fbpx
Money

New Report Reveals Massive Bitcoin Backing

Bitcoin and cryptocurrency have been handed huge support this morning from researchers at Imperial College London, who have said digital currencies are primed for mass adoption.

According to the report — entitled “Cryptocurrencies: Overcoming Barriers to Trust and Adoption” — bitcoin and cryptocurrencies will hit the mainstream as a way of paying for goods and services within the next decade.

The backing of the researchers could boost the price of bitcoin and cryptocurrencies, which many have accused of being less well suited to handling mass payments than the traditional financial system, run by the likes of Visa and MasterCard.

“The world of cryptocurrency is evolving as rapidly as the considerable collection of confusing terminology that accompanies it,” said Imperial professor William Knottenbelt.

“There’s a lot of scepticism 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.”

The report, paid for by brokerage eToro, found cryptocurrencies are already equipped to fulfil one of the three fundamental roles of traditional fiat money: acting as a store of value.

The three criteria for mass adoption the researchers laid out are:

  • Store of value: allowing individuals to make intemporal choices on when to spend their purchasing power
  • Medium of exchange: facilitating the exchange of goods and services by eliminating the inefficiencies associated with a barter economy
  • Unit of account: acting as a measure of value in the economic system.

According to the report, “meeting the last two criteria will require bitcoin and other cryptocurrencies to make progress on remaining challenges such as scalability, design and regulation.”

“The first email was sent in 1971, but it took nearly three decades for the technology to become commonplace with a user-friendly interface in the form of hotmail,” said eToro’s UK managing director Iqbal Gandham.

“The first ever bitcoin transaction took place a little over eight years ago and today we are already seeing it begin to meet the requirements of everyday money. 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.”

Imperial’s Zeynep Gurguc, who co-authored the report, said: “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 bitcoin price has — along with most other cryptocurrencies struggled to find footing in recent months after an eye-watering 50 percent sell-off at the beginning of the year.

However, in recent weeks the bitcoin price has jumped multiple times — giving some holders hope of a return to the bull market.

This story originally appeared in Forbes. Image courtesy of Twitter.

Join The Discussion

At Least 70 Killed In Major Bangladesh Fire
At Least 70 Killed In Major Bangladesh Fire [Video]
Trump Ends Shutdown, Signs Bill To Reopen Government
Trump Ends Shutdown, Signs Bill To Reopen Government [Video]
Melbourne Expecting 44C As Victoria Faces Hottest Day Since Black Saturday
Melbourne Expecting 44C As Victoria Faces Hottest Day Since Black Saturday
Maduro Rival Guaido Claims Venezuela Presidency
Maduro Rival Guaido Claims Venezuela Presidency [Video]
Onecoin Is Ashes But Investigations Continue To This Day
‘Bitcoin Killer’ Onecoin Is Ashes But Investigations Continue To This Day
Cryptocurrency Market Volumes Reach Nine-Month High
Cryptocurrency Market Volumes Reach Nine-Month High
United Kingdom Does Not See Utility Token As Securities
United Kingdom Does Not See Utility Token As Securities
How To Put Crypto In Everyone’s Pocket In 2019
How To Put Crypto In Everyone’s Pocket In 2019
The Future Of Online Shopping
The Future Of Online Shopping
10 Marketing Trends To Watch In 2019
10 Marketing Trends To Watch In 2019
40+ Video Marketing Statistics For 2019
40+ Video Marketing Statistics For 2019 [Infographic]
Emerging Email Marketing Trends To Survive 2019 And Beyond
Emerging Email Marketing Trends To Survive 2019 And Beyond [Infographic]
YouTube Introduces One-Time Warning, New Strike Penalties
YouTube Introduces One-Time Warning, New Strike Penalties [Video]
The Latest Social Media Automation Rules In 2019
The Latest Social Media Automation Rules In 2019
4 Tips To Help You With The Constant Changes In Social Media
4 Tips To Help You With The Constant Changes In Social Media
Instagram's Testing Side-Scrolling Feed View, Similar To Stories
Instagram’s Testing Side-Scrolling Feed View, Similar To Stories
9 Questions To Ask Your Network To Help You Find Your Path
9 Questions To Ask Your Network To Help You Find Your Path
What Is Your Therapist Listening For
What Is Your Therapist Listening For?
Wish You Were Smarter
Wish You Were Smarter? These 4 Brain Hacks Can Help You Get There
Weightlifting Less Than An Hour Per Week Could Increase Your Longevity
Weightlifting Less Than An Hour Per Week Could Increase Your Longevity
At Least 70 Killed In Major Bangladesh Fire
At Least 70 Killed In Major Bangladesh Fire [Video]
YouTube Introduces One-Time Warning, New Strike Penalties
YouTube Introduces One-Time Warning, New Strike Penalties [Video]
Trump Ends Shutdown, Signs Bill To Reopen Government
Trump Ends Shutdown, Signs Bill To Reopen Government [Video]
Samsung Galaxy S10 Bitcoin Wallet Leaked By Insider
Samsung Galaxy S10 Bitcoin Wallet Leaked By Insider [Video]