How cryptocurrency can replace the need of Fiat money in the modern era?

Photography Credit: Andre Francois

We are living in a digital era. In other words, digital technologies are being used to make the life easy for people who live out there in the world. Along with the technological development, the way how people make financial transactions has also changed. In fact, people prefer to use Cryptocurrencies instead of traditional currencies.

Along with the increasing popularity of Cryptocurrencies, you would wonder whether are they are in a position to replace the need to have flat money in today's world. Let's deep dive and figure out the truth.

Here are few methods that indicate how cryptocurrency can replace the need to have flat money.

• Cryptocurrency is durable – You might wonder how cryptocurrency is durable, because you can't even touch it. But when you take a look at the architecture behind Cryptocurrencies, you will figure out that it's more durable when compared to a physical product. Cryptocurrency is not just data stored in a server. This currency is being backed up by a Blockchain. In this Blockchain, every fraction of the currency is distributed across node. Hence, the deletion of one node will not be enough to destroy cryptocurrency. If you want to destroy it, you will have to think about deleting the entire Blockchain, which is never a possibility due to the distributed architecture.
• Cryptocurrency is portable – People in today's world tend to get attracted towards portable solutions. That's where cryptocurrency comes into play. As you already know, cryptocurrency is being stored in a cloud. You have a wallet to access the Cryptocurrencies that you own. This wallet is just a mobile phone application. Hence, you can travel around the world and make transactions with the cryptocurrency wallet that you have installed inside your mobile.
• Cryptocurrency is uniform – Uniformity can be considered as one of the most effective features that a currency should have. Cryptocurrency is associated with this uniformity. For example, every single unit of a cryptocurrency can be uniquely identified from the others. The currency units are identical to each other as well.
• Cryptocurrency is being accepted by merchants – If the currency is not accepted by merchants, people will not be able to go ahead and use it for their transactions. Cryptocurrencies are now being accepted by a large number of merchants across the world. Due to this reason, people are provided with the opportunity to go ahead and make transactions with Cryptocurrencies without worrying over anything. It is accepted as a medium of exchange by many different entities.
• Cryptocurrency has a limited supply - If there is an excessive supply of a currency, inflation could take place. It is never good for the economy. However, the Cryptocurrencies are associated with a limited supply. After the limit is reached, nobody will be able to go ahead and create Cryptocurrencies. Hence, it would never give life to inflation in the long run. It can create a sustainable economy as well.

I hope you did find this article interesting for you as it took a good research and study to compile this information together. 

As always, I would appreciate any comments, feedback and upvote!

 

Disclaimer: The written article is for a general knowledge and entertainment only. This is not a financial advice or any other professional advice of any kind. Anything you may choose to do or not to do based on the written above is at your very own responsibility .