Bitcoin would be the ultimate store of value if it became a global legal tender. Argentine specialist Agustín Kassis believes that the price will rise as its adoption grows.
Herminio Fernández, founder and CEO of the Spanish payment app EurocoinPay, recently spoke about Bitcoin. He said its adoption as legal tender would make it the best store of value and money known.
The businessman pointed out there are at least USD 21 billion issued worldwide. He thinks Bitcoin would absorb all that fiat money if it became legal tender in all countries. Considering that the issuance of BTC has a limit of 21 million units, he estimates that 1 BTC would be worth USD 1 million.
Fernández believes that the price of Bitcoin would grow more if the cryptocurrency replaced the rest of the money. According to data from Statista, the US dollar occupies about 59% of world foreign exchange reserves. In other words, BTC should cover more than the remaining 40% with its global adoption as a currency.
The Spanish executive stressed that the value of Bitcoin would rise even more, counting the part that would capitalize on the gold market as a store of value. He considers it a safe and easy to transport cryptocurrency and an excellent unit of account and means of payment. That further expands its demand and can increase its adoption internationally, impacting the price.
The Increased Use of Bitcoin Drives Its Price Higher
The volatility in the price of Bitcoin has led different regulators to express their disagreement with making it a legal tender. The International Monetary Fund (IMF) and some central banks have said that several times.
However, some believe that the increased use of Bitcoin will decrease its volatility regardless of whether it is legal tender or not. That would cause its price to rise and balance out, a theory defended by Argentine cryptocurrency financial advisor Agustín Kassis.
Although Bitcoin is volatile in the short term, the specialist believes that this will not be the case within two or three years. He pointed out that no one buying and storing BTC for three years has lost value, so he considers it a long-term investment.
For that reason, Kassis argues that it is irrelevant that Bitcoin is legal tender. He said it is illegal to buy or save US dollars in Argentina. However, that does not prevent citizens from looking for ways to protect their money against constant inflation and the devaluation of the Argentine peso.
Accelerating Bitcoin Adoption May Boost Its Price
Economist Natalia Motyl said, from a liberal philosophical viewpoint, that she cannot force anyone to use a currency or cryptocurrency. She highlighted that the accelerated spontaneous adoption of Bitcoin would favor the stabilization of its price.
She commented that the use of Bitcoin globally and its adoption as legal tender in two countries mark the bullish dynamic in the coming months. Regardless of market volatility, the price of BTC could again exceed USD 40,000 before long.
The expert understands that Bitcoin will eventually reach a balance point far from its current volatility. She argues that price volatility would decrease if more people used it, so she believes countries should adopt it.
By Alexander Salazar