Physical cash had toppled many concepts before it came into existence. The age-old Barter System was rendered incapable of handling the monetary issues of the economies. Money earns its legitimacy from its respective countries. The emergence of a digital currency that would threaten physical cash’s very existence could not be thought of just a decade back. However, in 2021, as a human population, we stand in the middle of the issue as we debate the possibilities. Can Cryptocurrency replace physical cash?
Many analysts have asked this question time and again. Let us see what factors work in favour or against such a proposition.
- Centrally Authorized: Fiat currency is a centrally authorized currency. Every country has their currency. In India, currency notes are known as Rupees, whereas the notes are called Dollars in the US. They came into existence when the government of the nations accepted them universally. The dollar influences the market, causing inflation or deflation. No country is untouched by the effects of it.
Bitcoin, or other Cryptocurrencies, on the other hand, are not centrally regulated. They do not fall under the jurisdiction of the countries or governments. The launch of Bitcoin was aimed at bridging the socio-economic disparity. The anonymous developer of Bitcoin, Satoshi Nakamoto, went on to harness the enormous potential of Blockchain Technology. He devised a system wherein the investors will make all transactions without the interference of any third party.
Cryptocurrency transactions do not require the authorization of any central institution of any capacity. The market forces of the leading economies do not influence the rise and fall in the value of Bitcoin. The investors and stakeholders are the deciding factors in this case. It is only affected by their financial activities. Then click here discusses these points in detail before a beginner embarks on their investment journeys.
- Reliability: Physical Cash falls under the purview of the governing bodies of various countries. They are universally accepted. It is upon the consensus of the population that cash came into circulation in the first place. It is easy to use since it is readily acceptable. It is not the same for Cryptocurrency. It is only accessible to people who are well aware of the workings of the Internet. In most third world countries, there is little to no awareness regarding Cryptocurrencies and the likes. To be able to use Cryptocurrency, the sender should be able to access their Cryptocurrency wallet. This requires a stable Internet at all times.
To receive the payment, the recipient too will need a wallet with a public and private key. There are very few companies worldwide that accept payments in the forms of Bitcoin or other Cryptocurrencies. Tesla is one of the pioneering companies to have announced the acceptance of Bitcoin in exchange for their automobile. Many companies have also spoken up against the enormous amount of energy that goes into mining these Cryptocurrencies.
- Tangibility: Cryptocurrency is a value-based currency. One cannot touch it or access it with one’s bare hands. Thus, physical cash makes it easy for people to put their trust in it. Cryptocurrency is treated more like a concept by a large portion of the population. To see one’s Cryptocurrency, they will have to look into their Crypto wallets.
- Transactional Time: Amidst all uncertainty enshrouding Cryptocurrency, what makes it a likeable investment option for most millennials is its quick action. Millennials have everything a click away at their fingertips. Cryptocurrency is, thus, the closest to expectation. They would instead make transactions in Crypto than standing in queue for banks to drop or collect cheques. Sending money beyond the borders is also made easy by Cryptocurrencies.
Thus, we can safely conclude that Cryptocurrency will replace physical cash. It may take a while. But, there are glaring chances of that taking place sometime in the future. We cannot dispense with the possibility.