Eva Bienkowski

10.07.2018 18:23

Cryptocurrencies could turn into prevalent payment method in the next 10 years

Latest academic research conducted by Imperial College London claims that cryptocurrencies like Bitcoin already possess at least one characteristic of traditional fiat currencies. Professor William Knottenbelt and Dr. Zeynep Gurguc are proving in their studies that cryptocurrencies have a store of value, which is one of the three criteria of traditional money.

Imperial College London

Imperial College London

Apart from that, common money should be a medium of exchange, and a measure of value in the economic system. Researches name scalability, design and regulation to be the remaining challenges for cryptocurrencies to become a mainstream payment method.

Researches explain that throughout money evolution process, forms of money were changing but the three basic features remained unchanged. In their point of view, cryptocurrencies are the next natural evolutional and technological step of traditional money, which is characterized by reduced payment friction.

The research emphasizes that popularization and spread of cryptocurrencies is a logical evolutional step that will mitigate friction in the global economy.

"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, “

said Professor Knottenbelt.