Connect with us

FinTech Network

Will Cryptocurrency Replace Fiat Money in the Future?

Published

Will Cryptocurrency Replace Fiat Money in the Future?

Written by: Noah Coin | NoahCoin

The subject of cryptocurrency has been making headlines recently, particularly over Bitcoin, after unexpectedly gaining considerable value in such a short span of time.

With a new player breaking into the scene, many are now wondering if this alternative form of money can make a huge impact to the world’s overall financial system. This may well be the case, with its rising popularity and increasing value.

Cryptocurrency is very much here to stay. Cryptocurrencies are going to displace roughly 25% of national currencies by 2030. — Thomas Frey

In the words of futurist Thomas Frey, “cryptocurrency is very much here to stay,” and predicted it would replace roughly 25 percent of national currencies by the year 2030. And with the way things are going, he might be right on the money with his prediction, since he believes the way they are run is more efficient than how things are going in our current financial system.

It comes to no surprise that financial institutions have started recognizing the use of cryptocurrency as an asset with real value. This could be taken as a good sign that crypto will soon replace fiat money in the future.

In fact, we are on our way to making transactions without the use of bank notes and coins. One country has made headway by becoming the most cashless society on the planet. Sweden barely hit one percent of the value of all the country’s transactions using cash, which is impressive to say the least. The Nordic country’s citizens had generally positive reactions towards the no-cash payment policy, saying it reduces the risk of criminal activities while making it easier for customers to pay with just their card on hand.

The idea of eliminating legal tender from our daily transactions has been an attractive option for a growing number of national banks, mainly for using blockchain technology in powering a centralized national currency. This option certainly has a few advantages that could benefit the way we conduct our transactions.

Pros of Cryptocurrency

No intermediaries

Since cryptocurrency is decentralized, no institution or person can regulate it or act as an intermediary to influence its value. This keeps things a whole lot simpler in terms of how it is acquired and traded while holding a higher value than fiat money per unit.

Security

With the growing number of incidents involving identity theft from credit cards, cryptocurrency has now become a viable option for more secure transactions with encryption from its blockchain technology. This keeps your digital assets more secure, reducing the likelihood of being robbed.

Related: Everything You Need to Know About Bitcoin

No government control

The national government will always have a huge influence on the value of fiat money, which in turn impacts a country’s economy as a whole. When its value plummets or rises, the government may have a hand in it. With crypto, no government-controlled central bank can have power over or control over how it is handled.

Cons of Cryptocurrency

If there are pros, there certainly are cons, which are mainly the reasons why folks are still hesitant to embrace the potential of using digital tokens as currency. You really can’t blame them, since we are talking about a representation of a person’s financial assets, which for many around the world is still fiat money.

The concept is still foreign to many

The whole world, maybe except Sweden, still can’t veer away from the idea of using fiat money in conducting financial transactions. Convincing them to embrace a new concept is one of the biggest obstacles they need to face, which is against man’s nature whenever something new with very little information is encountered. This is particularly tough for Filipinos who have been relying heavily on cash for their daily transactions.

Huge volatility in price

Bitcoin has put cryptocurrency on the map after a huge surge in its value. But after a while, it dropped before picking up again. This kind of volatility is off-putting to anyone who is thinking of investing in a digital asset. Stability or a guaranteed huge return from an investment is always ideal, but let’s not get ahead of ourselves.

Related: 10 Questions and Answers About Bitcoin and the Blockchain

No insurance

Having no intermediaries and a robust security system to keep them from being stolen can both be a double-edged sword. This means when cryptocurrency gets lost or stolen no matter how unlikely this could ever happen, there is nothing you can do to get them back. As opposed to fiat money stored in banks, a certain amount is insured in the event it gets robbed.

While the world is still stuck in the use of fiat money, cryptocurrency like NOAHCOIN is setting the stage for change. Its concept and all the advantages it brings to the table certainly have the potential to be the next standard mode of currency used in every country.

With the right improvements, this might be the next big thing that could ever happen in the world’s financial system.

Continue Reading

Trending