A new study carried out in London has inferred that three-quarters of all the senior economists in Europe do not have the opinion that Bitcoin or other cryptocurrencies are currently or any time in the foreseeable future, a threat to the modern system of finance. The Center for Macroeconomics 3which is based in London has inferred that the cryptocurrency markets such as Bitcoin were in a bubble. This standpoint seems to be consistent with the views and opinions of chief economists in the region. However, the study sought to find out whether the cryptocurrencies should be regulated more stringently or whether they posed a risk to modern systems of finance.
A whopping 735 of the respondents in the study either strongly opposed or disagreed with the notion that cryptocurrencies such as Bitcoin represented a threat to financial systems. This they said was both on the present and in the next few years that will come. The findings of the survey were in sharp contrast with the opinions of economists from Deutsche Bank in Germany. At the beginning of this month, the bank stated that Bitcoin represented a significant crash in the economy and financial systems in the European market as early as the coming year of 2018.
Most of the respondents who took part in the research downplayed any risks that were posed to the economy by cryptocurrencies such as Bitcoin. The respondents were drawn from research teams in institutions of higher learning including University College of London and Oxford University. Currently, the total cryptocurrency market is worth slightly above $600 billion which represents just 205 more than what Facebook is now worth.
Other respondents alluded to the fact that systems that involve the cryptocurrency market are not interconnected. This reduces the likelihood of a contagion that is usually ignited by securities that are backed by the mortgage market whenever a financial crisis is imminent. However, economists say that cryptocurrencies are designed to threaten economic and financial systems in a completely different manner.
This is by undermining state institutions such as federal reserves and central banks. One of the correspondents from Bonn University, Jurgen Von Hagen, said that cryptocurrencies would only become attractive to the point of ruining the systems of finance of the currencies that are typically issued by central banks became very unstable. Hagen also noted that the widespread use of cryptocurrencies in any modern system of funding would be as a result of instability but not a cause.