This column is authored by Carolin Petterson, Content Marketer, Dash
Whether we like it or not, money holds a great value in the modern world, just like it did in the past. However, the way we use money has changed a lot. There was a time when the main currency was goods and services that one used as an exchange for something else. These days, we use pieces of paper that we labeled as money and assigned them a certain value. If you think about it, it’s quite strange how paper that has less practical use than toilet paper controls our lives. However, the notion of currency has to exist in the world as it is. But, is that all there is to money? Are some other changes on the way? Keep on reading to find out more on this topic.
Will we still need paper money?
Since we live in a digital age and use credit cards for online transactions, one may think that paper money is slowly becoming redundant. However, that’s not quite the case. The reason why paper money still presents a necessity is rather simple. One still needs physical, paper money to back up online transactions. Paper money and currencies may be the concept of value that humans arbitrarily assigned, but the system has worked perfectly to this day.
Cryptocurrencies are becoming popular
It’s clear that paper money is not going to become obsolete any time soon. However, that doesn’t mean that the future is not already here. This is especially evident in the rising popularity of the so-called cryptocurrencies. Basically, to use a cryptocurrency, you need to purchase cryptocoins and store them in your desktop or online wallet. The easiest way to obtain your cryptocoins is to buy digital currency and then use it for online exchange. You have the freedom to spend digital currency on goods and services or exchange it for other types of cryptocoins.
The future of money
The appeal of paper money is in the fact that face-to-face exchanges don’t require a middleman or an additional fee. However, in this day and age, online transactions are slowly taking over. With ecommerce businesses on the rise, geographical limits are no longer an issue. In that respect, the usefulness and practicality of digital currencies are becoming even more evident. Essentially, there’s no need for a middleman and you get to purchase stuff online. You’re using your digital/online wallet just like you’d use your regular one.
As mentioned, one of the main benefits of using cryptocoins is the anonymity of your transactions and you as a user. Another great thing about cryptocurrencies is that they are flexible and don’t depend on your location or country’s currency. Moreover, they present an open source, which allows for people to join the network fee-free and start mining. In the end, cryptocurrencies use a proof-of-work system. Essentially, the more work is put into mining the coins, the bigger the value of the digital cash becomes.
Obviously, unlike your usual online transactions with credit cards, cryptocurrencies are not nation-oriented and they don’t have a physical form. This means that there’s absolutely no way for someone to steal or lose your digital cash if you make sure to store it safely in your digital wallet. Moreover, you can easily transfer your money. Also, cryptocurrencies cannot be tracked in a traditional way, which gives them a serious advantage over the regular concept of money. Finally, as we are turning to the digital world and technology more and more, cryptocurrency proves to be a truly worthwhile investment.
Regardless of what type of transaction you prefer, or whether you use digital currency or not, it’s essential that you’re careful with your money. Even if digital currency seems like the safest way to store your money, you have to make sure that you keep it in your digital wallet and check whether a digital currency ATM is close enough for your convenience.