The future of money isn’t bitcoin. “Despite tremendous hype over the potential for crypto technologies in money and finance – specifically, blockchain and distributed ledger technology – we see little likelihood of widespread adoption in any area in the near future,” say Barclay’s analyst in a research note.
For one, there’s the energy-hungry nature of crypto mining. Creating bitcoin, for example, has an energy requirement equivalent to that of 5.6m households according to the Bitcoin Energy Consumption Index published by Digiconomist.
In addition, the problem of inaccurate data on a blockchain is a big issue given its immutability.
“Blockchain and distributed ledgers provide means of contract or transaction enforceability without a supporting legal structure, but lack recourse or reversibility in the cases of errors or fraud,” says the bank.