Will cryptocurrencies ever take the place of the dollar or the yen? There’s a new study saying it will not only happen, it will happen faster than many expect.
It’s not a surprise that the study found Bitcoin and Ethereum to be ahead of other cryptocurrencies in the race to replace traditional currencies. Most in the industry – and perhaps more importantly, many outside the industry – have watched those two particular e-currencies grow into the mainstream.
Ten years seems a bit fast for such an ascension, but most such advances happen faster than most people expect. The rise of Bitcoin has already been meteoric. Why shouldn’t it continue?
Here’s an excerpt from NewsBTC detailing the study: Study Says Bitcoin Will Replace Traditional Currency Within Ten Years
The study, as outlined by the Independent, presents research from Professor William Knottenbelt and Dr. Zeynep Gurguc. The two claim that digital currencies like Bitcoin and Ethereum have already passed one of the three fundamental tests to become a bona fide currency: acting as a store of value.
They reference three main criteria for currencies: being able to act as a store of value, a medium of exchange, and a unit of account. Bitcoin and other major cryptocurrencies are already serving one of those roles, as millions of people are using them as a store of value.
Moving forward, the coins need to fulfill the two remaining roles necessary to become a legitimate currency, becoming a medium of exchange by making it easier for people to exchange goods and services, and also prove it can be used as a unit of account, acting as a measure of value in the economic system.
In order to fulfill the final two criteria, the researchers said Bitcoin and other cryptocurrencies will need to overcome challenges like scalability and regulation.
“The world of cryptocurrency is evolving as rapidly as the considerable collection of confusing terminology that accompanies it. These decentralised technologies have the potential to upend everything we thought we knew about the nature of financial systems and financial assets,” said Professor Knottenbelt. “There’s a lot of scepticism over cryptocurrencies and how they could ever become a day-to-day payment system used by the man on the street. In this research we show that cryptocurrencies have already made significant headway towards fulfilling the criteria for becoming a widely accepted method of payment.”
Should cryptocurrencies continue to progress in terms of functionality, Professor Knottenbelt said they represent a viable technological update to the way we spend money.
The market is becoming increasingly bullish when it comes to cryptocurrencies. This status should feed the bulls.