The world is moving towards a cash-free financial model. Think about it, when was the last time you paid for something with cash? Monthly debits, shopping, and takeout are all primarily paid for with credit and check cards thanks to the convenience of plastic and digital accounts. And now cryptocurrency is gaining popularity.
As the world moves forward, so does technology. Humans invent new things to make sure we travel faster, live longer, and generate convenience in all of its forms. One of these inventions – or progressions – is the abolishing of physical currency. Money in its physical form is difficult to transport, is susceptible to all manner of theft, and can be an inconvenience. And why it may never fully disappear, a cashless world will soon upheave a cash one as cryptocurrency gains momentum.
Cryptocurrency and blockchain are playing a role
You might have heard of Bitcoin by now. It’s a decentralized digital currency. Basically, you cannot touch or feel it and no country owns it. This makes the system extremely versatile as it’s not beholden to any country or political problem. Though it is currently highly volatile while it is not widely accepted or regulated. It can be thought of as a universal currency. While you may want to have an amount in your fiat currency, Bitcoin, along with others of its ilk, is without borders. Its numeracy is universal.
Though, it is not without its faults. Many banking institutions are looking to regulate cryptocurrencies, while many financial pundits and investors have called it a bubble. China has recently banned the sale of Initial Coin Offerings (ICOs), which has forced several traders to shutter operations.
Related: What is Blockchain and what does it mean for cyber security?
Along with the blockchain – a decentralized ledger that is held by millions of computers – it is creating a financial technology boom that takes the form of cryptocurrency. Industries have sprouted around just the mining of Bitcoin, with some users having PCs in the colder regions to use natural cooling to reduce costs.
One of the largest growths of the cryptocurrency revolution is remittance. Sending money to another country can be a costly and time-consuming process. Large portions of the amount being paid to various companies that handle the money, which can take a week to reach its destination. By using a cryptocurrency, the transfer happens in minutes and at a fraction of the price. It is helping those working abroad to send money back home to support their families.
And while this money can then be cashed out, these remittance platforms are bringing stores that will use the remittance money without having to withdraw cash into the fold. It’s an almost self-contained system that doesn’t require the input of any banks.
Related: A beginner’s guide to investing in Bitcoin
The apps are taking over
Smartphones have been a massive driving force away from physical currencies. Thanks to the ease of different app stores, the advancement of mobile technology, and mobile adoption, these devices are changing the financial world. Right now, you can download an app to consolidate all of your accounts, one to invest in cryptocurrency, and another to invest in various markets all with minimal effort. All of these options are created in order to streamline your finances.
Another advancement is that of mobile payment systems. More merchants and restaurants are accepting QR-code- based platforms. These apps are connected to a customer’s banking account and act as a check card. The benefit here is the ease of use and the low fees the stores pay when accepting payments.
Cryptocurrency isn’t just impacting physical cash, but money management as a whole. We have written an article on how technology impacts the wealth management industry, which includes specialized solutions, market prediction, and ease of operation.