Bitcoin appeared to be championing the cause for digitization and revolution of the concepts of money at the beginning of the cryptocurrency boom. Until early this year, Bitcoin accounted for the vast majority of market capitalization in the industry. Meanwhile, Ethereum, Ripple, and other currencies raced to catch up in a period of just weeks. The rapid turnover in the industry has some analysts questioning whether cryptocurrencies are really currencies, though Bitcoin is still in the lead. Some are predicting that there may be even bigger changes ahead. Among the many predictions is the idea that cryptocurrencies could come to replace cash ultimately.
There Is A Concern: should Cryptocurrencies Replace Cash?
There are concerns for the mainstreaming and widespread adoption of Bitcoin or other cryptocurrencies over traditional paper currencies.
- If cryptocurrency outpaces cash in terms of usage, traditional/fiat currencies will be largely devaluated. It could become another valuable item in several national museums in future.
- The technical resources to facilitate and anchor the consistency and adoption process would further stress the economic infrastructure if cryptocurrencies take over entirely, new infrastructure would have to be developed and deployed in order to allow the world to adapt.
- The transitioning would be out-rightly difficult. Fiat currencies would rapidly lose relevance and could result in demurrage and devaluation of physical properties. This strain could immense effect on already existing financial institutions
- Governments would also be affected in the transitioning. The decentralization of the blockchain allows for a much less marginal entry point for government control and regulation as was the case over central currencies. Governments would have to relinquish the power to determine how much of a currency to print in response to external and internal pressures. Rather, the generation of new coins or tokens would be dependent upon independent mining operations.
However, the pros outnumber the cons. There are always resistances to the adoption of changes and there have been several analysts who have downplayed the possibility of the adoption of cryptocurrency as the major barter in the world. There are several other constraints and limitations, but there are also endless possibilities with the eventual introduction of cryptocurrency or bitcoin as a widely accepted legal tender.
In the eventuality that cryptocurrencies adoption exceed fiat currencies’ at some point in the future. One significant factor is that cryptocurrencies, mostly due to their decentralized and uncontrolled status, may not be manipulated as easily as fiat currencies. Beyond that the idea of a universal basic income could be better served by cryptocurrencies than fiat currencies can. In fact, some programs have been experimenting with the use of cryptocurrencies already as a way to distribute a basic minimum income. In addition, in daily transactions, cryptocurrencies may help to get rid of intermediaries. This will lower business expenses and benefit customers.
Bitcoin, as of November 2020, has experienced a steady rise to $15,000 per BTC, but it was not always so steady. Cryptocurrencies like bitcoin and ethereum have indeed proven resilient. In recent months, investor interest, both retail and institutional, in digital currencies has risen dramatically. While in many instances the trade figures for individual investors are down, institutions are climbing on board for the first time in a significant way. Institutional investors make it possible for considerably large investors to trade higher volumes than most individual investors, ensuring that the industry can sustain at a pace that allows integrations and developments that would bolster the move for mainstreaming of the digital currency.
A number of future changes are expected to take place in 2020 and 2021, which could have a huge impact on institutional interest in the digital currency industry. However, in recent times, some promising enterprises have revolutionized the digital currency world and have shown the roadmap for the gradual if not sudden integration of digital currency, on whose blueprints, if well developed, researched and invested in could translate to a milestone and ease the transitioning from traditional paper currencies to a more nifty, better protected and less stringent digital currency that would ease commercial trading and activities, ease money flow and help mitigate the risk and human capital expended on moving around and safekeeping of the bulky paper currency.
One of the major players in recent times is Patricia.com.ng, an eCommerce platform that trades unused iTunes, Amazon, and Google Play gift cards committed to providing solutions for various eCommerce customers. Whose services, success story and track record have been built around the provision of an easier, well put together, user-friendly platform that allows for its customers to transact with ease and perform more transactions than is normally possible in the case of fiat currency. The innovative service allows individuals to swap gift cards for cash while also giving them the opportunity to send gift items to loved ones in the United Kingdom, United States of America, Canada and some selected African and European countries. The founder of the company At Patricia, Hanu Agbodje believes that to change the world, we have to change how online businesses are perceived in Nigeria first and beyond. This perception has and the concerted effort of patricia.com.ng has evidently improved the acceptance of Bitcoin and other coins on the blockchain and could subsequently lead to widespread adoption. Other noteworthy additions to the patricia.com.ng breakthrough in the revolution of the eCommerce that could lead to a wider acceptance include; Patricia refill, which allows customers to use Bitcoin to Pay Bills, Buy Airtime and Purchase Data, an instant banking option with seamlessly low rates devoid of the excesses of other financial domiciliary institutions that overexploit customers with access to a debit card for easy withdrawals of bitcoin.
Several other platforms are springing up all over the world and are working in tandem with blockchain enthusiast, laboratory engineers and investors to chart a course for the digitization of money all over the world and the institutionalization, adoption by corporate bodies and show of interest by countries in the global economy proves beyond doubt the endless possibilities and prospects and the potentiality of adoption of the cryptocurrency in a more digitalized world. There is no definite suggestive timeline for the manifestation or implementation of the thoughts and there is still a lot of work to do to bring this to actualization and as the world embraces globalization, the absolution of digital currency has become increasingly inherent and feasible.