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Recently, Marion Laboure, an analyst and senior economist at Deutsche Bank, published a study on digital currencies and their potential in shaping the future of global payments.
Bitcoin and Ethereum are already used in stores as forms of payment, however, according to Laboure, they are not so common due to the long transaction time, high transaction fees and high volatility. A Bitcoin transaction, for example, requires 10 minutes to confirm and pay a $20 commission.
It is worth noting that organizations are not required to accept digital currencies as a means of payment, since they are not supported by the state.
Nevertheless, the economist is of the opinion that bitcoin can become the digital gold of the 21st century. The high cost and limited emission makes it a popular means of protection against inflation.
However, BTC will be volatile in the future for three reasons. Approximately 66% of bitcoins are used for speculation and investment. In addition, the balance of supply and demand of BTC is not affected by random large purchases and market closures, since BTC has a limited “circulation opportunity”. The BTC price is also largely influenced by the sentiment of investors and crypto enthusiasts.
If we talk about Ethereum, the expert sees it as digital silver due to its widespread use on the DeFi and NFT platforms. She added that cryptocurrencies such as Polkadot, Solana, Binance and Cardano can seriously compete with Ethereum.
Labur noted that the lack of regulation is a serious disadvantage for all digital currencies. This scares off many investors, although it seems profitable to risk cryptocurrency. In this regard, Deutsche Bank analysts expect that by 2022 many countries will create a solid regulatory framework for cryptocurrencies.
Laboure is confident that cryptocurrencies, digital currencies of central banks (CBDC) and cash will coexist without replacing one with another.?However, according to her, the use of cash may decrease as the use of CBDC and cryptocurrencies increases.
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