The Fate of Cryptocurrencies in a Fast-Changing Financial Ecosystem
As the financial media outlets are pushing Bitcoins with all her energy, a Harvard University Professor of Economics and Public Policy Kenneth Rogoff ascribed as a crypto Evangelists and has released some publications in the field of cryptocurrency opines that, with the massive push cryptos are getting, there would be a comprehensive market takeover where cryptocurrencies could explode over the next five years, rising to $5-10 [trillion].”
He believes the usual volatile nature of the asset is not enough reason to panic.
”Bitcoin as digital gold, starting its long-term value will more likely move from $100 to $100,000”, he said.
Professor Rogoff, on the other hand, disagrees, saying that unlike physical gold, “Bitcoin’s use is limited to transactions, which makes it more vulnerable to a bubble-like collapse.
In his thoughts, he only feels the cryptocurrency’s energy-intensive verification process is “vastly less efficient” than systems that rely on “a trusted central authority like a central bank.”
Cryptocurrency being a digital currency, created and managed through the use of advanced encryption techniques known as cryptography has been gradually modifying the world of finance as well as other sectors such as e-commerce and since its creation in 2009. It irked significant investor and media attention in April 2013 when it clocked a record of $266 per bitcoin after declining by 10 times that figure in its previous two months. Cryptocurrencies are now generally gaining way into the mainstream media through the facebook owned coin Libra.
Many will not forget in a rush the wave which pulled through when bitcoin in August 2017 almost hit the $20,000 mark.
According to CoinMarketCap, Bitcoin had hit a market value of over $2 billion at its peak, but a 50% drop shortly, sparked a strong opinion poll on the future of cryptocurrencies in general especially Bitcoin. The argument now became, will these altcoins eventually takeover conventional currencies and become a world-matching currency just like the dollars and euros one day? Or are cryptocurrencies a passing phase that will not stand the test of time?
