Could Bitcoin Replace Cash?
Bitcoin is the first of its kind. It first surfaced in 2009 and since then it has been an undisputed champion among the Cryptocurrency. Bitcoin saw its golden year in 2017 when the price of a single bitcoin was almost $20,000. This marks a new era for Cryptocurrency.
After this event, there have been several new currencies like Ripple and Ethereum and online trading platforms like bitcoin rush in the Crypto trading market. These all Cryptocurrencies are in the run against Bitcoin. However, Bitcoin is in the leading position. With so many Cryptocurrency present in the market and most of the trading transactions in the cryptocurrency have made the traders believe Cryptocurrency as the actual currency.
Many traders and investors have made predictions that Cryptocurrencies are yet to evolve to their full potential. And one of the features that will mark the evolution of the Cryptocurrencies is that it might replace the cash in the near future.
Possibilities of Cryptocurrency In the Future
According to the report made by Futurism, Cryptocurrency might replace the Fiat currency in the upcoming future. Here are the reasons why Futurism thinks so.
- Cannot be Manipulated
Cryptocurrency is a volatile variable that cannot be controlled by the Governmental authority. The price of the Cryptocurrency can only be manipulated with the trade. Hence, Cryptocurrency can serve people with more security.
- It supports the concept of Universal Basic Income
The price of the Cryptocurrency is the same all over the world, and if everybody starts trading with Cryptocurrencies then Cryptocurrency will hold the power as the basic unit of income worldwide.
- A new mode of Online Transaction
Furthermore, Cryptocurrencies are more secure than other online transactional methods. Hence, online scams and external threats will not be an issue anymore.
What Will Happen If Cryptocurrency Replaces Cash
Well, we all know that with a great change, bigger consequences also follow. If the cryptocurrency outpaces the traditional currency then what do you think will happen? The traditional currency will lose all its value without having any kind of resources.
When the cash is replaced by the Cryptocurrency, new infrastructures will be needed for the world to adapt to a new type of currency. And if the transition is fast, all the people holding traditional cash assets will lose their assets.
You must remember that replacing the cash with the cryptocurrency is just like changing the whole world. The process may leave the whole world in scrambles.
Here are some of the possible consequences that might happen due to currency replacement.
- The need for new Infrastructure
Before Cryptocurrency can replace the traditional cash, we first need to have an infrastructure that can maintain Cryptocurrency flow. Without that many people might lose their assistants which are in the form of cash.
- It can affect the Government control over Finance.
Beyond the Impact on the individual people, the Government itself may face a crisis. The Cryptocurrency is a decentralized entity, no Government holds any authority over them. This can lead to confusion for the government to determine the financial state of the country.
Governments could no longer be able to determine the amount of currency to print as they will not be able to assess the internal and external financial pressure.
Regardless of what the future may hold for the Cryptocurrency and for the traditional currency, we are sure of at least one thing that before Cryptocurrencies out past the traditional currencies, we have to set up an infrastructure to control the flow of Cryptocurrencies.
We all know that Cryptocurrency is a market that has been built on trust. And once the trust of the traders breaks, that will be it for the Cryptocurrency.