A new survey by the Royal United Services Institute and ACAMS appears to reveal the most popular use cases of Bitcoin and cryptocurrencies in future. It seems to have ruffled a few feathers, while also strengthening few of the market’s prevailing narratives. The survey revealed that a majority of the respondents associated with either the government or financial institutions, private or otherwise, think of Bitcoin and cryptocurrencies as a risk, now and in future, rather than as an opportunity. But that’s not all.
The survey also showed that professionals in the cryptocurrency industry believe that investment and speculation will be the primary use of cryptocurrencies in the next five years. While a few still think that day-to-day payments will be a popular use case, the survey shows it won’t be the most popular one five years from now.
With regard to the worldwide use of cryptocurrencies, the survey found that: “Three-fifths (58%) of all participants believe that cryptocurrency is mainly used for investment and speculation, with illicit purposes ranking overall at number two. When respondents are split into their respective occupations, every sector ranks investment and speculation first.”
This is really interesting, and it’s in line with prevailing perceptions since over the past few years, cryptocurrencies like Bitcoin appear to be evolving from their initial premise. Instead, a store of value narrative has taken precedence. This has been fueled by the fact that Bitcoin has had scalability issues for ages.
Even so, many maximalists on Twitter have not accepted to call the cryptocurrency a digital commodity, with some even call it Bitcoin “digital gold,” a phrase that became popular after Nathaniel Popper published his book, “Digital Gold” in 2015.
However, some believe that crypto’s volatility has prevented it from becoming a fiat alternative, let alone a true medium of exchange. In fact, the survey showed: “The industry generally agreed (69%) that the value of cryptocurrencies is currently too volatile to be an effective alternative to fiat currencies.”
This wasn’t all. While 76% of the respondents associated with crypto said that they should be considered legal tender, only 37% of government professionals agreed with that. This may be due to the fact that as mentioned before, trust in cryptocurrencies remains perilously low institutionally, with many still under the impression that cryptocurrencies’ main use lies in illicit fund transfers.