March 28, 2024

Vitalik Buterin: "Bitcoin and altcoins are unlikely to be able to replace the national currency"

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Vitalik Buterin: “Bitcoin and altcoins are unlikely to replace the state currency”

The Ethereum co-founder believes that government currencies will remain the most dominant form of finance, and digital assets are unlikely to become a full-fledged replacement.

Against the backdrop of a decline in the cryptocurrency market andpanic sentiment, Vitalik Buterin announced that digital assets have no chance of gaining superiority over fiat currencies, despite negative trends in the global economy, Reuters reports. These words contradict the opinion of analysts who believe that currencies such as the dollar and euro may lose their purchasing power. Investors are turning their attention to alternative assets, including cryptocurrencies, to preserve their capital.

“A scenario in which Bitcoin and altcoins dominate traditional money is unlikely. I don’t expect cryptocurrencies to take over the world,” said Vitalik Buterin.

Back in 2018, co-founderEthereum gave credit to fiat currencies for demonstrating stability over the past few decades. According to him, monetary policy has a complex structure, so it is impossible to “destroy” traditional money without understanding the principles of its operation.

Last year he expressed a similar opinionformer Greek finance minister Yanis Varoufakis. He argued that if Bitcoin replaced government currencies, it would be a real disaster. The main reason this shouldn't happen is because of its limited supply. If an emergency occurs, such as a pandemic, the supply of Bitcoin cannot be increased because it is already fixed. Whereas in the case of regular money, governments can increase the money supply.

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In May the founder of the secondcryptocurrencies&nbsp;wrote that due to the fall of the cryptocurrency market, he can no longer be called a billionaire. That same month, Buterin published a series of tweets in which he told followers what irked him most about the cryptocurrency industry.