When you look at where cryptocurrency started and where it now sits in society, the amazing progress it has made is there for everyone to see. The first cryptocurrency, Bitcoin, was released to little fanfare in 2009 but has since gone on to become a trusted form of money. The success of Bitcoin has also paved the way for a variety of other coins to take hold, from Litecoin to Ethereum. As tech now begins to catch up and give us more ways to not only buy but use digital currency in our daily lives, many are beginning to predict it will soon outstrip normal money.
Indeed, Deutsche Bank recently claimed crypto could replace fiat currency by 2030. But what makes digital currency so appealing?Why might it replace regular currency in the not too distant future?
Crypto increasingly popular for investors
One area where digital currency is fast catching up with traditional fiat currency is investing. In the past, currency has always been traded via the global Forex market and investors interested in this niche have not strayed away from FX. However, more and more are now beginning to invest in cryptocurrency instead to make better returns on a market which, unlike Forex, is not open to any interference.
Of course, Bitcoin is leading the charge here, and this is one coin that has attracted many investors to digital currency, all looking for big profits. Platforms like the BTC profit website are also helping draw more investors towards currencies like Bitcoin by providing an easy to use interface when trading in crypto. If more investors continue to choose crypto over standard currency, it could soon grow bigger.
Crypto idealfor poor or troubled countries
One interesting phenomenon to take note of here is the growth of crypto in troubled countries across the world. In locations where the national fiat currency is becoming devalued, the people often turn to digital currency like Bitcoin. This is because popular coins like this are accepted worldwide and are more valuable than many fiat currencies in some countries. If this trend continues, you could soon see standard currency overtaken and replaced by digital ones.
This is also a similar picture in countries which are poor by comparison to places like the USA or UK. Residents of these countries often have no access to banks, bank accounts or traditional banking systems. By freeing them up from this, digital currency allows them to step out of poverty and access global finance.
Crypto offers more security
One major reason that we may see crypto come to overtake and replace standard money is the superior security it offers. This is a big advantage over normal money and gets even more important when you consider how many of us like to pay for goods online. Crypto coins are based on a Blockchain network which is totally secure. Peer to peer encryption reduces the risk of security concerns to a minimum while any transactions are totally anonymous to help cut down on cyber-fraud. Using digital money to pay for things is safer than how you use normal money to do the same tasks – this could be a real clincher in terms of crypto replacing the currency we now use.
More control for the public
Traditional money comes with the need to use banks or financial institutions to manage it. The issue here is that we are then subject to any rules or actions these institutions impose on us. Take, for example, a bank that is shut on a Sunday when you need to access your money there or sort out an urgent payment with them. Those who use digital currency face no such restrictions and this could well see it replace standard money soon. With coins like Bitcoin, you can simply make any transaction whenever you like. This is not only useful for personal life but also in a business sense.
Crypto payments can save you time and money
One of the beauties of digital currency is how it can save you money. This is especially true when making international payments when compared to normal currency. Sending regular money overseas through your bank usually involves high fees which can really mount up. The transaction fees for sending digital money, on the other hand, are muchlower as there are no middlemen to bump up the cost. You just send your crypto payment to the other person and that is it! This is naturally great if you are looking for ways to save money in your personal or business life.
Crypto payments are also faster as you do not have to wait for your bank to process the payment and then action it. This is obviously much better for businesses and people who need the money they send to arrive asap.
Regular currency may soon be a memory
When you think of how far things have come with cryptocurrency, it is easy to see why there is so much hype around it. 2020 is all set to be another great year for Bitcoin and may see other coins in the sector perform well in addition. When compared to the ever-fluctuating fortunes of regular currency and the political upheavals including the US-China trade war which affect them, digital currency could soon find more favor with the public.