Bitcoin, Ethereum and other cryptocurrencies have long had a difficult time in the financial industry and have been mostly critically eyed by large companies. Thus, BTC has been associated by many first of all with criminal activities, such as trading on the darknet. Others criticized Bitcoin as a pure speculative object with extreme price volatility, which is not suitable as an investment for institutional investors.
But at least since the bull cycle 2020/2021, Bitcoin & Co.have finally managed to shed this bad image and are considered by more and more investors as a serious investment instrument, which is quite on a par with the purchase of shares or investments in gold and other investments.
Tesla-Investment milestone for the crypto market
Bitcoin has become socially acceptable in corporate circles due to the entry of well-known corporations. In addition to MicroStrategy or Square, Elon Musk has made sure that BTC is now viewed differently with the 1.5 billion dollar investment in Bitcoin. 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 reallocate its assets in parts of fiat currencies such as dollars into BTC, why wouldn’t other companies do the same?
Apparently, this argument seems to be true. Because a new study by the renowned consulting firm Deloitte certifies Bitcoin & amp; Co.an amazingly positive testimony among executives of companies. This comes from Deloitte’s 2021 Global Blockchain Survey, which examined the potential of blockchain applications and digital currencies such as Bitcoin for use in companies.
Digital currencies “very important”in the next 2 years
The study concludes that 80 percent of the 1,280 executives surveyed from the 10 countries Brazil, China, Germany, Hong Kong, Japan, Singapore, South Africa, the United Arab Emirates, the United Kingdom and the United States regard digital assets such as Bitcoin as “very important” or “somewhat important” for their respective industry. The next 24 months were used as the time horizon, in which Bitcoin and Co already play a role for the companies.
Blockchain is considered to be equally important as a technology for use in companies. To find application scenarios for the technology on which Bitcoin, Ethereum and Co are based, the executives consider very important. Thus, more than 75 percent of them say that they miss an opportunity unless they succeed in integrating blockchain technology into business processes. The study did not ask any laypersons who had never become familiar with the technical complexity of blockchains. The answers come from people who, according to Deloitte, have at least a basic knowledge of the technology and operation of Bitcoin and other digital currencies.
Bitcoin more than an alternative to dollars
However, another result of the study is especially noteworthy. It was also examined to what extent Bitcoin & Co can compete with the US dollar, euro and other fiat currencies in the future. This aspect is often one of the most important for the cryptocurrency community why they chose to buy Bitcoin or trade other cryptocurrencies.
Because Bitcoin, in the opinion of supporters, should not only be an alternative to fiat money, which exists in parallel, but at best completely replace it. Their argument is that dollars & amp; Co.are centrally managed by the banks and states, come into circulation in an inflationary manner and cannot survive in the long term. Because they contradict the decentralized approach of Bitcoin and the power of the many in the blockchain. In summary, fiat currencies and the banking system are a thorn in the side of loyal bitcoiners who stand for a worldview that they would like to overcome.
But so far, Bitcoin & Co.have only managed to establish itself as a real currency in addition to the function as a store of value. The world’s most common payment method continues to be fiat money – whether in cash or on a credit card. However, recently caused a stir with the announcement that the small Central American country of El Salvador officially accepts Bitcoin as a currency. BTC is thus the second state currency next to the dollar.
76 Percent Expect BTC & amp; Co. to Completely Replace Dollars
The Deloitte study clearly shows that a profound change could apparently take place here in the next few years, making Bitcoin far more than a limited means of payment. For example, 76 percent of the company executives surveyed are convinced that digital currencies can completely displace dollars, euros & Co.in the next five to ten years. According to it, Bitcoin was able to rise to the world currency and replace the dollar as a world reserve currency.
The respondents justify their extremely bullish statement about Bitcoin & Co.exactly. According to them, they see some clear advantages over fiat money in digital currencies. Through their digital structure, Bitcoin & Co.could enable more efficient and faster payment methods and reduce the bureaucratic effort compared to the use of fiat currencies. But the respondents also see clear reasons for using digital money in terms of transparency and building trust with customers. Because blockchain technology ensures that every transaction is exactly traceable and transactions are stored immutable and thus tamper-proof.
Security and regulation slow down Bitcoin
At least that’s true in theory. From the point of view of the respondents, blockchain technology and cryptocurrencies also have room for improvement. Cybersecurity is an important topic in particular. Because the procedures only work safely as long as there are no hacker attacks and criminals can manipulate transactions on blockchains, e.g. through 51 percent attacks. For example, 71 percent of the executives surveyed say that insufficient security standards have so far hindered the mass adaptation of Bitcoin & Co.
The respondents also see regulatory uncertainties as a further” brake ” for the rapid Bitcoin adaptation in corporate circles. Because Bitcoin & Co.are treated very differently by governments and regulators worldwide. From acceptance as a state currency to a complete ban, the range of how digital currencies are handled extends. 73 Percent of managers still see deficits here that need to be eliminated in order to clear the way and completely replace fiat money. A further 65 percent of respondents also cite an even better financial structure in the entire crypto market, which is currently still an obstacle.
Change to digital currencies has no alternative
Despite these justifiable criticisms of digital currencies, the advantages of Bitcoin & Co are significantly more important for the executives in their assessment. Deloitte, a consultancy, concludes: “The seismic changes we are seeing will affect any organisation using a bank in the near and distant future. The future is happening right now“. In a further passage, Deloitte also explains: “Banks – and basically all other industries-have no choice but to welcome change with open arms.“