What will be the future of money? Imagine entering a restaurant և looking at your favorite digital dining menu board. Instead of just $ 8.99, it is shown as .009 BTC.
Can krypton really be the future of money? The answer to that question depends on a general consensus on a number of key decisions, from ease of use to safety to regulations.
Let’s look at the two sides of the (digital) coin և compare և contrast traditional fiat money with cryptocurrency.
The first և most important է component is trust.
It is imperative that people trust the currency they use. What gives the dollar its value? Is it gold? No, the dollar has not been backed by gold since the 1970s. In that case, what is the value of the dollar (or any other fiat currency)? Some countries’ currencies are considered more stable than others. After all, it is the people’s confidence that the government that issues that money is firmly behind it and essentially guarantees its “value.”
How does trust work with Bitcoin, as it is decentralized, which means that they are not a governing body that issues coins? Bitcoin is located on a blockchain, which is basically an online accounting book that allows the world to view every transaction. Each of these transactions is checked by miners (people who run computers on an equal pay network) to prevent fraud and to ensure that there are no double costs. In order to maintain the integrity of the blockchain, miners are paid for each transaction they check. Because there are countless miners trying to make money, everyone is checking on each other, working for mistakes. This proof of work process is why the blockchain was never broken. In essence, this trust is what gives Bitcoin its value.
Next, let’s look at a trusted best friend – security.
What if my bank was robbed or my credit card was fraudulent? My deposits in the bank are covered by FDIC insurance. It is likely that my bank will also refund any debits to my card that I have never made. This does not mean that criminals will not be able to do tricks that are at least frustrating and time consuming. It is more or less the peace of mind that comes from knowing that I will most likely be saved from any wrongdoing committed against me.
There are many choices in Crypto when it comes to where to save your money. It is important to know if the transaction is secured for your protection. There are reputable exchanges, such as Binance և Coinbase, that have proven experience in correcting mistakes for their clients. Just as there are fewer reputable banks around the world, so is crypto.
What if I set fire to a $ 20 bill? The same goes for crypto. If I lose my credentials for a certain digital wallet or exchange, I will not be able to access those coins. Again, I can not stress enough about the importance of doing business with a reputable company.
The next issue is scale. At the moment, this may be the biggest obstacle that prevents people from making more transactions with blockchain. In terms of transaction speed, fiat money moves much faster than crypto. Visa can make about 40,000 transactions per second. Under normal circumstances, a blockchain can only control 10 seconds per second. However, a new protocol is coming into force that will increase this to 60,000 transactions per second. Known as the Lightning Network, it can make crypto the future of money.
The conversation would not be complete without talking about comfort. What do people usually like about their traditional banking and spending methods? For those who prefer cash, it is obviously 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 everywhere I go for convenience, security and rewards.
Did you know that there are companies that provide all this in the crypto area? Monaco is now issuing Visa logo cards that automatically convert your digital currency to local currency for you.
If you have ever tried to transfer money to someone you know, the process can be very tedious and costly. Blockchain transactions allow a user to send cryptocurrencies to anyone within minutes, no matter where they live. It is also significantly cheaper and safer than sending a bank wire.
There are other modern methods of transferring money that exist in both worlds. Take, for example, applications such as Zelle, Venmo և Messenger Pay. These applications have been used every day for millions of millennia. Did you know that they are also starting to include crypto?
The Square Cash app now includes bitcoin, տնօրեն CEO Jack Dorsey said. “For us, bitcoin does not stop at buying or selling. We believe this is a transformative technology for our industry, we want to learn as quickly as possible. «
He added that “Bitcoin allows more people to access the financial system.”
While it is clear that fiat costs still dominate the way many of us transfer money, the fledgling crypto system is rapidly gaining ground. Evidence is everywhere. Until 2017, it was difficult to find mainstream media coverage. Almost all major business news outlets now cover bitcoin. From Forbes to Fidelity, they all share their opinions.
What is my opinion? The biggest reason that bitcoin can be successful is because it is fair, inclusive, and gives financial access to more people around the world. Banks and large institutions consider it a threat to their existence. They are facing the greatest loss of wealth transfer the world has ever seen.
Haven’t decided yet? Ask yourself a question. “Do people more or less trust governments and banks every day?”
Your answer to that question may simply be what determines the future of money.