Hello everyone!
This is my response to the Hive learners weekly contest.
PHYSICAL MONEY OR CRYPTO
Ever since cryptocurrency became a thing and got the attention of the world, many
governments have been against it while others embraced it. What about you as a person? Do you prefer the digital form of money? Or you would rather use physical? Give reasons as well, we would love to know.
History tells us that there was a time when trade by barter was the only way in which people exchanged goods and services. It was a barter system which people used to exchange one thing for another,either goods or services.
After many years, people started using metal coin as a means of exchange. These metals such as Gold, silver and copper were used as money,And they allowed people exchange goods and services over a long distance.
The use of Fiat money as financial experts would call, became predominant in the 20th century and has been a common and acceptable means of exchange since then.
Digital money on the other hand is relatively new, it is a more recent medium of exchange.
I cannot deny the fact that the use of digital money especially cryptocurrency comes with enormous benefits ranging from fast, easy and endless transactions, Accessibility, Transparency, low transaction cost, security, privacy, huge profits, returns and rewards, private transactions and many more.
Also, holders have full control of their funds because cryptocurrencies are decentralized. They are not in the hands of any central body or government which gives holders and investors to make and take their own decision.
The benefits of holding and using cryptocurrency are so much, much more than I have mentioned, but they also have their bad sides, which includes complete loss as a result of fluctuations in value, cyber crimes and insecurity. Also,crypto currencies are extremely volatile.
I can remember clearly when I started my Hive journey, the person who introduced me to Hive told me never to transfer any kind of crypocurrency to anyone that is far away because he or she can claim that the coin did not get to them. I did not understand it back then, but I think do now, crypto currency transactions are not traceable. Also, transactions made on a blokchain cannot be reversed.
Fiat money, which is used to refer to a government-issued currency, may have it's weaknesses and limits but it is still the most common means of exchange as of now, we can not disregard that fact and there is no proof that we can live without it.
Closing Remarks
It is not improper to say that cryptocurrency has an edge over fiat money because for so many reasons its benefits outweigh that of fiat money. However, I do not think we can put one above the other.
So I do not prefer anyone because I need them both.
Thank you so much for stopping by and for reading.
Until next time,
Much❤Love❤