Bitcoin and other digital currencies won’t entirely replace traditional currencies like dollars, venture capitalist Joyce Kim told CNBC on Wednesday.
The SparkChain Capital co-founder said on “Squawk Box” that she does not believe “the tokens will become the money of the future for every single person for every transaction.”
Kim, whose firm invests in blockchain and cryptocurrency innovations, said she believes “it’s super important for people in various economies to be able to transact in local currencies.”
In fact, she predicted the dollar “will eventually run like current cryptocurrencies” because the underlying blockchain technology is “faster, more efficient, cheaper.”
“The rails in which upon our currencies run, that is really out of date. That can be upgraded,” she added.
Kim, also co-founder of digital currency payments platform Stellar, spoke after the price of bitcoin after a number of other major digital assets fell sharply this week on concern about a crackdown on virtual currencies in South Korea.
Bitcoin, the world’s largest cryptocurrency, traded below $10,000 at one stage Wednesday, nearly 50 percent below last month’s all-time high. Ethereum and ripple — the second- and third-biggest digital coins, respectively — also moved sharply lower. Though it’s worth noting that all three of those have absolutely skyrocketed over the past 12 months.
Despite the confidence of cryptobelievers, there are also big-name naysayers.
For one, J.P. Morgan Chase Chairman and CEO Jamie Dimon has said virtual currencies would never be a major competitor to the dollar. But he’s indicated the technology behind them could be used for more efficient transactions. Dimon recently said he regrets calling bitcoin a “fraud” back in September.
Additionally, billionaire investor Warren Buffett told CNBC earlier this month that he believes the recent craze over bitcoin and other cryptocurrencies won’t end well. “If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it but I would never short a dime’s worth,” Buffett said, who was referring to a “put option” versus selling short or betting an asset price will go down.
However, SparkChain’s Kim said she doesn’t think bitcoin and other cryptocurrencies will disappear.
“They all have their individual use cases, they all have a specific [use],” she said. For example, most people currently use bitcoin “as a savings system” and “an investment tool.”
Source: Tech CNBC
Dollar will eventually run like bitcoin and other cryptocurrencies, venture capitalist Joyce Kim predicts