When it comes to the finance world, crypto has made a significant difference in revolutionizing it, creating opportunities for millions of people across the globe. Yet, can the world run on crypto alone? That means a word without fiat and banks? No doubt, it's an intriguing question. While this sounds like a good idea as individuals like you and me will then have total control over our money due to the decentralized nature of crypto, there are also some concerns...
Why do you think is the reason why the government keeps fighting cryptocurrency? They understand that if the majority of the population embraces crypto, they will lose control over the numerous funds they control. The money they generate on taxes is what they use in building the roads, schools, hospitals, and other infrastructures you can think of. Whether they use the money rightly is none of our business, but as long as they remain leaders, they will continue to fight in securing funds for themselves.
Look at the civil servants; their taxes are automatically removed before they receive their salary. Other private business owners, if you need certain things from the government, you must provide evidence of paying taxes. It's as strict as anything, and that's one reason it looks difficult for us to have a full crypto implementation.
One important concern here is how volatile crypto is. Imagine having lots of crypto coins to use, waking up someday to an emergency, but then the volatility of crypto was actively affecting its value... you see your crypto coins reduced to 20%, what will you do? Crypto is unpredictable; it's not stable, so in this case, if you have some fiat, it's just the best to make use of instead of running at a loss at that point in time.
What about the uneducated? What about our aged market men and women that fill the markets? Depending on crypto alone wouldn't be funny for them. To most of them, despite the degree of tutorials you can think of giving them, they may still not know how to navigate the platforms. Those in rural areas without the Internet wouldn't have access to money, and that's a concern.
I am also concerned about the rate of fraud that will kick off if this is implemented. Remember, it's only keys those scammers need to render someone poor, and it's easy for many people to be careless with their keys. It's a decentralized platform, but risky too regarding security. I am also concerned about severe inflation, which is associated with the volatility of cryptocurrency, and more..
Aside from these concerns above, which are also the negative aspects of running a crypto world alone, I wouldn't overlook the positive side.All the hidden charges we do get from our traditional banks with any transactions will be a forgotten issue. We could have control over our funds, more private without government controlling it. I also feel that this idea will create financial freedom for more youths in our society, faster transactions without waiting for a queue or issues as they are in the bank. These and more are the advantages we stand to get when we run a world run on crypto alone. Maybe it could be possible in the future; who knows?
However, regardless of the benefits we can envision today, I prefer that both fiat and crypto coexist just the way we have it now. They are all important for our use, so why not find balance?
This post is in response to the #HiveLearners community contest on the topic titled, Crypto Alone
All images were taken from canva