What will be the future of money? Imagine walking into a restaurant and looking at the digital menu board of your favorite combo food. Only, instead of being priced at 8. 8.99, it is shown as 009 BTC.
Can crypto really be the future of money? The answer to this question depends on a number of key decisions ranging from ease of use to safety and regulations to overall sensitivity.
Let’s examine both aspects of the (digital) currency and compare and contrast traditional cryptocurrencies with cryptocurrencies.
The first and most important element is faith.
It is essential that people believe in the currency they are using. What gives the dollar its value? Is it gold? No, the dollar has not been supported by gold since the 1970s. So is that the dollar (or any other fiat currency) value? The currencies of some countries are considered to be more stable than others. In the end, it is the people’s belief that this paying government stands firmly behind it and essentially guarantees its “value”.
How does a trust deal with Bitcoin because it is decentralized meaning it is not the governing body that issues their currency? Bitcoin sits on the blockchain which is basically an online accounting ledger that lets the whole world see every transaction. Each of these transactions is verified by miners (who operate computers on a peer-to-peer network) to prevent fraud and ensure that there is no double cost. In exchange for their services to maintain the integrity of the blockchain, miners pay for each of their verified transactions. Since countless miners are trying to make money they each test each other to make mistakes. This proof of the work process is why the blockchain was never hacked. Basically, this belief is what gives Bitcoin value.
Next look at the trust’s closest friend, Security.
What if I have a bank robbery or fraudulent activity on my credit card? My deposit in the bank is covered by FDIC insurance. Chances are my bank will reverse any charges on my card that I never did. This does not mean that criminals will not be able to pull off stunts that are much less frustrating and time consuming. It is more or less the peace of mind that comes after knowing that I will probably be completely free from any injustice against me.
In crypto, there are many choices for where to save your money. It is important to know if the transaction is insured for your protection. There are well-known exchanges like Binance and Coinbase that have a proven track record of correcting mistakes for their clients. The same is true of crypto, as there are fewer than the world’s leading banks.
What if I set the twenty dollar bill on fire? The same goes for crypto. If I lose my sign-in credentials in exchange for a certain digital wallet, I will not be able to access that coin. Again, I can’t put enough pressure on the importance of doing business with a reputable company.
The next problem is scaling. Currently, this may be the biggest hurdle that is preventing people from doing more transactions in blockchain. Fiat money goes much faster than crypto when it comes to transaction speed. Visa can handle about 40,000 transactions per second. Under normal circumstances, a blockchain can handle about 10 seconds per second. However, a new protocol is being formulated that will skyrocket 60,000 transactions per second. Known as the Lightning Network, this could lead to the future of crypto money.
The conversation will not be complete without talking about benefits. What do people usually like about their traditional traditional banking and spending methods? For those who like cash, it is easy to use most of the time. If you are trying to book a hotel room or rent a car, you need a credit card. Personally, I use my credit card wherever I go for convenience, security and rewards.
Did you know that there are all these suppliers in the crypto space? Monaco is now issuing a Visa logo-ad card that automatically converts your digital currency into local currency for you.
If you have ever tried to wire money to someone, you know that the process can be very tedious and expensive. Blockchain transactions allow users to send crypto to anyone in just a few minutes, no matter where they are. It is cheaper and safer than sending it to a bank.
There are other modern methods for transferring money that exist in both worlds. Take, for example, applications like Gel, Venmo and Messenger Pay. These apps are used by millions of millennia every day. Did you know that they have started to include crypto as well?
Jack Dorsey, now Bitcoin and CEO at the Square Cash app, said: “Buying and selling Bitcoin is not stopping for us. We believe it’s a conversion technology for our industry, and we want to learn as quickly as possible.”
“Bitcoin allows more people to enter the financial system,” he added.
While it’s clear that Fiat spending is still predominant on the way to most of our money transfers, the nascent crypto system is rapidly gaining ground. Evidence is everywhere. Prior to 2017, mainstream media coverage was hard to find. Now almost every big business news outlet covers Bitcoin. From Forbes to Fidelity, they are all weighing in with their opinions.
What is my opinion? Perhaps the biggest reason Bitcoin is successful is because it is fair, inclusive and provides financial access to more people worldwide. Banks and large institutions see it as a threat to their very existence. They are nearing the end of the world’s largest asset transfer.
Still uncertain? Ask yourself this question: “Do people trust the government and the bank more or less every day?”
Your answer to that question may determine the future of money.