Chinese investor Chandler Guo, who has invested in various bitcoin and Ethereum Classic startups including major bitcoin mining pool BW.com, stated at the Annual Meeting of the New Champions in Tianjin China that the world GDP will be based on bitcoin.
Since the introduction of bitcoin in early 2009, the global financial system and market have changed drastically. Banks have begun to implement negative interest rates, countries like India and China have started to impose strict regulations on asset management and the value of cash is beginning to fade away as central banks and governments are looking into the development of digital currencies.
Guo states that like any technology or product, the world’s financial market and monetary systems are going through a major change. Existing financial networks, platforms and services are being replaced by financial technologies or fintech, and non-bank service providers have gained enough market share to challenge dominant organizations and institutions.
“This idea (current global financial and monetary systems) will die,” Guo explains. “Revolution means when this idea comes out to the world, it already released a monster. The monster (bitcoin) grows up, bigger and bigger, no person can control that.”
Essentially, Guo believes that financial technologies like bitcoin will trigger a revolution within the global financial market. As Guo notes, the existing financial industry and financial institutions cannot cross that border of consumer adoption and technological advancement, unlike cryptocurrencies like bitcoin.
Like any technology, the growth rate of bitcoin is virtually impossible to predict or presume. The market cap of bitcoin is currently closing in on US$12 billion and in a few years when bitcoin becomes the basis of the world GDP like Guo envisions, bitcoin will most likely reach a market cap of trillions of dollars.
“Internet can cross the border. But [traditional] finance cannot cross the border. Bitcoin and blockchain can easily cross the border,” Guo added.
As global economic and financial struggles intensify, as more countries begin to impose tighter and impractical regulatory frameworks for the financial industry, an increasing number of individuals, investors and traders will shift towards bitcoin as a global safe haven asset.
If and when this happens, as Guo states, a revolution will occur. The global financial market will undergo a major overhaul of their systems and consumers will move away from the impractical, inefficient and monopolized realm of finance to bitcoin, which grants complete financial control, privacy, and freedom to its users.
“It starts by a little bit but change will be very fast,” said Guo. “Not five years, I think three years.”
When Guo was further asked about global market instability amidst Brexit among other international affairs, he further emphasized and he only considers and acknowledges the mathematics behind bitcoin and other financial technologies.
Similar to Guo, more people are becoming more skeptical of the government and existing banking systems. As this skepticism develops, Guo believes bitcoin will lead mainstream adoption and eventually be the helm of the global financial market.
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