Bitcoin and other cryptocurrencies will never replace the U.S. dollar because they don’t pass muster for what a currency should be. That’s what John Williams, the likely next head of the New York Reserve, declared.
Williams, who’s the nominee to head the Federal Reserve Bank of New York, is currently the president of the Federal Reserve Bank of San Francisco. He said despite bitcoin’s mild price rally this week, the top cryptocurrency by market cap isn’t a store of value because of its erratic price swings and fixed supply of 20 million tokens.
“Cryptocurrency doesn’t pass the basic test of what a currency should be,” John Williams said April 20, as reported by CNBC.
“The setup or institutional arrangement around bitcoin and other cryptocurrencies [is problematic]. First of all, they have problems with fraud, problems with money-laundering, terror financing. There’s a lot of problems there.”
Williams said a currency such as the U.S. dollar should be something with a store of value, which he says bitcoin has not proven it can be. He said the volatile price fluctuations of cryptocurrencies make it difficult to use them to pay for an item.
Williams said bitcoin’s fixed supply of 20 million is also an issue, pointing out that the world’s central banks sometimes try to stabilize the economy by either increasing or decreasing the amount of cash circulating. But you can’t do that with bitcoin, Williams noted.
John Williams’ crypto-skepticism is obviously not shared by bitcoin bulls like Twitter billionaire Jack Dorsey, who predicts that bitcoin and cryptocurrencies will ultimately displace all other currencies.
Billionaire Jack Dorsey: Bitcoin Will Be World’s Single Currency
“The world ultimately will have a single currency, the Internet will have a single currency,” Dorsey told the Times of London in March 2018. “I personally believe that it will be bitcoin.”
Bitcoin billionaire Changpeng Zhao, the founder of top cryptocurrency exchange Binance, agrees. He says digital currencies are the unstoppable wave of the future. “I’m convinced 100 percent that crypto is the future,” Zhao said. “I just know it will happen.”
Similarly, tech billionaire Tim Draper, a venture capitalist and avowed cryptocurrency bull, has set a $250,000 bitcoin price target for 2022.
Billionaire Tim Draper Wore Bitcoin Tie And Nearly Broke The Internet: Sets $250,000 Bitcoin Price Target - https://t.co/jwkjImefG5— Inquisitr Lifestyle (@InquisitrLife) April 14, 2018
“I’m thinking $250,000 a bitcoin by 2022. Believe it!” Tim Draper declared. “They’re going to think you’re crazy, but believe it. It’s happening and it’s going to be awesome!”