Today we saw bitcoin hit an all time high of $23k while its traditional counterparts are suffering a decline in value. Historically, when someone desires financial stability, they naturally go for safe investment is, such as gold, stocks, real estate. But with the outbreak of the corona virus pandemic we have experienced a shift in global economy, countries are facing inflation. As a result many individuals are beginning to see Bitcoin as a safer investment than its counterparts. Countries are slowly adopting crypto as a means of payment. Will bitcoin eventually dominate the world economy and replace traditional currencies?
In my opinion, traditional fiat currencies will die in this decade. They will be replaced by new central bank digital currencies (CBDCs).
What's next for Bitcoin? How will CBDC and Bitcoin interact with each other? Will Bitcoin become the world's new reserve currency?
I don't know the answers to these questions yet.
Perhaps Bitcoin has a very bright future, or maybe vice versa - a surge of interest in it from institutional investors is associated with the fact that 2020 and 2021 are a transition period from the old financial system to the new financial system.