An Economist says Bitcoin will Dominate the world Without Trust

According to Antoine Martin, economist Federal Reserve of New York, Senior Vice President of the Bank’s Research and Statistics Group says that customers trust companies and their currencies are at least in the US and other developed countries. Cryptocurrencies are troubled by competition with established payment methods such as cash, cheques, debit and credit cards, PayPal and others.

Martin told:

“If we lived in a dystopian world without trust, Bitcoin might dominate existing payment methods, but in this world, where people do tend to trust financial institutions to handle payments and central banks to maintain the value of money it seems unlikely that bitcoin could ever be as convenient as existing payment means.”

Martin said that solving a reliable problem would result in inconvenience and scalability cost as the process of selecting random evaluators so that the network examines transactions instead of financial institutions it is time-consuming, expensive, and enormous energy. Another problem is that there is a extreme volatility, which makes them less useful as currencies.

Another economist Michael Lee told that Bitcoin is neither is the dollar and most modern currencies.

Lee explained:

“It’s trust that the ‘worthless’ piece of paper is actually worth something to other people that makes it an acceptable medium of exchange. As a result, the price of bitcoin fluctuates with the news that vendors or firms accept or decline bitcoin as a mode of payment.”

Martin told that Bitcoin and other cryptocurrencies are still trying to improve their scalability and support so that in the future, one of these cryptocurrencies could realistically play with current payment methods.

Martin included: