Study by Imperial Says Bitcoin Adoption to Be “Next Natural Step for the Global Economy”
By Annebeth W, United Kingdom
A study by the Imperial College London indicates that bitcoin adoption will be the “next natural step for the global economy”.
The study called “Cryptocurrencies: Overcoming Barriers to Trust and Adoption” believes that as two cryptocurrencies have recently passed the first test out of three to become universally recognised currencies, namely acting as a store of value, it is now not long until bitcoin and ether would be able to pass the two remaining tests, namely to be used as a unit of account and act as a medium of exchange.
It will therefore be within the next ten years that bitcoin will be used by people around the world to do their shopping, the paper commissioned by the eToro exchange, predicts.
eToro, which launched its intuitive trading platform in 2009, is a known cryptocurrency advocate, it adopted cryptocurrencies on their platform in 2017 after pioneering Bitcoin trading in 2013 via CFDs. Since last year the exchange enables its clients to trade and invest in Ethereum, XRP (by Ripple Labs), Litecoin, and other popular cryptocurrencies.
One of the co-authors of the study, Professor Wiliam Knottenbelt of Imperial College London, stated that there is still “a lot of scepticism over cryptocurrencies”, and the believe “for it to become a day-to-day payment system used by the man on the street” has yet to grow. But “In this research we show that cryptocurrencies have already made significant headway towards fulfilling the criteria for becoming a widely accepted method of payment.”
The Imperial College London is a really well-regarded source, and the study comes only a week after a UK Member of Parliament called for a Chief Blockchain Officer to be included in the UK Parliament.
However, there are still some adversaries to overcome according to the study, such as the lack of technical knowledge by mainstream users, unclear or lack of regulations and the extensive use of power and time to transfer and process cryptocurrencies.
Furthermore, the reputation of bitcoin as being used by criminals and for money laundering also hinders adoption by main players in the finance sector. The Bank of England issued a warning a few days ago to London City bosses to not fall for the cryptocurrency hype as it could expose them to fraud and “reputational risks”.
Iqbal Gandham, UK Managing Director of cryptocurrency exchange eToro, is a strong believer, he stated: “Given the speed of adoption, we believe that we could see Bitcoin and other cryptocurrencies on the high street within the decade. There are of course barriers to mainstream adoption, but they are far from insurmountable.”
Dr. Zeynep Gurguc, Professor at Imperial College London and co-author of the paper added: “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”.
This is a great prediction by a well trusted source and very well received by the crypto space as it is an optimistic and technically sound report, many happy recipients see this as a great voice to counter the criticism the sector receives.