Úno 09

Shark Tank’s Robert Herjavec: ‘Cryptocurrency is the Future’

· February 9, 2018 · 9:30 am

Investor Robert Herjavec of Shark Tank fame is a big proponent of cryptocurrency, predicting that it will eventually replace cash.

One thing you can say about the principals on Shark Tank, it’s that they are pretty bold in going after what they want. Investor and cybersecurity expert Robert Herjavec is also not shy on where he thinks cryptocurrency will go in the future. He recently told MONEY that we’ll see cryptocurrency eventually chase away the concept of fiat.

Shark Tank

Big on Blockchain

One reason why Herjavec is bullish on cryptocurrency’s future is that he’s a big believer in blockchain technology. He says that this new technology is an absolute game-changer that will revolutionize how businesses verify transactions. This viewpoint is shared by his Shark Tank compatriot, Mark Cuban.

Herjavec then goes on to add:

It’s going to have massive benefits for humanity, in all kinds of transactions.

As for virtual currencies, he says:

To me, it’s the wave of the future. Fast forward 25 years from now, there will be some form of a cryptocurrency that we will pay for electronically, and the concept of cash will go away one day.


Crypto Still Too Wild

While his comments above suggest that Robert Herjavec has bought his ticket for the cryptocurrency train and is picking a seat, he’s actually still not fully on board. He thinks virtual currencies are still way too volatile. He notes:

There’s no base for it. When I buy a house and it’s overpriced, I can live in it. There’s some fundamental value. The challenge with cryptocurrency is, it could go to zero. There’s no one exchange that is making them. Exchanges that sell them now can be hacked. We recently saw the largest breach ever — $500 million in 24 hours. If you had bought that exchange, it’s not that you’ve gone down 20% or 40%, you’ve actually gone to zero.

The exchange breach he references is, of course, the recent Coincheck hack. It is understandable for a businessman to be wary of any type of currency that can swing wildly in value from one day to another. Still, the ups and downs of crypto is what makes it so exciting to many people.

As for cryptocurrency replacing fiat in 25 years, that’s probably a bit of a stretch. It’s highly likely that virtual currencies will become as everyday as debit and credit cards are now, but cold, hard cash will probably be sticking around for some time.

Do you agree with Shark Tank’s Robert Herjavec that cash money will vanish in the future, to be replaced with some form of cryptocurrency? Let us know in the comments below.

Images courtesy of Flickr/@Disney | ABC Television Group and Bitcoinist archives.

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Pro 23

Central Banks Could Hold Cryptocurrencies in 2018

· December 23, 2017 · 3:00 am

With Bitcoin and its smaller siblings gaining so much momentum in 2017, governments and central banks now have little choice but to acknowledge that cryptocurrencies are here to stay. Volatility is still a major setback, especially with Bitcoin, which has swung by $8,000 in just seven days.

Of banks and cryptocurrency, Peter Smith, CEO of Blockchain, told CNBC in an interview last week:

This year will be the first year we start to see central banks start to hold digital currencies as part of their balance sheet.

Smith stated that central banks would likely buy Bitcoin and Ethereum as part of their reserves, just as they do with gold and foreign currency. The rise of Bitcoin as an asset would mean that some major financial institutions would have to start holding it.

Smith went on to say:

Bitcoin is already a top 30 currency by supply, and this trend, and pressure to hold digital currency as part of reserves will only accelerate as the price rises.

Digital Gold

There is growing opinion among bankers that cryptocurrencies will be held by central banks in order to be better prepared for shocks to the markets. According to Eugene Etsebeth, a former central banker with the South African Reserve Bank:

In 2018, G-7 central banks will witness bitcoin and other cryptocurrencies becoming the biggest international currency by market capitalization. This event, together with the global nature of cryptocurrencies with 24/7 trading access, will make it intuitive to own cryptocurrencies as they become a de-facto investment as part of a central bank’s investment tranche.

He added that digital currencies would also facilitate international trade.

Big Boy ICOs

State Coins

It has also been widely suggested that nations would have to consider issuing their own digital state coins, or stablecoins, which would be pegged to local currency. A number of central banks have already started to investigate the possibility of a state-issued cryptocurrency. Banks in the United Arab Emirates and Saudi Arabia announced a partnership to issue a cryptocurrency for cross-border trade last week. The People’s Bank of China also hinted that it would be launching a new state virtual currency in the near future.

European Central Bank President Mario Draghi remains skeptical and said cryptocurrencies are not “mature” enough to be considered for regulation yet. He went on to say:

With anything that’s new, people have great expectations and also great uncertainty. Right now we think that especially as far as bitcoins and cryptocurrencies are concerned, we don’t think the technology is mature for our consideration.

However it is only a matter of time before cryptocurrencies are considered mature enough by bankers and governments alike.

Will banks hold crypto next year? Let us know your thoughts in the comments below.

Images courtesy of Pixabay and Bitcoinist archives.