CRYPTOCURRENCY THE FUTURE MONEY

Prasad predicts that cryptocurrencies will help make payment systems more efficient. Typical cryptocurrencies, like bitcoin, are decentralized. And unlike stablecoins, these other cryptocurrencies are not backed by any reserve asset. Most times, their value is derived from supply and demand. Bitcoin, for example, launched in 2009 with the intent to work as a peer-to-peer financial system. Its blockchain was carefully created and has a well-thought-out ecosystem. Bitcoin also has a limited supply, which allows for built-in scarcity by design. Because of that, it’s seen as a store of value by its holders. One reason cryptocurrencies could make payments more efficient is because they can allow for quick and transparent cross-border financial transactions, Prasad says. That could be helpful in a number of situations, especially for those who need to send money to family overseas. However, most cryptocurrencies are very volatile, which could hinder their long-term success as mediums of exchange, Prasad says. Because of this instability, cryptocurrencies will likely not be used for daily transactions.