Chairman of Forbes: Without political struggles or uncertainties in the financial system, Bitcoin will find it difficult to gain widespread adoption.

Last week, Walter Bradley of the Natural and Artificial Intelligence Research Center interviewed Steve Forbes, Chairman and Editor-in-Chief of Forbes, on the future of cryptocurrencies and blockchain technology, and their impact on global currencies, global cybersecurity, and internet infrastructure.

Increasing Global Uncertainty

Governments around the world printing large amounts of money under quantitative easing policies have exacerbated global economic uncertainty. Taking Japan as an example, the government implemented quantitative easing in the late 1980s, leading to a significant decline in economic output and severe deflation from 1990 to 2000, a period known as the "Lost Decade" in the Japanese economy. Even thirty years after the implementation of quantitative easing, Japan has not fully recovered. Critics of unlimited quantitative easing argue that without other measures, the United States may follow a similar path.

Steve Forbes views cryptocurrencies as a product of people turning to high technology for help. Despite its main flaw of instability, Forbes believes that when it becomes stable, it will provide people with another choice besides fiat currency. However, while Bitcoin or other cryptocurrencies may help in this regard, Forbes points out that the huge fluctuations in the Bitcoin market remain a significant challenge. In early June this year, former Chinese central bank executive Wu Xiaoling also expressed similar concerns, stating that while Bitcoin is the most successful commercial application of blockchain technology, its high volatility means it is more of a speculative tool than a legitimate currency option.

Mistake of Imposing a Total Supply Cap

On the other hand, Steve Forbes points out that limiting the supply to create scarcity value was a mistake made by the creator (Satoshi Nakamoto). Forbes explains that currency itself should be a tool to promote business and economic development, rather than control the economy and hinder the development of business and trade activities through scarcity.

Bitcoin adoption has increased in three countries, Syria, Lebanon, and Venezuela, since last year, with several retailers in Venezuela accepting Bitcoin as a payment tool for daily consumption. However, Steve Forbes attributes this to the failed economic structures under local government systems, rather than Bitcoin itself.

Development Obstacles of Bitcoin

The birth of Bitcoin originated from the turbulent financial environment in 2008. Steve Forbes believes that without political and regulatory struggles or financial system uncertainties, Bitcoin would not have been widely adopted. At the same time, governments would not have allowed cryptocurrencies to develop freely and undermine the legitimacy of the economy.

When discussing the future of cryptocurrencies, Steve Forbes stated that the market needs to significantly lower entry barriers for users to use frictionlessly to ensure its availability and adoption as a crisis currency. Additionally, the market needs to implement measures to suppress volatility. Furthermore, Forbes also added that in his view, the stablecoin market is thriving and its utility will surpass more speculative digital assets in the near future.