Will Bitcoin Replace Cash?
Posted on September 30, 2014.
The Bitcoin community is growing each and every day. As a new member joins the digital currency world, the question ‘will bitcoin ever replace cash’ is burning at the back of our minds.
To even consider if Bitcoin will replace cash in the foreseeable future we must understand the basics of how the currency works. Bitcoins are earned online by completing difficult computing tasks and are exchanged between people directly therefore bypassing banks. Because bitcoins are stateless, they cannot be taxed, frozen or easily traced.
Bitcoin a Virtual Money Evolution
Some experts believe that Bitcoin is the first step into a virtual money evolution. They believe that Bitcoin could replace all the currencies of the world but it doesn’t seem very likely. People want to use the currency that most people use. This is a good thing. If Bitcoin became the standard currency of the US economy, its fixed money supply could pose a serious risk for the next economic downturn creating a depression.
However there is still room for Bitcoin. PayPal gained popularity as the conventional financial networks weren’t matching user’s online needs. However PayPal and other existing payment systems demand a cut of the price. Bitcoin operates sort of like no-fee-charged cash and therefore does not. Bitcoin is great for individuals looking for a digital equivalent of cast (i.e. no middle man) and could cause disruption in the online banking we know today.
It doesn’t have all the advantages of cash but the fact you cannot forge it unlike physical money is a definite plus. Bitcoin is peer-to-peer and every transaction has to be authenticated within the network. This means that you cannot spend the same coin in two different places.
The Bitcoin Community is Stronger than Ever
The downside to Bitcoin is that you cannot spend the currency without an internet connection. The digital money is also untraceable which could pose a lot of security questions in the near future. People are unlikely to dismiss conventional financial networks altogether but there is a substantial market for Bitcoin-based services.
The Bitcoin community is forever growing and within that is becoming stronger. Bitcoin is the start of something special. Although it is very unlikely that the currency will wipe out cash all together, do not be surprised when you see Bitcoin payment options pop up around your local town.