Cryptocurrencies Rallying Despite Experts’ Pessimistic Predictions
July 12, 2018
Cryptocurrencies are getting more mainstream although some skeptics reproving the new payment means, as British exchange eToro and Imperial College London reports.
Researches point at the features of Bitcoin, the major digital currency by market cap that is on its way to becoming full-fledged money.
Bitcoin: Next Step for Fiat
According to the report of the study called “Cryptocurrencies: Overcoming Barriers to Trust and Adoption” Bitcoin is the “‘next step’ for money.” Indeed, money has always been an evolving system: from barter and seashells to coins, notes and mobile payments. In this digital age decentralized money threaten to supplant fiat or at least to compete with it. And Bitcoin is just the case.
“There’s a lot of skepticism over cryptocurrencies and how they could ever become a day-today payment system used by the man on the street … cryptocurrencies have already made significant headway towards fulfilling the criteria for becoming a widely accepted method of payment,” the report runs.
Indeed, Bitcoin has now one out of the three features for it to be regarded as money – now it is a store of value just like gold. According to the report, the three criteria are:
- Store of value
- Means of exchange
- Unit of account
To meet the second and third points, wider crypto market will have to overcome some obstacles for growth like scalability, design and regulation, to say nothing of volatility and privacy.
These problems are resolved by adopting Lightning Network which is purposed to maintain transactions and add scale into the network. Ethereum attempts to do it with the approach known as sharding which will significantly increase the number of transactions blockchain can support.