E-toro and the Imperial University of London conducted an investigation that reveals the future of fiat money.
The possibility to use Bitcoin and the Ethereum technology as a “warehouse of value” makes cryptocurrencies trustworthy for users. E-toro, and the Imperial University of London recently conducted an investigation that tried to predict the future of fiat currency and cryptocurrency concluding that cryptocurrency will replace traditional money in 10 years.
William Knottenbelt and Zeynep Gurguc, who participated in the investigation, claim that cryptocurrencies are adaptable as a medium of commercial exchange because many people use cryptocurrencies to get products and services in the international market. Cryptocurrencies act as a measure of value as well.
According to industry experts, cryptocurrencies simply need to overcome regulations and scalability issues. Knottenbelt and Gurguc explained that,
“These decentralized technologies have the potential to alter everything we think we know about the nature of financial systems and financial assets. […] There is a lot of skepticism about cryptocurrencies and how they could become a daily payment system used by men in the street. In this research, we show that cryptocurrencies have already advanced significantly towards meeting the criteria to become a widely accepted payment method”.
Knottenbelt also explained that cryptocurrencies have to overcome six obstacles: scalability, usability, regulation, volatility, incentives and privacy. If they are able to accomplish this, hey could replace traditional money even faster.
The most popular cryptocurrencies in the world are: Bitcoin, Ethereum, Litecoin and Ripple. Bitcoin was created in 2009. It is the first cryptocurrency and it uses blockchain technology in order to safeguard user information. It is based on a decentralized computer network, which means nodes are scattered around the world with copies of all the transactions that have been made. The general algorithm remains unchanged. The system as a whole is constantly improving. The total capital of the investments is more than 90 billion dollars.
In the beginning, people used coins fabricated with silver and gold. Then, cash and credit cards appeared throughout the world. Now, cryptocurrencies are the present and are the future of the global economy.
by María V. Rodríguez
