What will the future of money look like? Imagine going into a restaurant and looking at the digital menu on the combined menu in your favorite combination. Alone, instead of being priced at $ 8.99, it appears as 009 BTC.
Can crypto really be the future of money? The answer to this question is based on a general consensus on various decisions ranging from ease of use to safety and regulation.
Let’s look at both sides of the coin (digital) and compare and contrast fiat money with traditional money cryptocurrency.
The main and most important component is trust.
It is essential to trust the currency that people use. What gives the dollar value? Is it gold? No, the dollar has not protected gold since the 1970s. So what gives value to the dollar (or any other currency trust)? The currency of some countries is believed to be more stable than others. Ultimately, it is the people’s confidence that the government issuing that money is firmly behind it and basically guarantees its “value”.
How does trust work because it is decentralized to Bitcoin because it is not the governing body that issues coins? Bitcoin is in the blockchain, it’s basically an online accounting book that allows the whole world to see all the transactions. Each of these transactions is verified by miners (people who work on computers on peer-to-peer networks) to prevent fraud and also to ensure that there is no double spending. In exchange for services to maintain the integrity of the blockchain, miners receive a payment for each transaction they verify. Since there are so many miners trying to make money, they are all looking for mistakes. Because of this proof of the work process, the blockchain has never been hacked. Basically, it is this trust that gives Bitcoin value.
Below, let’s look at the closest friend of trust, security.
What if I rob the bank or there is fraudulent activity on my credit card? Bank deposits are covered by FDIC insurance. Chances are my bank will refund any charges I have ever made on my card. That doesn’t mean criminals won’t be able to at least be disappointed and take a lot of time to make progress. Roughly because of the wrongs against me, the peace of mind that comes from knowing that I will be fully formed gives me peace of mind.
In cryptography, there are many options when it comes to where to store your money. It is essential to know that transactions are insured for your protection. There are reputable exchanges like Binance and Coinbase that have a proven track record of correcting mistakes for their customers. Just as there are fewer reputable banks around the world, the same goes for cryptography.
What happens if I throw a twenty dollar bill on the fire? The same goes for crypto. If I lose my login credentials with a particular wallet or digital exchange, I will not be able to access those coins. Again, I can’t stress enough the importance of doing business with a reputable company.
The next number is scaling. Today, it can be the biggest obstacle that prevents people from making more transactions in the blockchain. In terms of transaction speed, fiat money moves much faster than crypto. The visa can handle about 40,000 transactions per second. Under normal circumstances, the blockchain manages only about 10 per second. However, a new protocol is underway, which will increase to 60,000 transactions per second. Known as the Lightning Network, cryptocurrencies could become the future of money.
Conversation would not be complete without talking about comfort. What do people like about traditional banking and spending methods? For those who prefer money, of course, it’s easy to use most of the time. If you are looking to book a hotel room or rent a car, you will need a credit card. Personally, I use my credit card everywhere I go for convenience, security and rewards.
Did you know that there are companies that provide all of this in the crypto space as well? Monaco issues Visa logo-ed cards for you that automatically convert your digital currency into a local currency.
If you have ever tried wiring money, you know that this process can be very tedious and expensive. Blockchain transactions allow the user to send cryptography to anyone in a matter of minutes, no matter where they live. It’s also considerably cheaper and more secure than sending a bank to bank.
There are other modern methods of transferring money in both worlds. Take, for example, apps like Zelle, Venmo, and Messenger Pay. These apps are used by millions of millennials every day. Did you know that crypts have also started to be introduced?
Square Cash app now Bitcoin and CEO Jack Dorsey said: “Bitcoin, for us, doesn’t stop buying and selling. We believe it’s a transformative technology for our industry, and we want to learn as quickly as possible.”
He added, “Bitcoin provides an opportunity for more people to access the financial system.”
While it’s clear that fiat spending dominates the way most people move money, the new cryptography system immediately gains. Evidence is everywhere. Prior to 2017, it was difficult to find major media coverage. Now almost all new businesses are covered by Bitcoin. From Forbes to Fidelity, everyone is weighing in with their opinions.
What is my opinion? Perhaps the biggest reason Bitcoin can be successful is that it is fair, inclusive, and providing financial access to more people around the world. Banks and large institutions see it as a threat to their existence. They are losing the largest transfer of wealth the world has ever seen.
Still undecided? Ask yourself this question: “Do people trust governments and banks approximately every day?”
The answer to this question may be who decides the future of money.