Bit Coin’s role in the future of finance
Published: 2021-02-19 05:45:05

The advantages of gaining technical skills outpaces the financial industry. The emergence of bitcoin in the year 2009 led to the interest towards cryptocurrencies. Perhaps, cryptocurrencies emerged as one of the biggest revolutionary transformation in the industry of finance. Cryptocurrencies can be defined as a digital currency which are developed and governed by state-of-the-art encryption methods referred to as cryptography. As per a survey from Investopedia, more than 2000 cryptocurrencies existed during January 2020. Majority of the bitcoins and the tokens gained immense vogue among committed investors.  The potential of cryptocurrencies lies in providing several things to several people to suit their need.
Economists profess that the payment methods furnished by the cryptocurrencies seem better than that of the conventional payment methods. They also claim that cryptocurrencies also grant access to financial services which is not even offered to people in conventional banking. The strength of the cryptocurrencies exists in their intramural characteristics and each of them are distinct in the operating process. They are (1) Blockchain technology (2) potential with respect to peer-to-peer payments (3) potential to substitute investments and (4) potential to substitute fundraisers. 
Most of the cryptocurrencies depend on block chain technology and advanced cryptographic methods. Cryptocurrencies are the widely accepted application of blockchain technology. If cryptocurrencies utilize blockchain technology, it denotes that the amount can be disseminated without the mediation of banks and the financial companies can manage the payments. A blockchain contains a database where a group of information will be digitally stored in a computer. 
Typically, blockchain can be considered as an electronic ledger that is capable of storing large databases. The major difference between blockchain and a conventional database lies in the way the data is stored. Data will be stored in the blockchain in a structured manner with a timestamp. Economists predict that the future of payments could be cryptocurrencies. As per their research, a huge transformation can be noticed once the market glimpses institutional money. They also predict that once cryptocurrency gets floated in the National Association of Security Dealers Automated Quotations Exchange (NASDAQ), there is a certainty observed in the growth of blockchain’s credibility. The cryptocurrencies in future can be a certain replacement for the traditional currency system. Further, if the bitcoins are substantiated with ETF or Exchange Trade Fund, most of the people are expected to make their investments in Cryptocurrencies. 
In the next five years, cryptocurrencies are expected to dominate the market where the growth can be around $5 to 10 trillion. If these researches furnish fruitful results in the future, cryptocurrencies will rise as an effective payment method which could strongly influence the policy implementation process which in turn the banking systems may lose complete control over the supply of money. 
If banks accept to adopt cryptocurrencies, they can predict the demand of money quite easily by observing the liquidity of funds and can regulate the supply based on that. These factors could be advantageous to the finance companies other than banks if the banks fail to adopt cryptocurrencies. The future of cryptocurrency also depends on the government decisions and policy makers. If governments support cryptocurrencies by reducing the amount of taxes or tax friendly rules similar to Japan, there will be certainty for a massive growth to the cryptocurrencies in the future.