Cryptocurrencies have been taking over the financial market owing to the prospects that they offer in terms of usage. The convenience presented forward by cryptos make them more and more attractive to the general public. But are we going to see cryptos completely overtake the financial world replacing fiat as a whole or are we going to see more blended outcomes in the future?
Talking to BlockPublisher regarding digital currencies, the founder and partner at Morgan Creek Digital Assets, Anthony Pompliano stated:
We already have digital currencies — 92% of US dollars are digital (not paper or physical coins). The idea that a new, cryptographically secure digital currency could gain mainstream adoption is more likely than not.
Anthony pointed out that digital currencies are already taking over as 92% of the US dollars are digital and are not in the paper form. The convenience aspect of digital currencies make them superior in the eyes of the general public as compared to fiat. The bigger question that remains in the picture is not relating digital currencies, it is related to the cryptocurrencies. The technology upon which cryptocurrency is built comes under question. The credibility and trustworthiness of the crypto market comes under the microscope if it is to prevail in the modern world.
The entire crypto market as of yet has not seen large-scale adoption owing to the issues of volatility, manipulation, lack of regulation etc. One day the market is seen rising to the top and the very next day it is seen stumbling down. Investors and general public don’t want to enter an arena that has this much instability linked to its core.
But once developments are made in this arena in the form of official acceptance from regulatory body like the United States Securities and Exchange Commission (SEC) and establishment of platforms like Bakkt takes place, cryptos will most likely get more mainstream attention.
The current fiat system is not an embodiment of perfection. Countries like Zimbabwe and Iran are witnessing their traditional financial frameworks breaking down. Cryptocurrencies, on the other hand, can prove to be of extreme benefit to revamp the global financial framework if used and handled properly. If all things go in the right direction with issues like manipulation, volatility, lack of regulations etc. handled properly, the crypto world can prove to be an extremely good candidate for replacing the traditional financial structure.
Adding on to his statements, Anthony further stated:
The bigger question is whether this new digital currency co-exists with existing fiat systems or completely replaces them.
Only time will tell how things pan out for cryptos.