Andreas M Antonopoulos, the author of Mastering Bitcoin, spoke about the change that would ensue if Bitcoin starts to take over the financial world, in an interview for whatbitcoindid. He also spoke about the sectors it would affect if this were to happen in the future.
Andreas was asked about what would happen if a significant number of companies around the world started to move value into Bitcoin and not convert it back to local fiat currency. To this, he stated that irrespective of whether it is converted or not, the high volume of transactions would create more liquidity for the coin. He added that there would be an immediate impact on the volatility of the market as well when more people start to move money on a regular basis. He said:
“As it gets bigger it becomes harder and harder to budge and when people are making long-term decisions and using this as part of their business and embedding it into their accounting systems that changes the attitude towards this. it becomes less speculation and more medium of exchange”
This was followed by the author stating that the Bitcoin’s volatility is “one of those chicken-and-egg problems”. He explained that the volatility of Bitcoin is due to a lack of adoption and that the coin does not have enough adoption because of its volatility. He said:
“[…] people say well how could it ever be adopted if it’s volatile and that’s a bit like asking how could it ever be big if it’s small because volatility is a symptom of size so when it’s big it won’t have volatility and it will no longer be small as a result so so it’s a cyclical argument […]”
Furthermore, he spoke about Bitcoin taking over other areas like governments and more companies using Bitcoin. He stated that it has “very significant and steep implications”, mainly because Bitcoin was the next evolution of the internet. He added:
“I see this as part of the Internet […] It’s in the Internet plus the Internet of money, the Internet of value adding another dimension if you like to. So the Internet started with data then it became communication then it became socialization and now with with crypto I think it becomes the Internet of Commerce, the internet of value of the internet of money”
He further stated that it is impossible to predict the implication this would have on other sectors. Nevertheless, according to him, the implication would be bigger than the Industrial Revolution. He said that “it changes it doesn’t just change society changes humanity and that’s not because of Bitcoin, it’s because of a deeper transition to an information civilization”.
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