The chief executive officer of blockchain technology company Blockstream says people are better off using fiat currencies or stablecoins than holding central bank digital currencies (CBDCs).
Adam Back warns his 487,800 Twitter followers that CBDCs allow the powers that be to seize and control a person’s wealth.
“Bitcoin is apolitical, bearer, unseizable money, and that is what matters. Stablecoins [are greater than] CBDCs. In fact, CBDCs are systems of control, worse than bank accounts, certainly worse than paper cash, worse than stablecoins, and much worse than Bitcoin.”
As for Bitcoin (BTC), Back says that the Lindy effect will eventually have an impact on the market capitalization of the king crypto en route to displacing gold as one of the top store-of-value assets.
“Bitcoin is displacing gold over time. As Lindy effect builds confidence, adoption and awareness grows. More financial institutions offer Bitcoin, and as the younger generation inherits investments and wealth – they are more likely to reallocate to BTC than gold.”
The Lindy effect is theory suggesting that the longer a technology has been around, the longer it’s likely to exist in the future.
Last month, the CEO made a prediction that Bitcoin will whipsaw traders and climb to $100,000 this year as he believes the U.S. Federal Reserve will likely reverse its tight monetary policies before 2022 ends.
“Everyone has their pet macro-views. My guess: stock market + US election season, moral hazard kicks up, quantitative easing ramps up again, rates drop again, money printer goes into overdrive. So the interest rate overhang falls off, and BTC decorrelates somewhere along the way once DeFi (decentralized finance) flushed…
My permabull case for BTC/USD [is] $100,000 this year. Plus a US physical Bitcoin ETF chaser (GBTC upgrade + other) would create a nice whipsaw and probably trigger a big uncoupling and positive reflexivity into a blow off top next year.”
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Featured Image: Shutterstock/ValDan22/Natalia Siiatovskaia