Bitcoin, Ethereum and other cryptocurrencies have long had a difficult time in the financial sector and were largely critical of large companies. For example, BTC was primarily involved in criminal activities such as the Darknet deal. Others criticized Bitcoin as a pure speculative target with extreme price volatility unsuitable as an investment for institutional investors.
But no later than after the bull period 2020/2021, Bitcoin & Co. has finally managed to get rid of this bad picture and is seen by more and more investors as a serious investment tool on an equal footing; Purchase of shares or investments in gold and other assets.
Tesla’s investment milestone in the cryptographic market
Bitcoin has become marketable with the advent of well-known companies in the business community. In addition to MicroStrategy or Square, Elon Musk made a $ 1.5 billion investment in Bitcoin to ensure that BTC is now viewed differently. After all, Musk is known as a visionary strategist and Tesla is one of the most successful companies in recent years. If Tesla “dares” to transfer its funds in parts of fiat currencies, such as dollars, to BTC, why shouldn’t other companies do the same?
Apparently, this argument seems to turn out to be true. Because a new study by the famous consulting company Deloitte confirms Bitcoin & Co.’s amazingly positive report among the company’s executives. This is coming Deloitte 2021 Global Blockchain Survey which explored the potential of blockchain applications and digital currencies such as Bitcoin for business use.
Digital currencies are “very important” over the next two years
According to the survey, 80 percent of 1,280 executives from 10 countries in Brazil, China, Germany, Hong Kong, Japan, Singapore, South Africa, the United Arab Emirates, the United Kingdom and the United States consider digital assets such as Bitcoin to be “very important” or “slightly important” to their industry . The next 24 months, when Bitcoin and Co. already have a role for the companies, were used as the time horizon.
The block chain as a technology for use in companies is considered equally important. Managers attach great importance to finding application scenarios for the technology on which Bitcoin, Ethereum, and Co. are based. More than 75 percent of them say they will lose an opportunity if they do not integrate blockchain technology into company processes. The surveys did not ask laymen who had never been acquainted with the technical complexity of block chains. The answers come from people who, according to Deloitte, have at least a basic understanding of technology and how Bitcoin and other digital currencies work.
Bitcoin is more than an alternative to dollars
However, another result of the study is particularly noteworthy. It also examined the extent to which Bitcoin & Co could compete with the U.S. dollar, euro and other fiat currencies in the future. It is this aspect that is often one of the main reasons why the cryptocurrency fan chooses Buying Bitcoin or have decided to trade with other cryptocurrencies.
Because followers believe that Bitcoin should not only be an alternative to the co-existing fiat money, but at best replace it altogether. They argue that the dollar and the Co are managed centrally by banks and governments, that they circumvent inflation, and that they cannot survive in the long run. Because they are at odds with Bitcoin’s decentralized approach and the power of many in the block chain. In summary, fiat currencies and the banking system are a thorn in with loyal Bitcoiners representing the worldview they would like to win.
But so far Bitcoin & Co. has only succeeded in consolidating its position as a real currency in addition to maintaining value. The most common method of payment in the world is still fiat money – either by cash or credit card. However, a recent announcement that a small Central American country The El Salvador Bitcoin was officially adopted as the currency. This makes the BTC another national currency next to the dollar.
76 percent expect BTC & Co to fully replace the dollar
The Deloitte study clearly shows that a fundamental change may take place here in the next few years, making Bitcoin much more than a payment instrument with limited availability. 76% of company executives surveyed are convinced that digital currencies could completely displace dollars, euros and the like over the next 5 to 10 years. Thus, Bitcoin could become a world currency and replace the dollar as a world reserve currency.
Defendants justify their very uplifting statement about Bitcoin & Co. Thus, they see clear advantages in digital currencies over fiat money. Bitcoin & Co. could enable more efficient and faster payment channels through its digital structure and reduce bureaucratic work compared to the use of fiat currencies. But respondents also see clear reasons for using digital money to build transparency and trust. Because blockchain technology ensures that every transaction is exactly traceable and that transactions are stored unchanged and thus protected.
Safety and regulation are slowing down Bitcoin
At least in theory, that’s true. Because from the respondents ’perspective, blockchain technology and cryptocurrencies also have room for improvement. Cyber security is a particularly important issue. Because the procedures work safely only as long as there are no hacker attacks and criminals z. B. can manipulate block chain events through 51 percent attacks. 71 percent of executives surveyed state that inadequate safety standards have prevented Bitcoin & Co from mass-adapting to date.
Respondents also see regulatory uncertainty as an additional brake on Bitcoin’s rapid adaptation in business circles. Because governments and regulators around the world treat Bitcoin & Co. very differently. The treatment of digital currencies ranges from the acceptance of the national currency to a total ban. 73 percent of leaders still see deficits here that need to be closed in order for the road to be cleared and the fiat money to be completely replaced. Another 65% of those interviewed also mention the overall financial structure of the cryptographic market, which is still in need of improvement, which is currently still an obstacle.
There is no alternative to the transition to digital currencies
Despite the seemingly justified criticism of digital currencies, the main intention of the executives is that the interests of Bitcoin & Co are much more significant in their assessment. Consulting firm Deloitte concludes, “The seismic changes we observe will affect every organization that uses the bank in the near future. The future is happening right now. “In the second paragraph, Deloitte also explains:” Banks – and basically all other sectors – have no choice but to embrace change with open arms. “