Given the pendular-like behavior in the prices of cryptocurrencies in the last three months, it is not surprising that some investors, particularly those with less experience, are doubting the long-term viability of digital assets.
However, experts in the field argue that the Blockchain technology is here to stay, and some even say that in a few years the altcoins will replace the fiduciary currencies in some countries.
Such is the case of Thomas Frey, visionary and futurist at the DaVinci Institute and Google's top rated futurist speaker, who believes that many countries around the world will switch to cryptocurrencies as their legal tender in the next decade or so.
“Cryptocurrency is very much here to stay,” said recently Frey to Money, adding that he believes “cryptocurrencies are going to displace roughly 25% of national currencies by 2030. They’re just much more efficient, the way they run.”
As we were saying, it's understandable that some people questions the functionality of the digital economy, but it is also impossible to ignore the billions of dollars that are currently invested in cryptocurrencies. Until this Tuesday, the capitalization of the cryptocurrency global market was about $350 billion USD.
And it is a fact that one of the biggest losers with the development and growing of the digital market would be the banking system, because the adoption of such an innovative economy would mean massive losses in their profits.
“When people like [International Monetary Fund managing director] Christine Lagarde say cryptocurrencies could displace central banks and international banking, that’s very significant,”, said Frey.
And the fact is that the lack of intermediaries –which means saving money in commissions– is part of what makes cryptocurrencies remarkably attractive, although for now it's almost impossible to determine which of the hundreds of altcoins available in the market will stay around.
“The future of commerce will be shaped by the crypto supply chain, which will have less friction and more exponential value between buyers and sellers of all products,” also said to Money James Canton, of the Institute for Global Futures.
The crypto market still needs to improve on many things, mainly in terms of security for its users. Although the libertarian ideal of decentralization is another appealing feature for this sector, it's also true that regulation could help to improve the cryptocurrency market.
“There’s a role for governments to participate, but I do think too much regulation will be intrusive.”, said Canton.
By Alejandro Cortés