A new study says that Bitcoin along with its fellow cryptocurrencies is the ‘next step’ towards money and are going to transform the mainstream form of transactions by taking the center stage.
The Imperial College of London and eToro, a trading platform had its researchers examine the basic purpose and roles of the traditional currency against the achieved growth of cryptocurrencies.
According to the researchers, the three primary criteria to assess its importance are:
- Store of value
- Medium of exchange
- Unit of account
They connected the three criteria and verified that Bitcoin and other cryptocurrencies are passing the criteria of ‘store of value’. This is because of the widespread adoption of cryptocurrencies by common people to invest, trade, and buy goods and services in places around the globe.
Issues of scalability, regulations, and suchlike are a major hindrance for the cryptocurrencies including Bitcoin to fulfill the two last criteria out of the three.
Professor William Knottenbelt from Imperial in context with this research says:
“The world of cryptocurrency is evolving as rapidly as the considerable collection of confusing terminology that accompanies it. These decentralized technologies have the potential to upend everything we thought we knew about the nature of financial systems and financial assets.”
Despite the adoption of cryptocurrency in real life, there is much skepticism regarding their use-case. The study, according to its researchers, proves that cryptocurrencies are not behind in their use-case and have achieved a good amount of success to be accepted on an even larger scale.
Moreover, researchers also believe that cryptocurrencies are to be adopted naturally in the future, drawing from the history of our economy where the payment methods kept becoming smoother, easier, and more advanced. The key to achieving this is the technology used to run them. To justify this, an example of lengthy cross-border transactions was cited against an easy, low-cost, and fast-paced decentralized remittance service.
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