Many people have wondered how will life work when cryptocurrencies eventually become mainstream. How will they affect our daily lives, our jobs, our countries and the economy in general?
It’s no secret to anyone that today’s economy is fueled by debt and endless money printing. So in theory cryptocurrencies going mainstream will be greatly beneficial to every economical aspect. Endless money printing and debt are virtually impossible if cryptocurrencies become the most used form of exchange.
The trading platform eToro issued a press release on July 9th. According to a study conducted by the trading platform and the Imperial College of U.K., cryptocurrencies already cover one of the three criteria of money.
Professor William Knottenbelt from the Imperial College and Dr. Zeynep Gurguc from the Imperial College Business School stated cryptocurrencies are the “next natural step” for money and can be used as a mainstream exchange instrument in the next decade.
The three criteria, as mentioned above are:
- The store of value
- The medium of exchange
- The unit of account
Cryptocurrencies can already be used as a store of value. To meet the requirements of the other two criteria, cryptocurrencies have many issues that need to be tackled.
The road to becoming a mainstream tool of exchange
First and possibly of the highest importance, there’s the question of security and privacy. With the recent series of unfortunate events in South Korea, security is a highly debated topic in crypto spheres.
With the market’s crazy last few months it’s also very important to note that volatility needs to be addressed as well. There’s also the question of scalability, usability and so on. In short, the road to becoming a mainstream form of exchange is very long and full of challenges.
The challenges cannot be overcome overnight and it’s going to take incredible work and dedication for such an innovation to go through. Without a doubt when the day finally comes, the world of finance will be shaken to its core.
Funnily enough, recently (BIS) the Bank for International Settlement’s head Agustin Carstens, gave a huge rant against cryptocurrencies. As ironic as it seems, it appears central banks do not believe in “creating money out of thin air”.
Lately many experts and investors alike have struggled to determine how exactly cryptocurrencies going mainstream will affect global finance. If innovations continue to pop up and people start walking away from the massive debt trap from the central banks, maybe cryptocurrencies can take less than a decade to hit the mainstream.
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