In a generation where we find ourselves turning towards technology more often, it’s assumed the introduction to digital money would have been well-received. However, the arrival of Bitcoin and its lack of users shows that we might not be ready to give up the “old days” of banks and paper bills.
What is cryptocurrency? Although most people would recognize terms like ‘Bitcoin,’ there is a surprising number of digital currencies available – as of 2021, there are over 10,000 existing cryptocurrencies available to use. These use blockchain databases, which does as the name suggests and saved information in blocks chained together in groups, and stores this information chronologically.
Since cryptocurrencies are left in the hands of the public, it’s easier to transfer money without the use of banks, government, or other authority figures. The lack of supervision and having total control over your funds is one of the benefits user’s report. Since these exchanges work without the use of a bank, it allows anyone with a phone to make instant, 24/7 payments, regardless if they have access to a bank or not. Additionally, the minimal processing fees and the ability to send money to different countries acts as another advantage to the latest currency.
So why are people still skeptic? With how little people actually use cryptocurrencies, very little merchants accept it as a viable form of currency, and many more people would need to get on board with it in order for it to work. Everything being transferred online might make it more difficult for it to integrate into everyday life – and as we know, the internet is not a perfect system that may crash. If something happens, since cryptocurrencies are used completely online, there would be no way to get anything back.
It’s difficult to say whether or not cryptocurrencies will ever become a fully-accepted and practiced form of currency, but regardless, it’s certainly here and making an impact on the financial world.