Consumer spending heavily relies on digital currency and perhaps someday paper money will be obsolete. It might sound fantastic but consider how frequently you yourself use a credit card to buy things, go online to shop, or receive gift cards preloaded with a specific dollar amount. Most likely you pay your bills via online banking, pay-at-the-pump with a credit card, as well as purchase movie tickets online. Once you consider the frequency of which you actually use digital currency on a day-to-day basis, we aren’t really that far off from going totally digital with our currency.
The Bitcoin revolution?
Bitcoin has been around since 2009 and is a peer-to-peer digital currency.
It may be used to purchase products and services online. The technology behind Bitcoin is considered to be difficult to hack, which helps reduce most security concerns.
Of course, Bitcoin is hardly a worldwide digital currency. For one thing, it is not legal tender. So most retailers, even in the online world, don’t accept it, and there’s no guarantee that Bitcoin won’t simply disappear. Entrepreneurs can create an alternative digital currency that proves more popular, and consumers could instead flock to that. This could render Bitcoin valueless.
The digital currency model
There are plenty of advantages to ditching paper money. You cannot lose digital currency because it falls out of your pocket. You don’t have to make sure that you constantly have enough of this digital money in your wallet to cover a purchase. Furthermore, countries can eliminate the need to continually replace damaged paper currency that must be removed from circulation.
Digital currency is also more secure. If you’re mugged and carrying a fair amount of cash, it is extremely unlikely you’ll ever get that money back. If your credit card is stolen, however, you can quickly call your credit card company, cancel the card and recoup most if not all of any fraudulent charges to the account.
It’s unlikely the change to an all-digital currency world will be met without a few strong objectors. There are still consumer luddites today that have never opened a line of credit with a credit card company, never used the banking system, and prefer to handle all purchases with cash. The future is always in flux and it will be interesting to see how both sides of the debate form their stance on the issue.