Will Bitcoin (BTC) Become the Next Step for Payments?
More and more predictions indicate that cryptocurrencies will rule the monetary system. Members from Imperial College London and eToro have published a study on this.
Bitcoin, the first and most discussed cryptocurrency is currently used as a deposit as well as a speculative investment alternative. Even with a considerable worldwide adoption rate, researchers believe it may be even more- the “next step” for currencies.
Imperial College London’s Professor William Knottenbelt told Independent UK that:
“The world of cryptocurrency is evolving as rapidly as the considerable collection of confusing terminology that accompanies it. These decentralised technologies have the potential to upend everything we thought we knew about the nature of financial systems and financial assets.”
“There’s a lot of scepticism over cryptocurrencies and how they could ever become a day-to-day payment system used by the man on the street. In this research we show that cryptocurrencies have already made significant headway towards fulfilling the criteria for becoming a widely accepted method of payment,” he added.
Is Bitcoin still linked to scalability issues?
If we think better, Bitcoin continues to face scalability issues as BTC transactions are processed up to a few hours depending on their volume – the interval in which the value of the currency can fluctuate considerably. To solve the problem, Bitcoin launched the Lightning Network.
Dr. Zeynep Gurguc from Imperial College London considers that cryptocurrency-based systems still need to be processed. He claimed that:
“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 if they successfully overcome the six challenges [scalability, usability, regulation, volatility, incentives and privacy] we set out in our report.”
Regardless of the problems faced by cryptocurrencies, Independent UK indicates that these along with blockchain technology will become the “next step” in the evolution of financial operations. Iqbal Gandham, UK Managing Director of eToro, expressed his opinion, saying that:
“The history of money is a history of evolution, of new technology replacing old to improve the transfer of value from one person to another. Cryptocurrencies represent a next step on this journey. Given the speed of adoption, we believe that we could see Bitcoin and other cryptocurrencies on the high street within the decade.”