Twitter CEO says bitcoin will become the internet’s single global currency in 10 years
Jack Dorsey believes bitcoin will overshadow the dollar and the takeover may occur sooner than expected.
Although the cryptocurrency craze caught fire in the last few months, the industry has already been a decade in the making. Now, Twitter chief executive Jack Dorsey claims that the world’s most popular digital currency, bitcoin, is poised to surpass the dollar and become the leading international currency for the virtual world.
In an interview with The Times, the tech entrepreneur said that this changing of the guard would occur “probably over ten years” but has the potential to happen even faster.
“The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin,” Dorsey said during the interview.
Social media and trading apps
Dorsey runs global social media platform Twitter and financial services and payments company Square.
Twitter is reportedly preparing to prohibit most cryptocurrency advertisements, according to Sky News. This follows similar moves made by Facebook and Google, restricting ads pertaining to initial coin offerings (ICOs).
Square recently integrated the ability to buy and sell bitcoin through its Cash App. Customers are limited to $10,000 in bitcoin buys per week, although there’s no amount limits imposed for what can be sold. A recent survey found that 60% of business owners with $100,000 in annual revenue would take bitcoin as payment.
Despite their sudden rise in popularity and constant discourse on social media channels and online forums, the overwhelming majority of Americans do not actually own any digital currency, according to a seperate survey.
The anonymity of bitcoin and other digital currencies has made the industry a somewhat desirable stomping ground for illegal activities and trading, cybercriminals, scammers, tax evaders and sanctions avoidance.
In February, the World Gold Council refuted remarks from social commentators that cryptocurrencies could replace gold as a leading global asset, despite acknowledging bitcoin’s “parabolic price rise” in 2017.
Dorsey does accept that bitcoin “does not have the capabilities right now to become an effective currency”.
“It’s slow and it’s costly, but as more and more people have it, those things go away. There are newer technologies that build off of blockchain and make it more approachable,” he said.
Problems and potential solutions
A common complaint against bitcoin is the extraordinarily high transaction fees and processing times.
However, the median transaction fee for bitcoin trades fell to a 10-month low of $0.52 towards the end of February, after peaking at an all-time high of $34.09 in late December last year. In response, a raft of popular exchanges trimmed their fees for bitcoin withdrawals, while blockchain congestion has also lessened.
Dorsey is a bitcoin investor and was also recently revealed as a financial contributor to Lightning Labs, the developer of the Lightning Network, which offers a potential solution to bitcoin’s scalability issues.
The Lightning Network is a decentralized system which utilizes smart contracts in the blockchain to enable instant payments across a large group. This network is capable of millions to billions of transactions per second. This speed and scalability is possible because the Lightning Network doesn’t create on-blockchain transactions for individual payments. However, the smart contracts can be enforced on-blockchain.
In late January, a Reddit user reportedly purchased a AR300M VPN Router, which he/she acquired using the Lightning Network’s mainnet blockchain. This was the first real-world transaction using the off-chain solution.
This week, cryptocurrency platform Stellar (XLM) expounded on plans to incorporate the high-volume micropayments Lightning Network, revealing technical specifications and a go-live date – December 1, 2018.
You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.
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