According to a joint study of Imperial College London (ICL) and the eToro investment platform, cryptocurrencies are “the next step in the evolution of money” and are on the way to becoming a full-fledged means of payment.
Researchers analyzed the fundamental role of traditional currencies and estimated how much the cryptocurrency is close to matching with it.
Among the main criteria experts see the ability to act as a repository of value, as well as a means of exchange and accounting. Bitcoin and other cryptocurrencies already act as a repository of value, as millions of people use them as such. In order to meet the remaining requirements, cryptocurrencies need to overcome the problems of scaling and regulation.
“Cryptocurrencies develop as fast as a significant set of terminology that accompanies them. Decentralized technologies can improve everything that is now used in financial systems and financial assets, “ICL professor William Knottenbelt said.
“Today, many skeptics deny the possibility of using cryptocurrency as a daily payment system. However, our study showed that cryptocurrencies have already made significant progress in meeting the basic conditions in order to become a generally accepted method of payment. “
“New payment systems or asset classes do not appear overnight. The concept of money is constantly evolving, and even now the process of replacing paper money for digital or contactless payments is underway. Cryptocurrency and cryptocurrency assets are the next natural step if they manage to deal with certain problems: scalability, usability, volatility and confidentiality, “Dr. Seiner Gurguk from ICL said.
Researchers note that every step in the evolution of money makes the payment process easier. That's why the technology of cryptocurrency makes them the next natural step in reducing of payment friction.
One of the possible ways to use cryptocurrency in the near future may be cross-border transfers, which today are expensive and, most importantly, very slow. To date, the decentralized nature of cryptocurrency already copes with these tasks much more effectively.
“The history of money is the history of the evolution of technologies that replace the old ones in order to improve the transfer of value from one person to another. Cryptocurrencies are the next step along this path, “Iqbal Gandham, managing director of the eToro's UK branch, said.
“Given the speed of acceptance of cryptocurrencies, there is every reason to believe that in the next decade, bitcoin and other cryptocurrencies will become the main payment systems.”
Now, let's move to the technical analysis of Bitcoin(BTC):
Bitcoin confirmed our yesterday's forecast, moving further down to the support level of $6,200. Having stopped at this level, it continues to consolidate. It creates the impression that it wants to continue its downward movement without jumping to the next support level of $5,750.
Technical analysis of Ethereum (ETH):
Ethereum continued to move simultaneously with our yesterday's forecast, it jumped to a resistance level of $442. Then, it rushed down, reaching a mark of $420. Today it is trying to develop a further downward movement, striving for a support level of $400. This level is very strong, from both technical and psychological points of view.
Technical analysis of Ripple (XRP):
Ripple did not jump yesterday, which means that the buyers are weak. Ripple continues to move down within our yesterday's forecast. Its minimal goal is the level of $0.41, and the maximum one - the support levels of $0.35-$0.37.