Friday, October 7

Why the world will think of bitcoin and not dollars, according to Sánchez Smith

Key facts:
  • Economist Sánchez Smith says: “bitcoin is the new convention for measuring the value of things.”

  • It warns that bitcoin will be the currency that governs economic activity and the world’s store of value.

On November 17, Spanish economist Gael Sánchez Smith held a conference at LaBitConf on the global future of bitcoin (BTC). The financial expert warns that “we can begin to think in bitcoin, not fiat, not dollars, not euros”, due to the weight it has in the total wealth of the world.

Gael Sánchez Smith Explain that people invent conventions to measure things. It expresses that, just as we invented degrees to measure temperature or years, minutes and seconds for time, bitcoin is the new convention for measuring the value of things.

The economist believes that this is where the world is going and those who start to think about the value of things in bitcoin before will be better prepared for the future. Credit this to the fact that cryptocurrency in just 13 years of life is already used by around 2-3% of the world’s population.

With this in mind, consider that the world will go through an evolution to implement bitcoin as the numerator of economic and commercial activity. It predicts that it will first function as a collectible investment mode, then as a store of value, and lastly, it will be the global financial asset.

“It is a matter of time before we all migrate to this new unit of value,” says Gael.

Making a comparison with the printing of banknotes of fiat currencies, such as the dollar or the euro, he states that bitcoin has no limitations to multiply. Gael Sánchez Smith explains that cryptocurrency can be mined in a decentralized and self-sovereign way at the global level, that is, it does not depend on the decision of a government.

Bitcoin has a very clear expectation. It has an offer function that is predefined in the code that no one can alter, no politician, no corporation, no bank. (…) For me, this is the main virtue of this coin and for which I dedicate my time and energy to it.

Gael Sánchez Smith, bitcoin economist.

Regarding other types of value reserves, the economist points out that gold represents 3% of the world’s total wealth, while bitcoin 0.1%. This suggests that the difference is not so great considering that gold is the asset with which its value has been preserved for centuries.

The world’s fortune in gold is being lost. Source: Youtube.

Gael Sánchez Smith shows a graph in which it is observed that the fortune in gold has suffered a decrease, unlike that saved in bitcoin, which does not stop increasing. Also, reflect that gold mining has a natural limit, while bitcoin mining does notas it depends on technological efforts.

Investment in bitcoin is growing and presents a promising future, believes Gael Sánchez Smith. Source: Youtube.

His conference partner, Juan Rodríguez, better known as “Papá Bitcoin”, adds that bitcoin can be accessed from anywhere. It can be bought and sold without limit of borders, even through instant international transfers, and it asks “how easy is it to exchange gold?”.

The price of bitcoin is very volatile and speculative, says Gael Sánchez Smith, unlike fiat currencies such as the dollar and euro. But, he warns that precisely the volatility that characterizes it now is risk and also opportunity. He jokes that in the future it will become boring because it will tend to stabilize, as the market seeks an equilibrium.

Bitcoin Dad, who is a bitcoin analyst and investor, taught at the conference how to invest in cryptocurrency to save and earn money. As CriptoNoticias reported yesterday, the expert revealed his strategies to buy bitcoin and almost triple his funds.