The future of money
We rely on money in our everyday lives, isn’t it? Money has simply become a system for trading human time where most of us probably don’t question it. In this digital age, how we communicate, shop, entertain ourselves, take care of our health all look significantly different than how we did it 20 years ago. everything around us is subjected to change.
Our perception of money, how it is earned and valued is undergoing a major change. With all the innovations of this century, anything seems possible. We turn fantasies into reality and unthinkable to achievable
With all the tools that we have, is it possible for the world to transform from the traditional cash-based monetary system to a cashless society?
There is a coming storm in the world of finance as governments around the world engage in a global contest to digitize their currencies. It is a known fact that we do have digital money where trillions get traded every day, electronically. But are we on the cusp of Digital Money?
Almost everyone is aware of Bitcoin by now. It is the first cryptocurrency that went mainstream and there are others that are growing in popularity. There are around 2000 types of cryptocurrencies and more are being developed everyday.
WHY IS CRYPTOCURRENCY BECOMING SO POPULAR?
Cryptocurrency seems very appealing to its users for various reasons. Some of them are
- People see cryptocurrency as the currency of the future and they are buying them now before their value rises.
- Cryptocurrency stops central banks from handling the money. Over overtime, banks tend to lower the value of the money through inflation.
- People find it attractive because of the technology involved with cryptocurrency. Because the Blockchain is more secure than traditional payment methods.
- The value of cryptocurrency is rising day by day and has no interest in the currencies.
IS CRYPTOCURRENCY A GOOD INVESTMENT?
Just like the normal currency cryptocurrency doesn’t generate cash flow. Investors of crypto see it as just speculation. In order for it to become an investment, someone has to buy it from the investor for a higher price.The cryptocurrency market is volatile. There will be ups and downs and prices swinging dramatically. If you do not have a stable investment portfolio and if the losses are going to affect you mentally, investing in cryptocurrency will not be the right choice for you.
IS CRYPTOCURRENCY A LEGAL FORM OF DIGITAL MONEY?
Cryptocurrency is legal in certain countries and illegal in some. It is legal in the United States of America but China has banned its use.
HOW DO I BUY CRYPTOCURRENCY?
They can be bought in US Dollars or cryptocurrency. To buy digital money you should have a wallet that can hold the currency. An account should be created on an exchange where physical money can be transferred and digital money can be bought.
Coinbase is one of the most common trading exchanges. Here you can not only create a wallet but also trade cryptocurrency
At present cryptocurrency is in use in certain countries and banned in some. In the future laws of countries might change and physical money can become digitized.