Over time, money has undergone many changes and is still occurring in the current scenario. Being the greatest creation of humankind, it holds much power and undergoes many changes too! And at present, it has chances to experience some major historic transformations. After a long journey in various forms, money will now be digital. If you want to do safe bitcoin trading, check out how bitcoin is used for international money laundering.
This transformation is a great jump for money. Crypto experts are of the view that in the future, money will mean Cryptocurrency. The future of the fiats will depend on 3 contenders. To find out more about this aspect, make sure to read the blog.
The Change In Money’s Form In History
The future of money lies in the hands of 3 contenders. These are BTC, stablecoins, and CBDCs, which will be the future of currency.
BTC is one of the prominent public Crypto which has the aim of offering peer-to-peer transfers. In other terms, we can say that it is digital cash in the meantime. It is the first contender.
The second one on the list is Stablecoins. These coins have been backed by Dollars or other collaterals. Most of the time, they have a back of 1:1 with the USD. Also, the developers can design it in such a manner that these coins will have a peg for other currencies. The third kind is CBDCs which are issued by Central banks and the government. These currencies hold different influences and compositions.
A renowned historian James Burnham said that maximum people of the Middle Ages spent their lives without the interference of money. The major source of their economy was the barter system and subsistence farming. It is capitalism that brought a complete change in the use pattern of money. The capitalists started using money to generate more money by investing in certain assets or lending.
Also, gold and other precious metals were the base of money. This system was present till the initial years of the industrial era in the capitalist economy. Back then, people accepted money in exchange for something useful in their lives. Gold or other metals has utility as a store of value and its use in the form of money ended after the industrial era.
After some years, physical currencies were issued which shows the advent of globalization. With all these transformations, we can say that money has changed in so many forms. So, it is safe to say that, digital money is not too far! We are on the verge of another major shift in the form of money. And, may witness the same in near future.
The 3 Contenders As Money
For digital money, 3 contenders will act as money in the future. These are:
BTC is the top-performing Crypto of present times and is quite successful as well. It has the largest market cap and people are using it everywhere, from exchanges to storing value. Also, it does not require any permissions and is immune to censorship. This makes it effective for everyone to use.
Also, it has volatility and is energy-intensive, which is similar to other assets. With all these factors, BTC has a high potential to grow to become important.
To make the economy less volatile and more inclusive, these are some of the best alternatives. Issued by Central banks and the government, these currencies are a better way to tackle crises.
But, this system arises many questions from critics. The prime question is the privacy of the users as the government will be able to notice how each dollar is used in the economy.
This is the final contender and has the potential to become money in the future. These coins have the back of other fiats like Dollar and other collaterals. Though these coins have pegged value to fiats, they do not require any permission.
Also, they don’t depend on other parties for operating in the market and anyone can use them. Observing all these factors, we can say that these stablecoins have a first-mover advantage.
In the era of Cryptocurrency, it is not a surprising fact that money will be digital soon. Also, money has always experienced shifts in its form. And in near future as well, money will turn completely digital.-