Bitcoin wallet Xapo-founder Wences Casares believes it will take a few more years before the success of bitcoin can be determined. In an interview with Bloomberg he called bitcoin an ‘intellectual experiment’ and compared it with the internet in 1992. However, he believes the chance of success is much bigger than the chance of failure.
Casares thinks cryptocurrency and bitcoin will not replace existing money. Instead bitcoin will become a nonpolitical standard of value. Everybody in the world will use bitcoin bitcoin to price something.
“When you ask for the price of Turkish lira, you get a price in bits, when you ask for the price of a barrel of oil, you get a price in bits, when as for the price of the U.S. dollar you get a price in bits.”
Casares predicted last year that one bitcoin will be valued 1 million dollars in five to ten years. This would fall in line with his idea that it will take at least seven more years before bitcoin has proven itself to be a success.
Xapo has underground vaults on five continents. In a Swiss decommissioned military bunker the company reportedly is storing 10 billion dollars worth of Bitcoin, around 7% of the global supply. Xapo is backed by Linkin-founder Reid Hoffman and trader Mike Novogratz.