Nowadays, the global economy still relies on cash as a lead role in the economic world. Governments have a pretty good reason to just stay on the cash side because it’s a good way to collect tax money and also a good way to regulate and dictate any currency in which taxes are paid.
Before digital currencies were a thing, similar thing like this has occurred with the gold standard when it was used as a back up to currencies. Thus, banks that have gold in large reserves also mean that they have large reserves of cash because cash value is based on gold value. So it’s pretty much the same. Today, we just use zeroes and ones and we are striving for a cashless society. But making bold predictions thatwould completely replace money is a little bit over the edge. Digital currencies are surely gaining popularity but there are still a lot of psychological barriers that prevent this from happening.
What’s also important is that unlike fiat currency, cryptocurrencies cannot be debased by any government because they are not tied to it. So, fiat currency can become worthless when a government gets replaced or completely falls apart.
On top of this, it seems like we are hesitant to accept the fact that cryptocurrencies are quickly becoming a new kind of currency. For example, Bitcoin is already ahead of the dollar and is right now worth thousands of dollars. People who have never heard of the crypto world are joining it and start jumping on the bandwagon.
In the end, while cryptocurrencies replacing fiat money is definitely a possibility, it is not something that will likely happen in the near future – according to experts.
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