How cryptocurrencies will shape the future of finance: Deutsche Bank report – Times of India

How cryptocurrencies will shape the future of finance: Deutsche Bank report – Times of India

NEW DELHI: The $2 trillion crypto economy is impossible to be overlooked, both for the common people and analyst and senior economist at Deutsche Bank Research, Marion Laboure.
She underscored useful insights about the potential of two most important cryptocurrencies – Bitcoin and Ethereum – in shaping the future of payments globally in a recent research-based interview published on the Deutsche Bank website.
The worth of Bitcoin and the challenges faced by the currency in adoption.
In the report, Laboure said that Bitcoin and Ethereum are being accepted in many shops currently but are still not common forms of payment due to the long transaction time and high transaction fee.
Bitcoin takes 10 minutes to validate a transaction with a transaction fee of $20 currently, making it a less popular choice.
On being asked how Bitcoin is different from dollar or any other fiat currency, Laboure said Bitcoin or other cryptocurrencies are not backed by the government, due to which people are not legally obliged to accept it as a means of payment.
According to her, Bitcoin has the potential to become Bitcoin 21st century gold. Like gold, Bitcoin has deflationary properties. It’s not used widely as means of payment and is highly volatile.
She believes that it will be more mercurial in the coming times due to the following reasons :
* About 66 per cent of Bitcoins are used for investments and speculation.
* The rare large purchases or market
Source…