Cryptocurrencies have seen a major rise in their popularity since their inception. The possibilities that these digital currencies provide are limitless. But will these digital assets be able to replace the traditional fiat currencies in the coming future. While some believe its not quite possible, others strongly believe in the potential that is present in cryptocurrencies.
Talking to BlockPublisher regarding the possibility of cryptos replacing fiat in the future, a core member of the Verge currency, Swen van Zanten stated:
It’s definitely possible, can’t say I’m sure of course, but I do think we have a strong possibility. If we all want it, we can make it happen.
Swen seemed quite optimistic about the aspect of cryptos replacing fiat. It is quite possible that if things are handled properly, cryptocurrencies might see a large-scale emergence in the coming future. Acceptance among the general public regarding cryptocurrencies is essential in this regard.
While the possibility of cryptos completely replacing fiat is there, Thomas Power, a well-renowned personality in the blockchain world and a board member at 9 Spokes, is of the view that cryptos and fiat will likely see a mixed future.
Talking to BlockPublisher about seeing cryptos completely replacing fiat sometime in the future, Thomas stated:
No blended outcome most likely.
But before we see it happen, there are a lot of problems that are associated with this nascent market.
Issues of volatility, lack of a regulatory framework and prevalence of manipulation are some of the reasons that stop the general public and investors from entering the crypto space. One day we see the crypto market going through the roof and the next day it is down by a huge chunk. Investors usually don’t want to invest in a market that is so unstable.
Lack of an exchange traded-fund (ETF) is also one of the reasons why institutions are holding back from the crypto arena. The regulatory body in charge of approving it, the United States Securities and Exchange Commission (SEC), has not been very kind regarding a crypto-linked ETF lately owing to the issues of valuation, liquidity, custody, arbitrage, potential manipulation and other risks that are associated with this market. Once such official developments are made in the crypto world, the likelihood of cryptos entering our everyday financial structure will increase.
As of now, although there are a plethora of issues attached with cryptocurrencies, but if things go in the right direction for this market, there is still a strong possibility that they’ll incorporate our financial structure in the coming future and might even replace fiat as a whole. Again, there’s that ‘might’.