Digital Currency: Is Cryptocurrency Strong Enough To Replace Paper Money In The Future?

There have been plenty of suggestions recently, especially when it comes to mode of payment when it comes to goods and services. There have been numerous points given to support digital currency replacing paper money, but regardless of all this, I keep having a separate opinion on this matter.

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The scarcity of cash incident that happened in Nigeria some months ago really fuel this talk too, making people permanently move to making payments via electronic means, such as making transfers for payment and also other online means such as Inter-Switch and PayPal.

The rate at which citizens were clamoring for solutions and making numerous protests for the restoration of paper money really makes me feel that, Can Digital Currency replace Paper Money in our society?

What's Digital currency?

Digital Currency has been defined in so many ways; in fact, it has been divided into various parts, which include Cash (Not physical Cash) because this involves sending cash via electronic transfer.

Another one here is the US Dollar and euro because they're tracked by using credit card numbers via traditional financial means and also hold the same market value as the physical ones.

Cryptocurrency is another digital Currency that can be used as a means of payment and can be send and received anonymously without being tracked.

There have been plenty of talks about Cryptocurrency serving as legal tender, with so many opinions pouring out and different individuals picking sides on what they think, but for me, I sincerely think it's not yet time for that because we are still a bit far away from cementing our place in the world market.

Bitcoin and Ethereum are the most popular coins in that world today, and they have indeed served as a means of exchange in some parts of the country.

HBD (hive back Dollar) has also recently been used for transacting in certain countries, but even at that, there have been numerous views by some individuals saying that all these coins aren't ready.

A brief look at some important aspects of using Cryptocurrency as a means of payment.

Based on stats, there have been few benefits attributed to the use of Cryptocurrency for payment, though there is an understanding that if the benefits outweigh the disadvantages, implementing it permanently won't be a problem at all.

Undoubtedly, It makes online transactions, cross-border payments, and customer access to funds faster than what it's with paper money.

Its level of decentralization is one reason why so many individuals are actually rooting for it, as it can't be controlled and there won't be things like a scarcity of coins, unlike the way paper money went off during a period in Nigeria.

Many also see using Cryptocurrency as a mode of payment as one way to reduce theft in society, as that will reduce the level at which people become victim of hoodlums too.

Even with all these benefits, a lot of Risk has been pointed out too, which has increased the level of debate's on how well it will survive or people asking questions like ;Can Cryptocurrency replace Paper Money at all?

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Risk attached to Cryptocurrency as a means of exchange.

There have been plenty of risks attributed to Digital Currency in general, and bringing Cryptocurrency into it now makes it more difficult for its adoption, with so many individuals paying more attention to its risks than its advantages.

Crime

Here is one of the risks attributed to the use of Cryptocurrency as a means of payment.

It has been suggested that there is a lot of crime attached to it, just because it's held in the digital domain. It has been said that it's not secure and too vulnerable to talented hackers who find their way to people's wallets or organizations wallets to defraud them.

One thing that has made it more difficult is that once an individual loses their wallet or gets defrauded, it will be difficult to retrieve it.

Lack of Control

This is definitely one big way the US is trying to stop the use of crypto in their society. Its lack of control has been taken as one of its demerits and another reason why it's risky to adopt.

When you invest in Cryptocurrency, your money is not backed by any financial institutions, which makes it more vulnerable to fraud, theft, and loss.

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Volatility

It's up and down in value or price is another reason why this debate is on. Many industries are absolutely considering its effects and how dangerous it can be.

Cryptocurrency prices can't be determined or controlled; they depend on happenings in society. Coins like Bitcoin and Ethereum have suffered some major setbacks in terms of value recently, giving more individuals another reason to keep on giving their opinions.

Many individuals see it as another means to harm their industry, especially when there is a devaluation in prices, that could affect investors and crush the industry's growth system.

Not Widely Accepted

This is absolutely the biggest war right now. Cryptocurrency is not widely accepted as a means of payment, which is practically, making it more difficult to deal with.

Though some merchants who have more profound understanding of how it works accept it as a means of exchange, some don't want to deal with it out of fear of devaluation.

Some authors have pointed that out as a big risk, stating that if one can't make use of it when it is of good value, then such an individual might be in big trouble if the value start going down.

Conclusion

Honestly, its use is practically debatable right now, and even looking at all its risks, I sincerely see reasons why this debate will keep on going, not until all necessary measures are put in place to control its high volume of price volatility and make it more secure and free from hackers.

For me, I will say that cryptocurrency is definitely not fully ready right now to replace Paper Money comfortably, but anything is possible in the future.

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Kindly drop your opinion on this too 🙏🙏.

Posted Using LeoFinance Alpha