As the days go by, cryptocurrency pundits appear more bullish over the future of cryptocurrency. Since its advent just a decade ago, cryptocurrency has grown exponentially in the market. Creating an entirely new economy and adding new jobs, some suggest it will permanently kick fiat currency out of the market.
Pitfalls
In spite of this exponential growth, cryptocurrency remains relatively volatile in the market, suffering pitfalls from time to time. Also, of all the setbacks bedeviling digital currency, acceptability is arguably the most threatening. Many governments worldwide are enacting laws to ban the use of virtual currency in their countries. Despite these overwhelming constraints, cryptocurrency experts remain confident that it’s here for the long-term.
Expert Trajectory
Cryptocurrency experts are lending their voices to ongoing debates about what the future holds for cryptocurrency. Many of them believe that cryptocurrency is the currency of the future, primarily because it is a decentralized currency. Research conducted by Imperial College, London, in collaboration with an online trading platform, eToro, reviewed the fundamental functions of fiat currency and the likelihood that cryptocurrency is effectively playing in them.
Research Findings
While carrying out the research, they focused on three key functions of money: unit of amount, medium of exchange and store of value. After extensive research, their findings revealed that Bitcoin and altcoins are already performing one of the functions, a store of value.
But the researchers identified scalability and regulations as the major challenges battling them. William Knottenbelt, a member of the research team, believes that cryptocurrency is already making headway and its future is sparkling bright.
Echoing Professor Knottenbelt’s standpoint was Zeyynep Gurguc from the same team. Though, he expanded Professor Knottenbelt’s view by adding that the virtual currencies face six major hitches. He identified them as privacy, usability, incentives, regulations, scalability and volatility. Dr Gurguc opined that if the six challenges could be effectively tackled, digital currency would naturally replace paper money.
Conclusion
In conclusion, the research states that payment instruments are constantly undergoing a series of changes. Cryptocurrency is next in line to find use as a payment instrument. Furthermore, the research paper cited cross-border payment as an example of the current financial drawback being tackled with decentralized cryptocurrency. The study ended by forecasting that cryptocurrency is likely to completely replace fiat currency in less than a decade due to its speed of adoption.
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