British Economic Historian: Bitcoin is The Financial System of The Future

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The researchers warned the central bank that the new financial system brought about by the cryptocurrency revolution will exceed the existing systems they are responsible for maintaining. Recently, British economic historian and writer Niall Ferguson on a seminar told the Bank of England that Bitcoin is the financial system of the future.

The future of finance

Neil Ferguson is a famous historian and critic. He is also the author of fifteen books including The Rise of Money and The House of Rothschild. On Tuesday, he organized a seminar for the Bank of England to discuss the financial crisis in 2008 and the response of countries around the world. In the summary of this seminar, he mentioned that Bitcoin is one of the major challenges facing the current legal currency-based financial system.

Ferguson said:

“The financial system of today is not fundamentally that different than the financial system of the pre-crisis period, except that big banks are better capitalized. I don’t think much else is really different. The novelties, the things that will really matter ten years hence are still relatively small in scale. Whether its Bitcoin or cryptocurrency generally or the massive revolution in online payments that is being achieved by the big Chinese tech companies, that’s the financial system of the future, and it is still small enough not to be systemically important in 2018. In short, I am left feeling we are only a matter of time before the next crisis.”

Constantly emerging ICO

It is not surprising that Ferguson made this remark. As early as December 2017, he wrote:

“At some point, no doubt, regulatory changes in the US will deflate the current Bitcoin bubble. But they will not halt, much less undo, this financial revolution. Think about it this way. The maximum number of Bitcoins that can be created is 21m. The number of millionaires in the world, according to Credit Suisse, is 36m. Their total wealth is $128.7 trillion. If millionaires collectively decided to hold just 1% of their wealth as Bitcoin, the price would be not $15,000 but north of $60,000. If they raised that to 5%, the right price for Bitcoin would be above $300,000. I am not saying this is certain to happen. I’m just saying my teenage son thinks it could.”

Since then, he has also talked about other aspects of the cryptocurrency market, such as the emerging ICO project. According to reports, Ferguson said last week that he hopes to get a bitcoin for every fake white paper in the past six months because there are too many fake white papers. He also said that if there is no supervision, then the fraudsters will quickly find their way.

Ferguson is not the only scholar concerned with whether Bitcoin’s development conforms to economic history. Last Monday, Professor Robert Shiller, who won the 2013 Nobel Prize in Economics and is known for the Case-Shiller Index, published an article about how people’s enthusiasm for reinvention of currency has inspired Bitcoin. The great charm.

Image via Unsplash


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