After Intercontinental Exchange (ICE) announced its intent to build a cryptocurrency trading platform, industry observers ascertained a shift from the financial industry’s mistrust of the volatile digital asset to widespread institutional adoption.
Cryptocurrencies to Become “Alternative-Investments”
In an interview with ASU Now, Dragan Boscovic, Director of Arizona State University’s Blockchain Research Lab, revealed the cryptocurrency industry’s steady foray into the institutional world and lent insight on the asset’s legitimacy.
As per Boscovic, the decade-old technology of cryptographic money has given rise to other platforms and concepts not necessarily functioning as peer-to-peer alternatives to fiat. This aspect is noted by central authorities who consider the asset class as a new investment opportunity.
The blockchain researcher was more focused on the monetary aspect of digital assets instead of their underlying technology:
“From an investment perspective, cryptocurrency is considered an asset, and as such, it is traded as a commodity. Just like we trade precious metals like gold or silver or platinum, we can look at cryptocurrencies in the same way. In other words, the NYSE now looks at cryptocurrency as an investment option in the same way it treats gold as a commodity.”
Deflationary Benefits of Cryptocurrencies
Boscovic believes that consumers now have a digital alternative for traditional investments such as precious metals or land, which provides an “accompanying proof of ownership” wholly based on investor demand.
The researcher noted that central authorities could influence traditional assets by increasing supply, but cryptocurrency’s limited supply completely prevents such behavior.
In his view, digital currencies will be available on ICE’s platform in the same way as traditional assets. Boscovic noted that bitcoin’s acceptance by a renowned organization “will open the door for other currencies.”
“It’s a very positive development in the sense that it injects confidence into the marketplace,” said Boscovic,