COULD BITCOIN REPLACE THE DOLLAR?

Cryptocurrencies were the clear winner of 2017. Major cryptocurrencies like Bitcoin, Ethereum and Litecoin have massively increased in value over the year, effectively outperforming investments like stocks, commodities, and bonds. The incredible performance of cryptocurrencies has given many skeptical people in the finance and business community more confidence in decentralized currencies.

In September 2017, Christine Lagarde, the Managing Director of the International Monetary Fund, stated that cryptocurrencies could potentially replace most fiat currencies in the future. The biggest finance and technology corporations are mostly focusing on the technology that powers most cryptocurrencies, the blockchain. Some experts believe that the blockchain technology could greatly benefit the traditional finance system, without having to completely replace it with Bitcoin.

Finance experts suggest that decentralized currencies like Bitcoin and Ethereum could greatly help countries that are under sanctions like Cuba, Russia, Iran and North Korea to transfer wealth internationally without having to rely on banks and financial institutions. Analysts believe that cryptocurrencies could gradually replace fiat currencies like the US dollar and potentially replace financial institutions in the future.