According to the Telegraph, a study completed by Imperial College London has indicated that ether and bitcoin adoption will be the “next natural step for the global economy”. This is because these two cryptocurrencies have passed one of three tests to become a universally recognized currency. They both act as a store of value, passing the first test. Additionally, if the current rate of growth continues, both bitcoin and ether could soon pass the remaining two tests. The study predicts that within a decade people will be using bitcoin to make regular purchases.
Cryptocurrency based assets and the concept of money
The study was commissioned by the eToro exchange, who have not been hesitant in cryptocurrency adoption. Professor Knottenbelt of Imperial College London indicated that “cryptocurrencies have already made significant headway towards fulfilling the criteria for becoming a widely accepted method of payment”. Dr. Zeynep Gurguc from Imperial College London made the point that the concept of money is evolving, and we have quickly moved from cash to card to contactless payment. The next natural step is a wide use of cryptocurrencies along with cryptocurrency based assets.
“New payment systems (or asset classes) do not emerge overnight but it is worth noting that the concept of money has evolved – even in our lifetime – from cash to digital or contactless payments. The wider use of cryptocurrencies and crypto-assets is the next natural step”
At one point, bitcoin came under criticism due to high transaction fees. But the Lightning Network is now available on certain applications, including Android wallets. This means that transactions cost almost nothing and are very quick. Lightning Network has already been tested by multiple individual users who are attesting to its effectiveness. But some question marks remain about how the network will fare when it becomes adopted en mass.
It is already possible to make a wide variety of purchases with cryptocurrencies, and not just bitcoin and ether. Cheap Air is an airline and hotel provider that accept a large number of cryptocurrencies, the number of cryptocurrency ATMs is increasing, and online and physical vendors are increasingly accepting cryptocurrency. We could bypass debit cards altogether, as people would pay with a QR code on their smartphone. Houses, cars, and jewelry are often bought using cryptocurrency, primarily bitcoin.
The study is very bullish news for the cryptocurrency industry, as the Imperial College of London is highly regarded. Since the start of 2018, there have been a wide variety of cryptocurrency based assets adopted by financial providers. There has also been regulatory acceptance from various jurisdictions.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.