The executive said that the first cryptocurrency on the market has never failed and will continue to thrive. Almost all financial institutions will process cryptocurrency transactions, while funds will hold crypto assets.
Coinbase CEO Brian Armstrong addressed the progress of the cryptocurrency industry so far this decade in a report. In discussing the subject, he said that an article on technology in the last ten years by Fred Wilson inspired him.
Armstrong began his report by saying that the pioneering cryptocurrency has not failed a single time. Some people doubt that Bitcoin will survive, but the executive thinks that the digital currency will thrive.
He noted that more than 379 articles prematurely declared the end of Bitcoin, but it managed to survive against all odds. In that way, it became the highest-performing asset of the decade, proving his detractors to be wrong. Armstrong said that people have learned that most great breakthroughs are ideas dismissed and ridiculed at first.
Other Important Aspects of the Cryptocurrency Space
Additionally, the summary mentions the competition that arose with creating a growing number of crypto assets. That situation fueled innovation within the industry and attracted the attention of investors.
Although there were bubbles and drops in the prices of cryptocurrencies, the ecosystem continued to grow. Besides, the creation of stablecoins increased to combat the volatility in the price of crypto assets.
However, the adoption of the applications for actual use cases took longer than expected. It was necessary to wait until decentralized finance apps (DeFi) appeared.
Regarding the boom in Initial Coin Offerings (ICOs), Armstrong said they managed to raise a considerable amount of money. However, several of them did not achieve their purpose of creating an actual product. On the other hand, exchanges became one of the best company models, increasing the interest from retail and institutional investors.
Financial Institutions Will Trade Cryptocurrencies
Armstrong believes that almost all financial institutions will process some cryptocurrency transactions. Additionally, he believes that most funds will hold crypto assets due to uncorrelated returns and upside potential.
He said that institutions hold about 90% of the money in the world. For that reason, he predicted that this could generate strong demand for crypto assets.
Regarding regulations, the executive commented that several exchanges had adopted them to ensure long-term adoption. For a decade, the debate on the status of cryptocurrencies has been around.
What Will Happen to the Price of Bitcoin
In his report, Armstrong specified that his friends Olaf Carlson-Wee and Balaji Srinivasan predict a USD 200,000 price per Bitcoin. That suggests that cryptocurrencies will help the number of billionaires in the world grow exponentially.
He believes that many people will invest in the technology, and there will be a lot of philanthropy within the ecosystem. Likewise, he asserted that the number of holders and users of cryptocurrencies would continue to increase, moving the needle on economic freedom.
Armstrong predicted that accelerated adoption would make the blockchain more scalable and private. He concluded that there would be around 1 billion users by the end of the decade.
By Alexander Salazar
