Controversial American whistleblower Edward Snowden has predicted that Bitcoin will one day cease to exist, claiming that other cryptocurrencies will most likely pave the way in terms of value.
The 35-year-old, who is currently seeking asylum in Russia, was interviewed by the American Civil Liberties Union last week. He discussed potential use-cases for blockchain technology as well as the ‘hype cycle’ tied to cryptocurrency.
Snowden claimed that a vast amount of capital is being sent across the world daily, all of which is bypassing central banks. He went on to say that while people still want to transfer money across the globe, cryptocurrency will hold value, but Bitcoin will not.
He commented: “That belief is how cryptocurrencies move enormous amounts of money across the world electronically, without the involvement of banks, every single day. One day capital-B Bitcoin will be gone, but as long as there are people out there who want to be able to move money without banks, cryptocurrencies are likely to be valued.”
— ACLU (@ACLU) November 21, 2018
However, in spite of predicting Bitcoin’s demise Snowden speaks positively of its utility, labeling it as the world’s first “free money”.
He continued: “Let’s say Bank of America doesn’t want to process a payment for someone like me. In the old financial system, they’ve got an enormous amount of clout, as do their peers, and can make that happen. If a teenager in Venezuela wants to get paid in a hard currency for a web development gig they did for someone in Paris, something prohibited by local currency controls, cryptocurrencies can make it possible. Bitcoin may not yet really be private money, but it is the first “free” money.”
His comments coincide with Bitcoin’s roughest week in five years, with the digital currency falling to as low as $3,450 from last week’s high of $5,550.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.