild price volatility and slow settlement times.
Dorsey agrees that bitcoin “does not have the capabilities right now to become an effective currency”, adding that it is “slow and costly”.
But he thinks that “as more and more people have it, those things go away. There are newer technologies that build off of blockchain and make it more approachable.”
Dorsey has been investing in the cryptocurrency space. He reportedly participated in a US$2.5 million seed funding round for Lightning Labs, a startup that specializes in Lightning Network, a technology that can potentially make bitcoin cheaper and faster to use for transactions.
He said his mobile payment company Square will continue to support bitcoin. Since February, Square’s peer-to-peer payment app, Square Cash, has been offering its users access to direct bitcoin trading using whatever payment method they have attached to the app.
The app does not charge a fee for users’ bitcoin purchases, but the sale price is averaged from different exchanges, with a spread included, according to TechCrunch.
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