Many countries today use money for their local transaction, so they use of Fiat money is an important part of every society, but there are many challenges involved in the use of money for transactions, What are some of these challenges? Why is crypto best for transactions? and how can we over the challenges of using money for transactions? These and many more we will be discussing in this article.
- CHALLENGES
Challenges are things that makes it hard for one to achieve a desired goal, the can be forces that makes someone not to get to a certain point. And if we desire to reach a certain point these challenges needs to be overcome. Challenges can be seen in different aspects of life and to overcome them efforts and determination is highly needed.
The use of money for transactions has many challenges associated with it, now let's discuss the term 'money'.
- MONEY
Money is a medium of exchange, which simply means that goods and services are exchanged with the use of money as a basic tool for transactions.
Money transactions comes in two forms
the cash money
the electronic money
The cash money are tangible money which one can hold physically, just as the name implies the are in cash and are mostly in paper bills. this paper bills are issued directly from the government, and are controlled by them. it can be used for transactions of goods and services, whereby the buy pays cash at that point no need for any electronic device.
The electronic money are money which cannot be hold physically but are stored and used electronically, this kind of money are usually stored in the banks, or other financial entities where money can be stored and then being used electronically for transactions.
Money has many importance, one of them is that it can be used for transactions, which is payment for goods and services, and this can be done easily with the use of money. secondly, to offset bills; most bills and loans are payed with the use of money, so not only is it used for transactions but it can also be used to offset bills. And before the official use of money various means we used like barter system, which is use what you have to get what you want and during this period it was hard to do transactions because double coincidence of wants affects the system. So when money started to be used as a medium of exchange it helped in development and stopped the problems been caused by barter.
- CHALLENGES OF USING MONEY
There are different challenges associated with the use of money as a means of exchange;
INTERMEDIARIES: There are many intermediaries associated with the use of money, for example the government controls how more is being used, circulated and stored. The government being in charge of it is a deep challenge.
LACK OF RECORD: Cash transactions most times are not recorded, so the do not have any electronic record and it is untraceable, and this is a challenge because no pass Transactions done in cash can be traced.
TRANSPORTATION FEE: For large amount of cash to be taken from one place to another transportation fee is involved, and during this transportation because of uncertainties security personnels are needed, so transaction fee couped with the security fees more money is being spent with the use of money.
SECURITY: This is the most difficult challenge in the use of money for transaction, because carry money from one point to another is risky and can either be lost or stolen, most people carry money around are always afraid, even storing it inside a save can also be risky because theifs can break in at anytime and steal, And most times although security personnels can be assigned to guy the money the can be ambushed and everything will be gone.
- WHY CRYPTO TRANSACTION IS BETTER THAN MONEY TRANSACTION
Crypto is the best means of transaction and it is also best in Transactions, there are many reasons why crypto is best for transaction and why it is better than our traditional transaction system, lets discuss why crypto is better than crypto.
Below are some of the reasons why crypto trading is important and advisible;
- NO INTERMEDIARIES: This is one of the problem associated with the use of money we discussed earlier, in crypto no intermediary exist, everyone owns his or her own account and wallet, no government or bank can affect so ones Transactions, transaction can be done across borders and nothing can hider it.
VOLATILE: Cryptocurrencies are volatile, so it's value can add or increase in a space of time, so if one has some crypto during this time, he or she can easily sell it and make profit, although there are risk associated with the volatility of crypto.
FAST TRANSACTION: Transaction can be done with the use of crypto in a fast, easy and reliable way, unlike the use of money which are slow in nature and can take days before the transaction will go through.
HIGH SECURITY: Because crypto is decentralized a ledger known as Blockchain is being used to record Transactions, so transaction are recorded online and can't be erased or deleted.
These are some of the reasons why is best to use crypto as a means of exchange.
In conclusion, inleo as a community has a vision to create a world were web3 and cryptocurrencies will be valued, the have made many arrangements for this and has taken many steps to achieve this, in five (5) years to come, i believe that hive/inleo will make it possible for cryptocurrency to be accepted as a means of exchange globally, although in the pass money has been our means of transaction but there has been many challenges associated with the use of it, so crypto is the best means of transaction.
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