can digital currency replace money?
From barter to mobile banking system to coinage, gold bars to paper currency, plastic cards there has always been an evolution in terms of exchange and confusion as to which is the best form of the exchange system, and now the crypto-currency. Over the last couple of years, the term digital or crypto-currency is gaining a public eye, particularly bitcoins. For those who have no idea about crypto-currency and its evolution, here is a quick summary!
digital currency vs cryptocurrency
A cryptocurrency is a digital currency that is developed and utilized with the purpose of advanced encryption techniques known as cryptography. Cryptocurrency leaped from being an academic concept to (virtual) reality with the creation of Bitcoin in 2009. While Bitcoin enticed a growing following in successive years, it grabbed significant investor and media awareness in April 2013 when it peaked at a record $266 per bitcoin after surging 10-fold in the preceding two months. Bitcoin sported a market value of over $2 billion at its peak, but a 50% plunge shortly thereafter sparked a raging debate about the future of cryptocurrencies in general and Bitcoin in particular. So, will these alternative digital currencies eventually replace conventional currencies and become as ubiquitous as dollars and Euros someday? Or are cryptocurrencies a fad that will flame out before long? The answer lies with Bitcoin.
WHY YOU SHOULD CHOOSE DIGITAL CURRENCY OVER CONVENTIONAL CURRENCY
With the growth of an economy, the world is becoming economically unsafe and it is a difficult affair to manage the physical currency and its account at the end of the day. But digital currencies are easy to manage and keep a track of. There are more merits to have digitalized currency. So all you hard-working citizens let’s take a look at which type of currency suits
“[Bitcoin] is a techno tour Deforce”. –Bill gates
will cryptocurrency take over the dollar
Reasons why digital currency is better than conventional currency –
FRAUD: money is stored digitally so there is no chance of counterfeit or robbery. You can make transactions when you put in your password or finish a specific process whose details are solely known by you. It’s up to you to choose the right bitcoin wallet suiting your safety level and the amount of money you’ve stored. Whereas while using our normal currency we always have our heart in hand, that what if someday takes away all that earned through blood and sweat.
TOOL FOR INVESTMENT: there is no single currency that can be used throughout the world and this has paved the way for digital currencies to be the single digital form of currency that can be accepted everywhere, which need not go through the conversion process. It is evaluated at par with Gold and integrates the best of currency and gold while delivering an open market and no regulations imposed by banks or governments.
TAX EVASION: the record of each bitcoin transacted is maintained and the records cannot be manipulated. As you trade with a bitcoin the ownership shifts and it is stored in ‘log book’ which is a digital version of a ledger, but here you don’t have to fill in the logbook as per transaction your logbook will be updated. Hence, no chance of tax evasion.
DECENTRALISED: Nobody or authority controls these bitcoins it is decentralized and it is between the buyer and seller to estimate the value for the goods in terms of bitcoins.
LOWER FEES: There aren’t usually transaction fees for cryptocurrency exchanges because the miners are compensated by the network (Side note: This is the case for now). Even though there’s no bitcoin/cryptocurrency transaction fee, many expect that most users will engage a third-party service, such as Coinbase, creating and maintaining their bitcoin wallets. These services act like PayPal does for cash or credit card users, providing the online exchange system for bitcoin, and as such, they’re likely to charge fees.
NO DUPLICATION: there is any way your bitcoins can be duplicated as it is a combination of private and public keys and the combination varies with every transaction.
“THE BLOCKCHAIN KEEPS EVERYONE HONEST, AND A WHOLE LAYER OF BANKING BUREAUCRACY IS REMOVED, LOWERING COSTS.” – PAUL VIGNA
Now that I have spoken for digital currency, there are also a few de- merits to it.
There is no knowledge about digital currency to 83% of the people and only 6% are completely aware and have mastered the subject of cryptocurrencies. Again there are many types of cryptocurrencies like bitcoin, Dash, Ripple, Dogecoin, Litecoin, Peercoin, and Ether whose values might change with the change in market forces. Determining each country’s currency and further devaluing them would cost big bucks to the backward nations and also further setting up agencies and people to help will not come cheap.
But above all the cons once digital currency is implemented will be the best form of currency. Most importantly, digital currencies are safe with you and cannot be taken away unless you approve it is not controlled by any authority (until now) except for you. By promoting digital currency we can get rid of the printing, distribution, withdrawing, depositing, ATM, etc. There are various steps been taken by the government like “DIGITAL INDIA”. There is also news about the introduction of a new Indian crypto-currency called “Lakshmi”. With the growing technology having a currency of new-age- crypto-currency.
The new age might have a new form to match its technology and speed maybe the papers are of no use after technology will take over the new age is the digital age then why not have a digital currency. Transaction charges can be avoided which are becoming unaffordable unless you have money to burn. Concluding philosophically to get something you have to give something, and if it’s this worth then we must try and succeed.