Cryptocurrencies have come out as the new platform for cashless and full proof payments. They have created a parallel economy where trading is undertaken without government supervision. While some people claim it to be the den of black money, others see it as a solution to improper tax slabs forced by authorities.
Irrespective of the case, fiat currencies are getting a tough competition from digital coins. Today, we will try to simplify the debate and leave the final answer on individual wisdom.
The advantages of crypto coins
Assuming that you know about the current benefits of using digital coins, we will only talk about future possibilities. Crypto advocates state that its unregulated status and decentralized management will make it more secure than traditional currency. Governments will not be able to manipulate its value and people will pay the actual price for any commodity.
There would be no need of central banks as the economy will become self-sufficient. Moreover, they would also settle the need for a universal currency, which will ease out international transactions. The one world one currency concept would also provide a universal basic income, unlike the current economic framework.
Surprisingly, some projects have already started working on the universal basic income theory by using digital coins. Finally, technology will eliminate intermediaries from daily trades. Subsequently, costs will diminish, and consumers will save more money. Also, due to blockchain technology, there would be no risk of corruption, and every transaction will have lifetime records.
Negatives of digital currencies
If lost, we will never be able to resurrect traditional currencies ever. Governments around the globe will be forced to build new infrastructure after destroying the old ones. Numerous people will lose their assets quicker than expected as cash would become obsolete. Financial institutions will either die a natural death or face significant difficulties in coping with the new finance mechanism. It’s essential to note that businesses are not keen on using digital coins as a means of exchange even after showing initial interest.
Apart from establishments and the general public, the government will suffer too. As of now, governments can control and regulate their nation’s economy, but without traditional currency, the authority would become meaningless. They will not be able to print new money to manage national and international finances. Probably, the new government will depend upon private miners or would take complete control of the operations.
If in case the blockchain system faces issues or mining software gets corrupted, then the world will face drastic impacts. After all, it’s a technology which can be outcompeted someday. In that case, there would be no international body to control the money flow.
Crypto coins can be a boon or bane in respect to their usage. We still do not know about future situations that can impact its usage and management. Still, we believe that curbing technology is no option. It should be developed for smart usage and universal betterment. What do you think? Tell us in the comments section below.