The Federal Reserve-led central banks monetary tightening caused a stunning collapse in the price of bitcoin last year, but it has since recovered as the market waits for an earthquake in China.
Now, Tesla billionaire and Twitter owner Elon Musk stated he agreed with a prediction that may see all currencies backed by computer processors by 2030. This comes as some of Wall Street’s top corporations suggest they may be poised to enter the bitcoin, ethereum, and crypto sector.
A user on Twitter, which Elon Musk recently acquired, made the prediction that all currencies will be fully backed by GPUs by 2030, referring to the digitization of conventional currencies, which five years ago would have sounded like a crypto prediction.
Musk retorted, We should probably stop referring to them as GPUs, but yeah. The use of graphics processing units (GPUs) by artificial intelligence (AI) researchers has sent the stock value of businesses like GPU creator Nvidia surging as part of this year’s AI investment boom. GPUs were initially developed to accelerate computer graphics and image processing in video games.
Globally, with China in the forefront, more nations are looking into digitizing their money and developing what are now referred to as central bank digital currencies (CBDCs).
Millions of people across China now use China’s digital yuan, which is only available online, is run and backed by China’s central bank, and uses some of the same blockchain technology as bitcoin. This has prompted the U.S. Federal Reserve and the European Central Bank (ECB) to start investigating how they can digitalize their own currencies.
In the meantime, the market capitalization of so-called stablecoins, a type of blockchain-based cryptocurrency tied to traditional currencies like the U.S. dollar on a 1:1 basis, has skyrocketed since they were first released a decade ago amid soaring demand.
Some predict that interest in cryptocurrencies like bitcoin and ethereum will increase as a result of the broad digitalization of currencies, which will drive trade and commerce online and give central banks unparalleled control over how their currencies are used.
