This weeks featured content question- Physical Money or Crypto from #hivelearners:
Ever since cryptocurrency became a thing and got the attention of the world, many governments have been against it while others embraced it. What about you as a person? Do you prefer the digital form of money? Or you would rather use physical? Give reasons as well, we would love to know.
Do I like physical money, well yes, do I like to have or earn in cryptocurrency? The answer is yes too. I love money generally, and any form of money is acceptable to me as long as it is a valid legal tender, I want it all .
CRYPTOCURRENCY
Cryptocurrency is a digital asset that act and work like traditional money and can serve as a means of exchange. It functions as a means of exchange, and a store of monetary value. Unlike physical money and bank systems, It is a decentralized system that operates in a very secure way with minimal human intervention or interactions.
Trading via cryptocurrencies gives millions persons with smart devices the chance to perform transparent and frictionless financial transactions, without human intervention. Without intermediaries crypto users have greater control over their finances and privacy. In other words it is a seemless , more private and faster way of making monetary transaction without the hassle that one would normally go through with transacting physical money in banks.
But, cryptocurrency isn’t without its cons, and we must know them first to determine, if we can pick it over physical money. As it stands cryptocurrency is highly prone to price volatility and so invariably limits its users use and impacts their purchasing power negatively.Correct me if am wrong but cryptocurrency is prone to online theft, cases of forgotten wallet password and accidental loss and with no intermediaries involved it is always difficult to impossible to recover what ever is lost monetarily.Also
Cryptocurrency with fixed number of units are susceptible to deflation.
Although it is fast becoming an acceptable means of transaction around the world today, if one is aware of its cons we can make informed decisions of wether or not to make it a major, dual or partial from of our monetary transactions and saving.
FIAT/PHYSICAL MONEY
Physical money can also be termed as fiat. Physical money means government issued currency. It is usually the accepted legal tender for buying and selling and transactions of a country. Physical money gives banks especially central banks control over the economy because they determine how much money is printed and should be in circulation.
When it comes to local means of transacting, physical money surfices. One cannot make crypto transactions to buy or sell in certain areas of the world. For example my country Nigeria, I can’t go to the local market where food stuffs are being sold and intend to make payments via cryptocurrency. The avarage to even enlightened Nigerian prefers cash in hand. Making E-transfers is even gaining slow acceptance gradually but the most accepted means of buying and selling is with physical money.
So the real question is can we put cryptocurrency against physical cash?
Fiat or physical money is mostly always the end payout of every crypto transactions. If I have a crypto account where I need to sell off part of my cryptocurrency to get money to spend on my personal needs, I would have to convert whatever unit of my crypto I wish to convert into physical cash still.
I remember my first transactions on hive a few weeks ago, I first converted my HBD into Hive and then BUSD before I sold it for its equivalent in my country’s currency.
Personally, I appreciate crypto even with the little knowledge I have of it, I appreciate the fact that it has a way of doubling amounts when it value rises, that’s the best part for me. If you had asked me a few months ago if I would be opened to receiving payment via cryptocurrency I might say no and send you my bank account details to send me money I understand rather, but since being on hive, one has to have at least a basic understanding of cryptocurrency and ever since having such understanding I have come to accept crypto transactions and I think it has a viable and solid future and I am all for it.
Physical money can never be replaced with cryptocurrency not in the nearest future, I personally do not see it happening, it would take a lot to get those women in the market to give up their physical money for crypto.
In my opinion crypto is only for the enlightened few as it is, and as long as we cannot reach the people at grass root with the knowledge of crypto, it would always remain a means of transactions for only a fraction of people that understands it.
So do I accept physical money, well as unprofitable as it is to keep money in bank, Yes I would, if I want to keep making everyday transactions.
Will I accept cryptocurrency and make transactions via cryptocurrency, still Yes, hive has already given me the opportunity to be part of the crypto world.
Ps: to my crypto gurus, feel free to correct me if am wrong and also drop your 2 cents.
