Marion Laboure, one of Deutsche Bank’s senior economists, recently said that it’s impossible to overlook the $2 trillion cryptocurrency economy. Her opinions came as a part of a recent interview published on the website of Deutsche Bank. In the research-based interview, Laboure highlighted the potential of the world’s two biggest cryptocurrencies – Bitcoin and Ethereum.
Laboure stated in the report that despite a high rate of adoption, both Bitcoin and Ethereum are yet to become mainstream payment modes. The reasons for that are the high transaction fees and the long transaction times. For instance, it takes around 10 minutes for Bitcoin to validate a single transaction and at $20, the transaction fees are quite high.
Laboure was also asked in the interview about the differences between fiat currencies like the dollar and cryptocurrencies. In her reply, she stated that the only major difference between cryptocurrencies and fiat currencies is that cryptocurrencies aren’t government-backed. That’s why people have no legal obligations to accept cryptocurrencies as means of payment.
She also put forward some insightful reasons as to why Bitcoin’s future is set to be more tumultuous than its past and present. The reasons included Bitcoin’s use for speculation and investment, the cryptocurrency’s limited tradability, and the influence that investors’ attitudes have on its market value.
Laboure also stated that Bitcoin is the digital gold of the 21st century, whereas Ethereum is digital silver. While Bitcoin’s market value is significantly greater than Ethereum’s, the latter still has an important role to play when it comes to NFTs and DeFi.