Steve Forbes, an American publisher, has recently struck off Bitcoin’s fixed supply. According to him, this fixed supply limits the ability of the asset to meet the demand of this growing economy. Even though he showed concerns regarding the fixed supply of Bitcoin, he claimed that crypto is counted among the respectable investment class now. The reason being that a lot of financial institutions have also added crypto to their platforms. This huge adoption has happened during the COVID-19 pandemic as a majority of people have moved towards digital methods. Steve Forbes Believes Bitcoin Cannot Replace Dollar While talking about the potential of Bitcoin, Steve Forbes has mentioned that Bitcoin will not be able to replace Dollar. He has claimed that the huge price volatility of Bitcoin will not let it replace the dollar because it cannot function as money. According to him, money needs to have a stable value to perform well. Steve Forbes has suggested that Bitcoin will be able to challenge existing money, only if its value is tied to either gold or Swiss franc currency. Otherwise, it won’t be able to challenge the existing money. He believes that at the present time, crypto is able to gain the position of a respectable investment class. He explained: “The Federal Reserve and other central banks have crushed interest rates and are printing unimaginable amounts of money to pay for Covid relief measures and to stimulate damaged economies.” This is another reason why Bitcoin has surged to such great extent in the past few weeks. Bitcoin’s Volatility Affecting Contracts Steve Forbes has mentioned that Bitcoin volatility is going to majorly affect the contract system. He stated that the contract system is highly essential for the economy and Bitcoin is not going to fulfill that. It is not possible for anyone to sign a long term contract based on Bitcoin.
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