Bitcoin might not result to the end of the traditional banking and currency systems, according to the research director at Coin Center, Peter Van Valkenburgh. However, its usage might vary depending on one’s location.
Van Valkenburgh said in a May 28, 2021 interview with the Washington Journal on C-Span:
“I think there are folks in the Bitcoin community who probably make too many noises about how Bitcoin is going to dominate all economic systems and nobody will be using dollars anymore, and nobody will be using banks anymore, and I think that’s actually a little foolhardy.
The fact of the matter is that there are going to be times when a Bitcoin transaction is what you want. Definitely, if you are in an oppressive state like Nigeria or Belarus you might find it more useful to use Bitcoin. In the U.S., we have a pretty stable banking system. We have the rule of law, we have a pretty well-functioning government.”
How BTC is used depends on the users’ geographic location. In some countries, Bitcoin is seen as more of a speculative asset, which is used for trading and investing.
Bitcoin may also serve as a vehicle for more freedom in the other regions. That will offer users more flexibility and quicker payments, as well as a way out of inflationary troubles when they are compared to the traditional currency and finance systems. Van Valkenburgh explained:
“Generally speaking, here in the U.S., you’ll probably still use credit cards and Venmo and things like that, but maybe you’ll want to buy some Bitcoin because it can be a way to balance your investment portfolio against the threat of inflation.”
He was speaking subsequently referring to the similarity to gold in terms of its limited supply. He also noted:
“So maybe, you know, as part of a balanced portfolio that includes other safer investments, you might have a little bit of Bitcoin to hedge against inflation.”