What does the financial future appear to be like? Imagine going into a restaurant and looking at the menus on the computer for your favorite combo meal. Instead of being listed as $8.99, It’s listed as.009 BTC.
Is crypto one of the ways to make money? The answer is contingent on the general agreement on a variety of crucial decisions, ranging from user-friendliness to security and rules.
Let’s take a look at all sides of the (digital) coin, and then look at the contrast between traditional fiat money and cryptocurrency.
The primary and most essential element is trust. It is essential that people believe in their currency. What is the reason for the dollar’s worth? Are you sure it’s gold? The dollar hasn’t been supported by silver since the 1970s. What then confers the currency (or any other currency that is fiat) its value? Certain currencies of countries are believed to be more stable than others. In the end, it’s about trust that the government that issued the currency is firmly behind it, and basically guarantees its “value.”
How does trust work with Bitcoin because it’s decentralized which means there’s no authority that issue the bitcoins? Bitcoin is part of the blockchain which is an online ledger of accounting that allows everyone to monitor each transaction. Every transaction is checked by miners (people using computers connected to the peer-to-peer network) to avoid fraud as well as make sure there isn’t double-spending. As a reward for their work in ensuring the security of blockchains, miners are paid for every transaction they check. As there are numerous miners trying to earn money each one is able to check the other’s work for any mistakes. This process of proof of work is the reason why the blockchain has not been compromised. This trust is the basis of what is what gives Bitcoin its value.
The next step is to take a look at the closest friend of trust Security.
What happens should I react if my bank is taken or if there is fraud in my account? My bank deposits are protected through FDIC insurance. The bank could reverse any charges that are on the credit card that I didn’t make. This doesn’t mean that criminals will not be in a position to pull off heists which are at least time-consuming and frustrating. This is more or less security that is derived from knowing that I’ll likely be held accountable for any wrongdoings against me.
In the realm of cryptocurrency, there are plenty of options in regard to the best place to keep your money. It is crucial to determine whether transactions are covered for your security. There are trusted exchanges like Binance and Coinbase with a solid track record of correcting wrongs for their customers. Like there are fewer than trustworthy banks around the globe The same can be said for cryptocurrency.
What happens if I drop 20 dollars into a flame? It’s the same with cryptocurrency. If I forget my login credentials to a specific online wallet I will not gain access to the coins. It is a fact that I cannot be more clear about the importance of doing business with a trustworthy business.
The second issue is scaling. This is currently the main obstacle that’s hindering individuals from making more transactions through the blockchain. With regards to processing speed fiat money is faster than crypto. Visa is able to handle around 10,000 operations per second. In normal conditions, the blockchain is able to manage around 10 transactions per second. But a brand new protocol is in the process of being implemented which will increase this number to 60,000 transactions per second. The protocol is known as “the Lightning Network, which could lead to crypto becoming the new currency.
It wouldn’t be a complete discussion without discussing the ease of use. What are people generally pleased with about their old-fashioned method of banking and spending? If you like cash and prefer it, it’s convenient to use it all the time. If you’re planning to book a hotel room or rental car, you’ll require a credit card. Personally, I utilize my credit card wherever I go because of its convenience, security, and rewards.
Did you know that there are businesses that provide all this in the cryptocurrency space also? Monaco is currently issuing Visa logo-ed credit cards that automatically change your cryptocurrency to the local currency.
If you’ve ever tried to wire money to someone you know, this process is expensive and time-consuming. Blockchain transactions permit the user to transfer cryptocurrency to anyone within minutes, no matter the location they reside in. It’s also much less expensive and secure than sending a wire to a bank.
There are various other options to transfer money that is available within both worlds. Consider, for instance, apps like Zelle, Venmo, and Messenger Pay. These apps are utilized by millions of millennials every day. Did you realize that they are now beginning to include crypto in their apps too?
It is now possible to use the Square Cash app now includes Bitcoin and its CEO Jack Dorsey said: “Bitcoin, for us, is not stopping at buying and selling. We do believe that this is a transformational technology for our industry, and we want to learn as quickly as possible.”
He also said that “Bitcoin offers an opportunity to get more people to access to the financial system”.
Although it’s evident that fiat transactions still dominate the way we move money, the newly-formed cryptocurrency system is rapidly expanding its reach. There’s evidence all over the place. Prior to 2017, it was hard to find mainstream coverage. Nowadays, nearly every major business newspaper is covering Bitcoin. From Forbes to Fidelity the list goes on. They’re all weighing in with their views.
What’s your opinion? One of the main reasons Bitcoin may succeed is that it’s fair, inclusive, and provides financial access to more people across the globe. Big institutions and banks view this as an opportunity to end their existence. They are at the bottom of the largest transfer of wealth that the world has ever witnessed.
Are you still unsure? Consider this: “Are people trusting governments and banks more or less with each passing day?”
The answer to this question may be that it is what will determine the future of money.