Greeting Hivers
Here is my entry to this week's contest it's our week six edition two
Physical money or crypto
Ever since crypto currency became a thing And got the attention of the world, many government has 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 reason as well, we would love to know
As the world evolves, so does the way we spend money. with only eight percent of the world's money being re-presented in physical notes, we seem to be progressive towards a cashless economy.
The remaining percentage of our money is being transacted in digital form through credit cards and payment apps, so what is in line to replace our current cash culture.
The truth is that both crypto currency and fiat money has advantages and disadvantages to be taken into consideration.
Fiat money
Fiat money or physical money is usual means of payment, ordinary paper notes, money in our bank cards that we use daily. Example of fiat money: Nigerian naira, us dollars.
The fiat money is a legal means of payment that is generally accepted by the individuals in a given nation, which the nation recognize.
Fiat money has a physical expression like our paper notes. Behind fait money currencies are large financial institution that enables us to get and send our fund, we use banks which are the intermedaries between us and money. We cannot send money directly to another user except through our financial institutions.
Crypto currency
Firstly crypto currency is not a legal tender, crypto tokens work on the block chain, they only exist in the digital world and and has no physical equivalent. Crypto currencies are global and decentralized currencies that are received mainly by mining. For crypto there are no geophysical or political boundaries.
Due to government not backing it, it is impossible to use crypto currency as a means of paying taxes.
At the same we can send and receive crypto tokens without the involvement of financial institutions. Intermedaries are not needed. Example of crypto currency: Bitcoin, litecoin, and different other coins.
Similarities
Both the fiat money and crypto are used for the same purpose:
- Transaction on exchange
- Investment
- Lending
- Payment for goods and services.
Now the question is which do I prefer?
Will crypto currency replace fiat money today it is definitely difficult to answer this question cause crypto is still at the stage of it's development.
With the little experience I've had since I joined hive, I would prefer crypto currency
Making use of crypto currency doesn't require you to pay taxes. It enables you to carry out online transactions smoothly without interruption from any financial institution. Crypto currencies are reliable.
Unlike physical money if you have twenty thousand naira in your account, even if it stays for two years it remains like that but if you have that twenty thousand naira in crypto savings, it bond to increase as the days go by.
Cause you can't predict the future of crypto currency.
Crypto currency is accessible, anyone can access it, all you need is a smartphone or a laptop and an internet connection,the procedure for setting up a crypto wallet is very fast unlike opening an account at the bank.
It is well secured unless someone gains access to your crypto wallet private keys, they can't have access to your funds. And also should in case you lose your private keys there's no way to recover your funds. But we know what will happen if someone have access to your bank account.
Thank you for reading.