Bitcoin can replace traditional currency within a decade
According to scientists of the Imperial College of London, cryptocurrencies are "the next natural step" in the development of the world economy, according to an article on the portal Newsbtc.com.
The study, described by the Independent, presents the results of Professor William Nottenbelt and Dr. Zeynep Gurguk. They argue that digital currencies such as Bitcoin and Ethereum have already passed one out of three fundamental tests in order to become a real currency: to act as a monetary contribution.
They refer to three main criteria for the currency: the ability to act as an account, the means of exchange and the unit of account. Bitcoin and other large cryptocurrencies now meet one of the criteria, as a lot of people use them as an account for funds.
In general, coins must meet the two remaining functions that are necessary to become a legitimate currency as a means of exchange, thereby facilitating people's acquisition of goods and services. They must prove that they can be used as a unit of account for measuring a measure of value in an economic system.
In order to fulfill the remaining conditions, the researchers emphasized that bitcoin and other cryptocurrencies need to overcome such problems as scalability and regulation.
"The world of cryptocurrency is developing as rapidly as the terminology that accompanies it, and the potential of these decentralized technologies is able to turn everything that we thought and knew about the financial system and financial assets," said Nottenbelt.
Cryptocurrency is surrounded by skepticism about how it can be used by a person from the street as a daily payment system. The study says that the Cryptocurrencies have made significant progress in meeting the remaining criteria to become the ubiquitous method of calculation.
If the Cryptocurrency is progressing in terms of functionality, they will demonstrate a viable technology that will update the payment system, said Nottenbelt.
"New payment systems - or asset classes - do not appear right away, but it's worth noting that the concept of money has changed - even in our time - from cash to electronic or non-cash payments. The wider use of crypto and crypto assets is the next natural step if they overcome six conditions (scalability, usability, regulation, volatility, incentives, and confidentiality), which we indicated in our study, "added Gurguk.
At present, a long process of transmission in conjunction with a large amount of processing power creates limitations for bitcoin. In addition, it is necessary to overcome such problems as lack of knowledge about technology in the general public and regulating.
The study was conducted a week after the Bank of England warned financial bosses that using a cryptocurrency could expose their business to reputational risks and attract fraudsters.
According to Nottenbelt, despite this "skepticism", he hopes that the cryptocurrency will become a widely used method of payment since it has already made significant progress in meeting the necessary conditions.
Iqbal Gundam, Managing Director of eToro in England, described the situation as follows: "The history of money is a history of evolution, new technologies replace old ones for better transfer of funds from one person to another. Cryptocurrency is the next step in this journey. Given the speed of adoption, we hope that we will be able to see how bitcoin and other cryptocurrencies dominate within a decade. "
Posted from my blog with SteemPress : https://coinatory.com/2018/07/11/bitcoin-can-replace-traditional-currency-within-a-decade/