On Wednesday, January 17, Bitcoin reached its 2018 low of $9,199, according to Coindesk. At the moment, the whole crypto market is suffering from a devastating correction, which crashed upon the market a day before. However, just last week bitcoin was balancing between the rates of $13,000 and $14,000.
Nevertheless, there is still a lot of rivalry in the world finance market, stirred up by cyber money. There were lots of claims that with time bitcoin will substitute fiat money, the dollar in particular, or even gold, but not everyone agrees with such adoption of BTC.
Kashkari’s View On BTC
One of these people is Neel Kashkari, the Minneapolis Federal President. Last week he claimed that bitcoin could not threaten the American dollar – end of story.
"I don't see bitcoin as a credible competitor to the dollar in the United States of America, and the reason is the barrier of entry to you creating your own coin and me creating my own virtual currency... is zero," said Kashkari.
Indeed, BTC has chances to substitute, for example, gold. In case bitcoin replaces gold entirely, one coin would be worth of $357,000, according to CNBC. But if it displaces only 5% of gold, which may occur in five years, one BTC unit will be worth of $25,000.
Neel Kaskari (Image Source: Flickr)
Meanwhile, Kashkari also added that nowadays a plethora of novel currencies are being developed daily, and bitcoin has lots of competitors in the field – alternative coins. So there is still a high probability of inflation in the area as no one knows which digital currency to trust. Kashkari also said that there still are going to take place lots of changes before people understand what’s what.
Notwithstanding the above, the US Federal Reserve placeman conceded that in the perspectives of both bitcoin and altcoins will get on a grander scale in the world with time. However, at the moment the functionality of crypto brethren remains undefined.
The Shaking Crypto Market
In the meantime, the whole crypto market is experiencing a considerable decline. For two days the massive majority of top-100 cryptocurrencies, listed on the Coinmarketcap.com, remains red colored, meaning, all of them are plummeting non-stop. Currently, the total coin market cap makes up $461.5 billion. That’s 1.5 times smaller than it was on January 15. Will the market and bitcoin, mainly, survive, no one knows, but the fact is that bitcoin is volatile at its core.