Wyre CEO: Bitcoin will surpass gold in 20 years and replace the US dollar as the world's reserve currency

Michael Dunworth, CEO of blockchain payments company Wyre, said he believes Bitcoin "will replace gold" and will replace the U.S. dollar as the world's reserve currency within the next 20 years.

The Silicon Valley-based money transfer service said this in an interview with InvestorDaily.

Dunworth also pointed out that Bitcoin is more valuable than gold, but it still lacks market penetration (a comparison of current demand and potential market demand in the market).

Hedging

Dunworth said:

In about 20 years, (Bitcoin) will eventually replace gold and even the US dollar as the global reserve currency.

In terms of value preservation and practicality, Bitcoin is far more valuable than gold. However, Bitcoin's market penetration still needs to be strengthened.

It turns out that there are many people who share the same opinion as Dunworth. In addition to him, there are many people in the cryptocurrency field who believe that the main use of Bitcoin is to store value rather than as a currency.

As bitcoin prices soared last week, well-known cryptocurrency forecaster Vinny Lingham said bitcoin will only fully function as a currency once it reaches the end of its long development process, and that this is not the main development goal of the digital currency in 2017.

Bitcoin’s first phase (2008-2016) – creating a digital commodity; second phase – proving it as a store of value; third phase – as a currency.

He believes that the most important attributes of Bitcoin are firstly a commodity and secondly a means of preserving value.

Although Bitcoin’s price fell back below $1,000 last week, Lingham believes that price fluctuations do not represent a Bitcoin bubble, but can also be a manifestation of asset instability (just like gold).

I think if Bitcoin goes to $4,000 in 2017, then we may be facing a Bitcoin bubble. Bitcoin should grow slowly and steadily to $3,000. The best situation for Bitcoin price is to stay below $2,000 in the next three months.

Internet Currency

At the same time, Dunworth acknowledged that short-term volatility in any asset can put off some cautious investors. Still, he believes it’s worth comparing Bitcoin at this stage to the early days of the Internet:

Imagine if you could go back to 1991 and have the opportunity to buy Internet stocks, would you buy them? Of course you would, because you already knew that the Internet is the most influential product in the world today.

Bitcoin and blockchain are the "currency products of the Internet age", so Bitcoin has the same potential as the Internet back then. If you have the opportunity, you should hold it.