Bitcoin and Litecoin prices will surge significantly and could even replace fiat currency

The 21st century has witnessed a lot of changes in the financial markets. However many, almost none of the changes, have been as momentous as the introduction of cryptocurrency. Cryptocurrency has become a threat to the regulated financial system in every facet leading to speculations on the probability of some cryptocurrencies such as Bitcoin replacing physical money and blockchain technology substituting central banks in the future.

Many financial analysts have singled out possibilities of revolutionary changes in the financial markets as a result of the emergence of virtual currency. Others argue that Bitcoin does not meet the merit for cash; therefore, the virtual currency cannot replace fiat currency.

Both arguments make sense in their respective rights and its good to measure both arguments to come to an all-inclusive decision. This can only be done by examining both the traditional financial systems and the emerging crypto blockchain technologies. By doing this, we will be able to tell the impact Bitcoin will have on the financial system and whether it can replace fiat currency.

How Does the Traditional Financial System Work?

The financial system is a web of financial institutions governments use to supply money in an economy. Treasury, Central banks, Commercial banks, and Mint are some of these financial institutions.

Every nation uses physical money; therefore, their intrinsic value is determined by governments through their respective central banks. Physical currency exists as stored data, such as bank balances and records of credit and debit card settlements. Money supply is regulated through the minuscule reserve system, where banks and financial institutions are permitted to accept deposits and take loans as long as they have reserves.

The deposit liabilities are usually more than the bank reserve making the money supply to be more than the base money. To ensure banks have sufficient money for withdrawals, the central bank is charged with the responsibility of regulating the whole process of the money supply.

The Demise of Physical Money

According to many financial experts, the days of the dollar being the global reserve currency are slowly coming to their end. It could be substituted from 10 to 15 years from now. The question is not whether it’s going to happen because it is going to happen, the real question is, when. It looks like notable financial experts like Peter Schiff, Bill O’Reilly, Robert Kiyosaki, and Coinbase CEO, Brian Armstrong, agree with these sentiments although having different outlooks of how the whole situation might play out.

From the observation of the market trends and technological advancements being made, we foresee the US dollar falling from being the world’s economic sledgehammer sooner than expected; its fall will be at the hands of virtual currencies such as Bitcoin and Litecoin.

Litecoin Price Analysis

Litecoin has experienced substantial declines in price this year trading at a low of 73.17 US dollars from a high of 323.12 US dollars earlier this year.

But, according to crypto experts, Litecoin has the potential to reach as high as 500 to 600 US dollar, regardless of its current situation. Currently ranked as the 6th most significant digital coin in the crypto market with a market cap of $4.8 billion, Litecoin is no doubt a digital currency worth watching and investing.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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