Recent research showed that the amount of time needed for cryptocurrency to replace traditional money might be a lot less than expected. The Independent shared that the emerging cryptocurrency market has already passed the first step in becoming a valid replacement for traditional currency.
Social trading platform eToro along with Imperial College researchers came up with certain criteria that make up the traditional currencies we have today and what cryptocurrency needs to do in order to fill that role. Imperial researcher Dr. Zeynep Guruc specified six challenges that cryptocurrency will be facing in their report namely: “scalability, usability, regulation, volatility, incentives, and privacy.”
What cryptocurrency was able to fulfill was the criteria ‘usability’, which is to act as a store of value. Imperial professor William Knottenbelt explained that cryptocurrencies could pass the different criterion and that progress is being made.
“There’s a lot of skepticism 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.”
Cryptocurrencies ‘usability’ is proven by the popularity of crypto exchanges where millions of transactions occur each day, as well as by business payments that are occurring around the world.
However, cryptocurrencies will first need to overcome specific roadblocks like scalability and regulation for it to be considered a legitimate replacement for traditional money. Despite the obstacles that cryptocurrencies have yet to overcome, eToro managing director Iqbal Gandham is feeling optimistic about its place in the future.
“Given the speed of adoption, we believe that we could see Bitcoin and other cryptocurrencies on the high street within the decade.”
The eToro director added:
“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.”
Exponential Growth & Benefits
The rise of cryptocurrency meant many things including the benefit of smoother, faster and more cost-efficient transactions as well as convenience and efficiency brought by its decentralized nature. While cryptocurrency vies for a position of becoming the next viable medium of exchange, other countries are already adopting thousands of crypto ATMs signaling its already ongoing mass adoption.
AustralianTimes, previously, reported that the number of cryptocurrency ATMs in the United Kingdom alone is rapidly rising. There are already over 150 Bitcoin ATMs littered across the U.K. while Austria has 160 Bitcoin ATMs of their own.
As for the rest of the world, the number of Bitcoin ATMs are, reportedly, more than 3,000 already, which just shows how widespread cryptocurrencies are already becoming. At this rate, it’s likely that it might not be that long before the general populace adopts cryptocurrency.