Not too many people really think about how much cash they have in their wallet at any one time. They can go weeks without a single dollar on them and not even really notice. That’s because cash seems to be becoming obsolete. There are so many ways to pay for things and move money around digitally that there’s just not much need for it anymore.
Of course, there are still times that you do need to use cash, which always seems to happen when it’s most inconvenient and then you have to go to an ATM.
This begs the question: Will cash become obsolete one day? Will it slowly be phased out?
In this article, we will go over the idea that cash may one day be non existent.
The rise of cryptocurrency
When Bitcoin was invented about a decade ago, the idea was that it could replace cash issued by a central authority. Either a reserve or government prints and distributes actual cash in the form of fiat paper money. Cryptocurrency has no central authority and is created by so-called miners.
There is a limited amount of it, too. It can’t just be printed at will or even destroyed since there is no authority to do so and there isn’t even a physical coin or bill.
Bitcoins and other cryptocurrency are just data on a hash on a blockchain and can be bought, traded or even used to make purchases since the blockchain resides on millions of different computers rather than one server, it is extremely safe and secure.
So, it is a very attractive form of currency for many people. And as it becomes more mainstream and is more widely accepted as a form of payment, it is making cash far less appealing. After all, you can buy Bitcoin online with debit card in just a few seconds and then start using it to invest or purchase goods and services. But, the best part is that it can gain in value as you hold it in ways that cash never can. Especially with inflation rising, your cash is worth less today than it was five years ago for instance.
Cash is inconvenient
Paying for things digitally is so easy and fast that it makes the thought of always needing to have cash on hand really inconvenient. There are so many options for online savings accounts. In fact, you can take your entire banking profile online, including checking, savings, and investing (both self-directed and robo) and get favorable benefits as well. You can even use your phone as a wallet these days and pay directly from the many apps on your phone that connect your bank account so you can simply scan your unique QR code and have it taken out of your account directly.
As a bonus, many cash apps will give you credits or cash back for every purchase that you make when you use it on your phone.
Cash is unsafe
Imagine needing to walk around with hundreds or thousands of dollars in cash. And, also imagine if everybody had to do that. Thieves would know this and be targeting people to rob all the time.
It would be a very uneasy feeling needing to do this regularly.
When everybody is using a digital wallet or using a debit or credit card for purchases, then robbing somebody would be a waste of a thief’s time. People aren’t likely to have anything to steal.
*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.