When the flagship electronic currency first got released, most individuals did not take it seriously. Fast forward to a few years, new cryptocurrencies started cropping up, and debates about whether currencies have the power to topple the position held by national currency began. But, of course, back then, it was mainly focused on Bitcoins and their popularity.
Now the debates include other popular cryptocurrencies that, together with Bitcoin, have a market capitalization of over 2 billion US dollars. This ginormous amount and the outlook of the younger generations towards electronic currencies are making a lot of people look into this debate with renewed interest.
The Advantages of Cryptocurrencies Replacing Tangible Money:
- It can help bring to life a proper UBI program.
Many cryptocurrency enthusiasts have given a lot of positives that can be achieved in the world if Fiat currency would be replaced with cryptocurrencies. One of the biggest things that these enthusiasts point out is that the manipulation that can be done on Fiat currency cannot be easily achieved on cryptocurrencies. This means that the concept of Universal basic income can be achieved through cryptocurrencies. We are already seeing countries like Finland who are already ahead in this regard.
Here, cryptocurrencies will be used to give people a fixed amount that will be decided by the government, which will cover the person’s basic requirements to survive. Thus, regardless of the person’s employment condition, this money will be given to everyone so that they can stay afloat even when unforeseeable problems come into their lives.
- Eliminate intermediaries and save lots of money.
The problem with Fiat currencies is that there are many intermediaries created who have to be paid for their trivial role. These intermediaries can be eliminated when cryptocurrency is brought to the table. Merchants can be directly connected to their consumers who can purchase any product from any corner of the world.
- It will make this lead to larger connections making the planet smaller.
With Fiat currency gone and cryptocurrency replacing all cash, you could travel to any part of the country without ever having to exchange your money. The cryptocurrencies will be valid anywhere and everywhere. The world will have less to worry about in this regard, and you will be the happiest traveler without ever having to worry about losing your money. Even the pain of calculating the exchange rates for the extra fees you would have to pay for these services can be eliminated.
Real Concerns with Cryptocurrencies that Must be Discussed:
All of the advantages given above sound wonderful; however, there are many challenges to this utopian scenario in reality. The first thing that has to be kept in mind is that this futuristic world can only be possible when new kinds of infrastructure to support this mode of the transaction are built.
Probably more advanced countries will be able to reach that goal to some extent. However, the hundreds of poorer nations that do not even have proper internet speeds will fall behind in this race.
Other than that, when cash becomes incompatible with this new infrastructure, if it is ever built, the thousands of financial institutions all across the globe will fail. It will leave many people without jobs, and millions will lose their assets.
The fears and concerns regarding hackers exploiting individuals are also real. Moreover, the fact that many people do not know how to adapt to a digitized currency world is another huge point made by the most prominent skeptics around the future of cryptocurrency.
Both sides of the debate of whether cryptocurrency can ever replace Fiat currency make exciting points. At this point, we can only conclude by saying that Fiat currency will remain in its position as the most important form of economic exchange in the near future. This does not mean that cryptocurrencies will lose out on any battle, as we can understand their positive impact on the world. You can experience the immense benefits of cryptocurrencies by going on BTC trading to explore its myriad possibilities. Try to check out for yourself the future of currency now and how you can make money out of it.