Blockstream CEO criticised central bank digital currencies
People are better off utilising fiat currencies or stablecoins rather than holding central bank digital currencies (CBDCs), according to the chief executive officer of the blockchain technology startup Blockstream.
Adam Back informs his 487,800 Twitter followers that CBDCs enable authorities to confiscate and control an individual’s money.
Regarding Bitcoin (BTC), Back predicts that the Lindy effect would ultimately influence the market capitalization of the king cryptocurrency, paving the way for Bitcoin to displace gold as one of the premier store-of-value commodities.
Bitcoin is gradually overtaking gold. As trust in the Lindy effect increases, adoption and awareness increase. Since the younger generation inherits assets and money, they are more likely to reallocate to BTC than gold, as more financial institutions accept Bitcoin.
The Lindy effect suggests that the longer a technology has been, the more likely it will continue to exist in the future.
The CEO predicted last month that Bitcoin’s price would fluctuate wildly and reach $100,000 this year due to his belief that the U.S. Federal Reserve will likely alter its restrictive monetary policies by the end of 2022.
“Everyone has a favourite macro perspective. My prediction: stock market + US election season, moral hazard swings into high gear, quantitative easing ramps up, rates drop again, and the money printer goes into overdrive. So once DeFi (decentralised finance) is flushed, the interest rate overhang dissipates, and Bitcoin (BTC) decorrelate.
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