Cryptocurrencies have taken the global financial framework by storm, but are they going to persist as the time passes on, or is it just a wind that is blowing really hard right now and is eventually going to die out? Crypto analyst Eric Thies shares his views.
In an exclusive talk with BlockPublisher, Eric Thies stated:
I’m a huge advocate that crypto is premature for itself as of now. The world is becoming more and more digital… virtual reality could very well become our main reality some day & we will need a digital form of currency to pass around.
Eric seemed strongly of the view that cryptos have a lot of potential in them. The prospects they offer cannot be denied at all. The entire financial framework of the world can be restructured and revamped if cryptos are used properly. The entire financial ecosystem of merchants and customers across the world can be redefined.
While the aspect of cryptos replacing fiat in the future is lingering around, but as suggested by many experts, a complete replacement is highly unlikely. Eric suggested that both fiat and cryptos are necessary for each other to survive.
I’m hysterically bullish on crypto as a whole. While I think people are looking for one or the other, I’d argue we will never have one without the other again.
The argument that cryptos will totally overtake the traditional financial framework seems to be too ambitious. Although limitless possibilities are offered by cryptos, the complete overtake of a well-established fiat currency framework is unlikely. However, a mixed future is certainly quite possible.
The ease of usage that cryptos provide is exactly the thing that is desired by most of the people. But as of now, there are a lot of problems that are a part of this nascent market. Issues like the prevalence of illegal activities, manipulation and volatility have made the acceptance of cryptos difficult. Manipulation by big whales brings the trustworthiness of this market in question. Volatile price jumps day in and day out make this market unattractive for most of the investors. Lack of a regulatory framework further gives flight to the prevalence of illegal activities in the market.
But as the time passes, developments are being made in the form exchange-traded fund (ETF) proposals and incorporation of regulatory frameworks, such as in the case of the Gemini dollar. Moving forwards, although cryptos might not completely overthrow the throne occupied by the fiat currencies, they will surely play a major role in modern financial framework.