Buterin Doesn’t Think Crypto Can Replace Traditional Currencies

Buterin doesn’t think crypto can replace traditional currencies since the fiat ones will stay the most dominant form of finance so let’s read more about it in today’s latest Ethereum news.

The Ethereum co-founder Vitalik Buterin doesn’t think that digital assets have a chance of stealing the supremacy of traditional currencies. The global economy is not in its best shape in the past few months with the constant growing prices of everyday services and supplies with the war between Russia and Ukraine, now, the future looks even worse.

The negative trends caused most experts to assume that national currencies such as the dollar could lose some of the purchasing power and at the same time, some people might shift their focus towards alternative assets like crypto in order to preserve their wealth. According to Vitalik Buterin, this scenario where BTC becomes more dominant than traditional currencies is unlikely:

“I do not expect cryptocurrencies to take over the world. It’s about cryptos and digital and governments.”

Before the COVID-19 pandemic, Buterin praised fiat money for doing a reasonably good job of being stable in the past 10 years and opined that monetary policy is a complicated matter, saying that one should not blast traditional currencies without understanding how they work. Former minister of finance of Greece Yanis Varoufakis argued that BTC replacing traditional currencies would be a disaster.
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In his view, the main reason why this should not happen is because of the limited supply of crypto:

“We would all be now in very dire straights. What will happen when we have a pandemic and you need to increase the money supply? You cannot increase the supply of bitcoin because it is of fixed supply.”

On the other hand, plenty of experts believe Bitcoin’s maximum supply of 21 million coins that exist ever is not a drawback. The dollar, the EUR, and other fiat currencies started crashing in value in the past few months because of the infinite printing from the central banks. The investment manager VanEck also forecasted an optimistic future for the price if it replaces traditional currencies as a global reserve asset. The company claimed BTC could start trading between $1,300,000 and $4,800,000 while gold could reach $31,000 per ounce.