Is All Fiat Money Essentially Becoming "Digital"?

in life •  6 years ago  (edited)

Online-banking-741857.jpg

So, I was chilling with a friend yesterday and we had this friendly yet drawn out debate. He was of the mindset that crypto currency is too new a infrastructure to work in today's world. Almost as if societies on a global scale, are not technically prepared enough to start transacting in this way yet. I kind of replied that traditional "fiat" money, can also be seen as having a digital use-case, such as debit and credit cards. In that when we perform any transaction in this manner, numbers are either deducted or added to your "virtual" bank account, in the trust that it will be honoured by our elected third party. That being mainly our designated banks. He disagreed with this statement pretty sternly though, saying the two are completely different and not related in any way. However, what do you think?

When we view an online bank account, including our crypto wallets, we make the assumption that the valued contents are verifiable and therefore carry a certain amount of validity. In the case of bank accounts, figures corresponding to how much you have in there, are actually just a representational snapshot of your fiat portfolio in digital form. You don't physically "see" the money coming into or out of your account. You assume the central body responsible for this is taking care of your requirements on their side. That's the age-old system of "centralized finance" we've all been a part of for as long as we can all remember.

But I feel, in essence, we've now been almost "trained" to transact in this way. Last month, card transactions superseded paper ones for the first time in our history. From my point of view, the citizens of this world are already primed to accept digital currency as a store of value as well as transact with. After all, it's what so many of us have already been used to for so long. The "paper and coin" option, over time, should erode and be seen as nothing more than a primitive form of finance, making way for new technologies of replicate the perception of ones wealth. Crypto currency seems like the perfect logical next step.

But, as with my good friend, some people are still so resist to the prospect of "digital wallets" or "invisible money" that they refuse to acknowledge the concept alone. However, a concept they are already so familiar with. I just don't get it. What is so different in terms of procedure, when sending funds from a crypto wallet as opposed to a traditional bank account? In both scenarios, it's simply a number subtracted from the previous one beforehand. The fundamental method employed is essentially exactly the same. However, one provides a "centralized" third party solution whereas the other offers an independent user-orientated "decentralized" one. But again, the end result is the same, as well as the process. I simply don't see the two as being that different, to be honest. Or have I been involved in the world of crypto so long that the lines have blurred too much?

What do you guys think? Is this technological leap too much for the average person in today's world to get to grips with? I certainly don't think so, but would still be interested to get your thoughts.

PAGE-DIVIDER.jpg

Hope you enjoyed this post, please look out for more on the way... (author: @ezzy)


Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

I think many people are still attached to the idea that money is "a thing" you can have in your pocket. When people argue that cryptos are different from fiat in a bank account... I think that's really what they are trying to argue.

I think about Denmark (even though I no longer live there) and how many banks now are "non-cash." You can't even DO anything that involves "money" there, just services. And there's no such things as checks anymore, nationwide.

So really, we're getting close to the point where the only real distinction is "centralized" or "decentralized."

Man, excellent points made. The very concept of money is not "tangible" and therefore should be interchangeable with various mediums. :)

In a not too distant time the virtual currencies will be leading the monetary movement of the world, however I do not believe that it completely replaces the use of paper money.
excellent reflection what you have with your friends
I wish you a great day dear friend @ezzy

Definitely agree, buddy. However, I do think that given a long enough timeline, crypto will become the natural evolution of all money, however maybe not in our lifetime. Who knows, my friend?

Thanks for dropping by. :)

@ezzy me and my friend also start debating many times about all these things. Overall Crypto is a future. And it will be gonna replace all other payment methods in a future

Yep, without a doubt, buddy. :)

@ezzy i am always with crypto.. and i will be forever with crypto

U are given a perfect answer to your friend.I always notice that there are two type of people,one support and other against for a New Idea.

And we are the "new idea" generation. :)

Technologies are here to stay, we just have to wait a little bit more, cryptocurrencies are still very new, time have to pass to make people more confident about them, but believe me, time will pass on and there is going to be a day when we suddenly will notice that crypto's are part of our days.

I see it too. :)

I also found it absurd when even the Nigerian students did not believe in cryptos.
#cryptoisnotascam

Good article @ ezzy very complete and interesting the crypto is the present and the future

Thank you. :)

To the question in your title, my Magic 8-Ball says:

Yes definitely

Hi! I'm a bot, and this answer was posted automatically. Check this post out for more information.

Very good post friend, this excellent

Thanks. :)

China has taken up a lot of the money to mobile phone much faster than many developed countries. So much so, at Marks & Spenser in Singapore has Alipay but doesn't accept my Google pay. Seems they are more happy to have foreign customers than local ones. :-)