What is the future of money? Imagine walking to the restaurant and staring at the digital menu board in your favorite combo food. It’s just that, rather than the price of $ 8.99, it was shown as essor BTC.
Can Crypto really be the future of money? The answer to the question depends on the whole consensus on some of the main decisions starting from the ease of use and regulations.
Let’s check both sides of the coin (digital) and compare and contrast with traditional Fiat money with Cryptocurrency.
The first and most important component is trust.
It is very important that people trust the currencies they use. What gave the dollar value? Is it gold? No, the dollar has not been supported by gold since the 1970s. Then what gives dollars (or other fiat currencies)? Some countries are considered more stable than others. In the end, people believed that the government issuing government stood upright and basically guaranteed “its value.”
How does the trust work with Bitcoin because it is decentralized, meaning they are not government agencies that issue coins? Bitcoin sits on the blockchain which is basically a ledger online accounting that allows the whole world to see each transaction. Each transaction is verified by miners (people who operate computers on the peer to peer network) to prevent fraud and also ensure that no double expenses. In return for their services to maintain Blockchain’s integrity, miners receive payments for each transaction they verify. Because there are many miners who try to make money, each checking each other works for mistakes. Evidence of this work process is why blockchains have never been hacked. Basically, this belief is what the Bitcoin value.
Next let’s look at friends closest to trust, security.
What if my bank is robbed or there is a fraud activity on my credit card? My deposit with the bank is covered by FDIC insurance. The possibility of my bank will also reverse any fees on my card that I have never made. That does not mean that criminals will not be able to take action at least frustrating and time consuming. This is more or less peace of mind that comes from knowing that I will most likely be used as a whole of mistakes against me.
In Crypto, there are many choices when it comes to places to save your money. It’s important to know whether the transaction is insured for your protection. There are leading exchanges such as binance and coinbase which have a trace record that is proven to be wrong for their clients. Just like there are less than leading banks around the world, the same thing applies to Crypto.
What happens if I throw a bill twenty dollars into the fire? The same applies to Crypto. If I lose my credentials into certain digital wallets or exchanges, I will not be able to have access to the coin. Again, I cannot simply emphasize the importance of doing business with companies that have a good reputation.
The next problem is the scaling. At present, this is probably the biggest obstacle that prevents people from doing more transactions in Blockchain. When it comes to transaction speed, Fiat money moves much faster than Crypto. Visas can handle around 40,000 transactions per second. Under normal circumstances, Blockchain can only handle around 10 per second. However, the new protocol is applied to skyrocket this up to 60,000 transactions per second. Known as a lightning network, can result in making future Crypto money.