The Strategist

Opinion: Bitcoin will become the main means of payment in 10 years

07/12/2018 - 12:58

In the next ten years, Bitcoin and other crypto-currencies will become the most common way of paying for various goods and services, believes a group of researchers from Imperial College London and the eToro investment platform, who published a paper on the topic.

Francis Storr
Francis Storr
Like any new technology, crypto-currencies need considerable improvement, Zeynep Gurguc, a researcher at the Imperial College of London, notes: "New payment systems or asset classes do not appear overnight, but our study has shown that crypto-currencies have already made significant progress in meeting the basic conditions in order to become an accepted method of payment."

The researchers are sure that the massive adoption of crypto currency will come in a decade. The theory of money regularly evolves, and even now the process of replacing paper money for digital or contactless payments is in progress. According to experts, in order to make digital money the main means of payment, the world must solve six related problems: scalability, ease of use, regulation, volatility, incentives and confidentiality.

"The world of crypto currency is being perfected as rapidly as the impressive set of confusing terminology accompanying it. Decentralized technologies can turn upside down all our ideas about the nature of financial systems and financial assets," said William Knottenbelt, professor at the Imperial College of London.

"The very first e-mail was sent back in 1971, but it took almost three decades for the technology to become operational due to the convenient interface of Hotmail. The first transaction in the history involving Bitcoin took place just over eight years ago; to date it is already noticeable that it begins to meet the requirements for money, and we believe that Bitcoin and other crypto-currencies will become generally accepted in the society during the next decade. Of course, there are still some barriers, but all of them are surmountable," Iqbal Gandham, CEO of eToro, said.

Bitcoin is the currency of the Internet and can now be used advantageously when sending international money transfers, said Bart Smith, head of the digital assets division of Susquehanna International Group, in a CNBC comment.

"Western Union and traditional banks are slow, expensive and can block your transfer. But sending money via bitcoin is fast and convenient, and, among other things, no one can stop me," Smith said.