A study conducted by researchers at the Imperial College London shows that cryptocurrencies are likely to become a widely used means of payment in just ten years.
Titled “Cryptocurrencies: Overcoming Barriers to Trust and Adoption”, the research paper was written by the director of the Center for Cryptocurrency Research and Engineering at the Imperial College London Professor William Knottenbelt and Imperial College Business School’s Dr. Zeynup Gurguc. The researchers believe that cryptocurrencies are already acting as a store of value just like fiat currencies.
At the same time, cryptocurrencies are yet to gain certain features in order to become widely usable units of account or mediums of exchange, as they still need much improvement in various areas including design and scalability, it is said in the report.
Many of the currently existing cryptocurrencies are built on blockchains which are not capable of handling high transaction volumes. Another drawback to be addressed comes from rather complicated interfaces which, in most cases, require some specialist knowledge from the users thus narrowing the potential audience.
Additionally, cryptocurrencies will also have to adopt more user-friendly designs to make them usable by those who do not possess specialist knowledge of them. Price movements of cryptocurrencies will also have to stabilize and become less volatile if they are to be widely adopted. Having a standardized regulatory approach across the globe will also assist substantially.
Both researchers, nevertheless, do not regard the obstacles above as insurmountable ones.
“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,” – Prof. Knottenbelt wrote.
Paradoxically enough, the researchers are much more optimistic about the future of cryptocurrencies than the supposed time traveler who claimed that digital currencies will fully substitute fiat only by the 3200 in a bizarre video footage back in March 2018.