Cryptocurrency has been on the receiving end of different kinds of views often negative ones. However, it has been positively mentioned in a ray of good news.
Professor Dragan Boscovic of the Arizona State University (ASU) discussed Bitcoin’s future from a trading perspective. The Professor is of the opinion that investors regard Bitcoin as a valued investment opportunity.
Boscovic is a computer science research scholar at ASU. He is also the director of the Blockchain Research Lab which intends to grow the development of blockchain-based technology’s applications. In an interview with ASU Now, the scholar delves into the subject of Bitcoin as an investment asset.
Bitcoin New Beginning
Two main futures exchanges, CBOE and CME group started offering bitcoin futures in December last year. The launch of the futures marked a new beginning in the way Wall Street viewed the cryptocurrency industry. It was the start of allowing for a gradual but definitive entry into mainstream adoption of the industry.
More progress was to be witnessed at the beginning of this year, the Intercontinental Exchange (ICE) announced that it was developing a cryptocurrency data feed. The service gives access to financial companies to real-time streaming, historical or end of day data to the most actively traded digital currencies.
Even though cryptocurrencies are still regarded as new, they have been existing for almost a decade now. Boscovic feels this is well within the normal time frame for a new technology to gain traction. He notes that the industry now sees an opportunity to offer a new asset for trade to increase variety for investors.
Difference Between Cryptos And Fiat
According to Boscovic, the main difference between cryptos and fiat is that unlike fiat cryptocurrencies cannot be directly influenced by governments. He explains that volatility of the digital currency is dictated by demand and therefore cannot be influenced by additional supply. Whereas, a government can introduce a new supply of traditional currency thereby affecting the market.
To the consumers, cryptocurrencies create variety since it is an intangible asset which brings along further investment opportunities.
Bitcoin has been touted as a disruptive technology. It has disrupted the largest and most interconnected marketplace in the world such as money, banking, and finance. Hence, making it arguably the most promising investment of our age.
The financial system has become increasingly unstable and unpredictable while Bitcoin is based on the 21st-century technologies. The digital currency and clearing network boast’s as open source, mobile, peer-to-peer, cryptographically protected, as well as native to the internet. The integration of such technologies, enable a level of security and efficiency that is not common in the world of finance.
Bitcoin-oriented technology has the potential to compete in various markets. It can directly compete in markets such as electronic payments, e-commerce, hedge fund, remittance, cash, gold, and offshore deposits markets.
Boscovic predicts that Bitcoin’s acceptance into traditional investment instruments creates a pathway for other cryptocurrencies to follow suit. He explains that since institutional investors are recognizing this new asset as a valued investment opportunity, it will, in turn, encourage consumers and other small shops to start trading in cryptocurrencies.
He confirmed that Bitcoins inclusion in the New York Securities Exchange offers a serious confidence boost to Bitcoin’s legitimacy.