Bitcoin’s (BTC) recent price drop hasn’t dimmed some analysts’ enthusiasm for the world’s largest cryptocurrency.
According to a new survey conducted by personal finance comparison site Finder.com, half of those polled predict Bitcoin will exceed fiat money, or central bank-issued currencies, by the year 2040.
While the sample size is small — the analysis is based on a panel of 42 cryptocurrency specialists, according to Finder.com — it demonstrates that Bitcoin’s price drop from its all-time high in April had little effect on crypto professionals’ long-term outlook.
According to the survey, 50 percent of respondents believe that Bitcoin would overtake world banking in the next 20 years, a phenomenon known as hyperbitcoinization. One-third of those polled believe it will happen before 2035, while 44% believe Bitcoin will never be the dominant form of global banking.
According to the majority of respondents, El Salvador’s decision to recognize Bitcoin as legal cash is just the beginning of poor countries’ adoption of BTC as their principal currency. Within the next ten years, 33% of crypto specialists believe the original cryptocurrency would become the most widespread form of money in developing countries. Another 21% feel that adoption will occur, but that it will take at least ten years.
The environmental risks surrounding Bitcoin mining are something that all of the panelists agree on. The green energy issue is expected to continue to damage Bitcoin, with 31% saying that energy use would have a big impact on the price.
Despite the possible pricing implications, more than half of the experts believe that switching to an environmentally friendly Proof-of-Stake model is the answer, with 66 percent of respondents calling the proof-of-work model a “necessary evil.”
Kraken Head of Growth Dan Held told us in an exclusive interview that Bitcoin has a high potential of becoming the world’s reserve currency, but it will take at least ten years. According to him, Bitcoin is mostly useful in developing nations for escaping censorship, while Bitcoin is appealing in the Western world as a hedge against central bank money printing.