In the Near Future, Will Cryptos Pay Our Bills?

BITCOIN, the most popular cryptocurrency, seems to have presented a minor recovery over the last days. People rushed to celebrate by declaring that the recovery of the most popular digital coin has started. This is a usual reaction of people who are not experienced in the field of investing and tend to act emotionally when something different is occurring with their account.

Many people don’t like the idea of governments monetizing cryptos because they are keen on the concept of money monitoring freedom. Given the experience we have, it could be argued that there is a need for some government monitoring so that to avoid criminal actions against investors and traders.

It could be said that more and more key personalities tend to get involved in this new technology. In addition, these people tend to find ways to monitor and secure the cryptos. Precisely, on Monday, 16 April, Christine Lagarde, the head of IMF, stated that “crypto assets that survive could have a significant impact on how we save, invest and pay our bills”. Additionally, she advised policymakers to “keep an open mind and work toward ­ an even-handed regulatory framework that minimizes risks while allowing the creative process to bear fruit.” Lagarde presented the benefits of cryptocurrency in general without focusing on a particular coin.

The challenge we are facing is that there are more than 1600 cryptos, so we need to be prudent when choosing the cryptos we would like to invest in. A plethora of cryptos may confuse the investors, so it is highly recommended to carry out a thorough research before deciding to invest in any crypto.

A report from futurism mentioned that cryptocurrency might become more popular than cash. In the future, our crypto transactions, in shops and online services, will be probably processed by automated systems as crypts remove the intermediaries that could get a commission for their services. Consumers will have many benefits as the product price may decrease considering that shop owners will not have to pay commissions on the transactions.

Another possible scenario is that we might not have cash money even in our wallet. In fact, we may not even need a wallet since we will have the possibility to have our digital wallet on our smartphone or smartwatch.

The transactions will be carried out in an instance and will be very easy to send money all over the world in a couple of seconds. This technology is growing fast, and those who are involved in this field are striving to come up with the best idea so that to take advantage of probably the most innovating technology of the century. All those intelligent scientists are researching and implementing various ideas. They need just one brilliant idea that will make the cryptos concept work.

Regarding the traditional money, printing is expected to be obsolete and the next generations will regard the concept of paper money as weird. The governments will not have enough control of the country’s currency. Therefore, there will be many currencies, and that will give more power to several institutions to control each currency separately.

On the contrary, we should have in mind, the relevant challenges and threats. For instance, if this happened, then it would occur fast so the infrastructures would have to adapt quickly. Some infrastructures might fail to adapt quickly and this may create several problems. Consequently, some people may lose their assets immediately. As a result, the challenge is to be proactive regarding the several threats and try to find a framework that will enable you to adapt immediately in case the cryptocurrency replaces the cash money.

Regarding money transactions, the technology shows us the way to have faster and freer executions. However, it is not guaranteed that it will work from the beginning as there is always a trial and error phase. Meanwhile, in the optimization phase, the relevant threats and dangers should be taken into account.

Technical Analysis on ETHUSD

Based on the Ichimoku System, the price appears below the Kumo. The lines Tekan Sen, Kijun Sen and Chikou Span, seem to be below the Kumo. If the price is below the Tekan Sen, then we could consider looking for potential bearish signals.

Ethereum Daily Chart
Ethereum Daily Chart

This article was written by Marios Athinodorou, TeleTrade’s market analyst, and commentator. Among others, Marios is delivering weekly trading webinars. Sign up for upcoming webinars here.

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Marios Athinodorou

Marios Athinodorou is TeleTrade’s market analyst and commentator. Apart from being an experienced trader, Marios is an advanced technical analyst and is interested in trading psychology. He has 7 years of trading expertise in Forex and CFDs, providing insights to share with all traders. Furthermore, Marios is delivering weekly trading webinars.