British economic and financial historian, Niall Ferguson believes Bitcoin (BTC) could be the potential option for digital gold as per a blockchain magazine Breaker Mag.
Ferguson who is a world-famous historian and author of fourteen books claimed Bitcoin to be a currency in a very limited sense. He stated that the oldest form of cryptocurrency was incapable of being money due to its massive volatility when it comes to being used as a mode of payment.
Ferguson reiterated on the fact that in the near future, Bitcoin would mostly be used as a type of insurance as it is an asset that is difficult to confiscate. Anyone can have access to it with the help of private keys as it happens in the case of the European wealthy which is used to store precious possessions.
Though Ferguson believes that the future money would be digital, he is skeptical about stablecoins, which are primarily digital currencies and are designed to provide minimum volatility and pegged to fiat currencies, algorithms or commodities.
“Stable coin” is a term used in cryptocurrency to describe cryptocurrencies meant to hold stable values. There are a number of stable coins in circulation today. Each stable coin has a unique set of mechanisms, but they all generally work the same way: They hold collateral of some type and manage the supply to help incentivize the market to trade the coin for no more or less than $1.
In recent times, fiat currencies have performed very well when it comes to inflation. Bitcoin is unique in itself and is not closely related to other asset classes.
Ferguson firmly believes that in future the global community would develop into a universal payment system that treats everyone equally. He expressed his concerns over huge centralized entities that could have upper edges in gaining control over customer transactions:
Previously, Mike Novogratz who is the former Goldman Sachs partner and founder of crypto merchant bank Galaxy Digital claimed that Bitcoin would become a digital gold and would be sovereign money in the near future.