![\"Economist](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2021\/01\/ditch-dollar-768x432.jpg\")
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American economist Brian Wesbury has shared his thoughts on what would happen if the masses were to ditch fiat currencies and adopt bitcoin instead. He discussed whether the government would allow it to happen and how bitcoin can become a true currency.<\/strong><\/p>\n Brian Wesbury is an economist with a focus on macroeconomics and economic forecasting. He is currently the chief economist at First Trust Advisors, a financial services firm headquartered in Wheaton, Illinois.<\/p>\n He was asked on Fox Business News last week about what would happen \u201cif the masses were to ditch fiat currency,\u201d whether it will \u201ctrigger a financial collapse,\u201d and \u201ccould bitcoin ever replace the dollar?\u201d Wesbury began by acknowledging:<\/p>\n A lot of people who are buying bitcoin and other cryptocurrencies believe that they are going to replace the dollar.<\/p>\n<\/blockquote>\n He explained: \u201cif they were to replace the dollar, if you take all the of the M1 \u2014 its all of the checking accounts and cash \u2014 in the system, you divide it by all the bitcoin that can exist \u2014 21 million of them \u2014 you end up with over $300,000 worth of worth if it replaced the dollar.\u201d<\/p>\n However, he raised a number of questions: \u201cWill the government allow that to happen? Can you pay your taxes in bitcoin? Can you buy anything you want with bitcoin?\u201d The economist opined:<\/p>\n That\u2019s what has to happen for you to have a true currency \u2026 so it\u2019s a long way away from that.<\/p>\n<\/blockquote>\n The chief economist did not mention that a growing number of jurisdictions are already embracing bitcoin for tax payments. For example, the canton of Zug<\/a> in Switzerland announced that it will start accepting bitcoin for tax payments this year. Several other local governments in Switzerland have made a similar announcement, such as Zermatt<\/a>.<\/p>\n Recently, the mayor of Miami<\/a> said that he is working on allowing payments for city services in bitcoin. Furthermore, a growing number of stores are accepting bitcoin payments. Payments giant Paypal<\/a>, for example, is planning to allow people to use cryptocurrency to pay for goods and services at 2.8 million merchants in its network this year.<\/p>\n <\/ins> <\/ins> <\/p>\n Wesbury also claimed that the volatility of bitcoin is one of the problems. As an example, he said he hopped into his car with two bitcoins in his pocket. \u201cWhen I got to the car dealer, I didn\u2019t know if I could buy two cars or half a car and that\u2019s one of the problems with bitcoin.\u201d He concluded:<\/p>\n It\u2019s so volatile that we don\u2019t know really what it\u2019s worth.<\/p>\n<\/blockquote>\n However, many experts have argued that the volatility of bitcoin decreases with rising adoption. Alliance Bernstein\u2019s Inigo Fraser-Jenkins said in December that bitcoin\u2019s volatility has significantly declined<\/a> over the past three years, making it a more attractive store of value, and its relative volatility to both gold and stocks has fallen to historically low levels. In July, BTC<\/a>\u2019s volatility hit a three-year low<\/a>. In addition, billionaire investor Bill Miller said Friday that bitcoin becomes less risky<\/a> the higher the price goes.<\/p>\nEconomist Brian Wesbury Answers Question About the Masses Ditching Fiat Currencies for Bitcoin<\/h2>\n
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