Paper Money vs Crypto Currency Blog

Paper Money vs Crypto Currency

The Era of Monetary System

The argument between paper money and Crypto is getting too much hype in recent years. In this era of digitalization, our day-to-day stuffs along with our very own money is rapidly becoming digital. Some people are seeing this as a monetary revolution while some people don’t want to accept it. I believe that everyone had heard of Crypto currencies. This is totally different from any other digital money. Apart from all the hype regarding paper money and Crypto, also the debate about which one is best, let’s explore this topic by first discussing the history of money.

History of Paper Money and Crypto Currency

China is the first country that came along with the idea of paper money in 700 to 800 A.D. Before that metal coins were used to buy everything. From that day till now the form of money has changed remarkably. The valuation of money has also changed year by year. Now we have Crypto currencies such as Bitcoin, Ethereum, and many more. Bitcoin is the first and most popular Crypto among all. An anonymous programmer by the name of Satoshi Nakamoto, created Bitcoin in 2009. By the time the value of Bitcoin has increased in such a way that no one had ever imagined.

Advantages of Crypto over Paper Money

Crypto currencies are decentralized, unlike paper money which is centralized and controlled by the Central Bank. The bank can manipulate the paper money and they can print as much as they want. But in the case of Crypto, the owner has full control over their money.
Crypto can be used for investment. Its scarcity nature makes it as valuable as gold. Because we cannot create unlimited Crypto currencies for our requirements.
According to many people, crypto can diminish corruption. Cash can be duplicated but Crypto cannot. The technology used in crypto makes it impossible for a person to copy this currency.
The underlying technology behind crypto is called the Blockchain. It makes every crypto currency safe and secure for its owners. And thanks to Cryptograph, we can track our every transactions easily.

Disadvantages of Crypto over Paper Money

Contrary to popular beliefs, there is always a fear of cyber-attacks in the Crypto world. The owner needs to be very cautious about their money. The vulnerable nature of Crypto makes it easier for attackers to seize our money permanently.
The scalability of Crypto is still questionable for many people. Because no matter how valuable it became but the whole infrastructure around Crypto is still immature. Since there is no central authority who can set some boundaries in Crypto.
Not everyone has the ability to access Crypto. It requires a high knowledge and understanding of the Crypto market. A person who is interested in Crypto needs to do prior research and study before jumping into the Crypto world.
The mining cost of Crypto is higher than making of paper money. Crypto mining requires powerful computer systems which take a ton of energy to run the mining process smoothly.

What is the Future of Our Monetary System?

The argument is solid if Crypto will replace our traditional way of payment system. Some still hold a strong hope in supporting this argument. In spite of all the benefits and advantages of Crypto currencies, till now it is not trusted in many countries. China and eight other countries have banned payments using Crypto because of its volatile nature. Although various factors are there.

Paper money reigns supreme place at this moment and will stay in the same position for a while. Because the reason is simple, it is trusted by everyone. Almost everyone understands how it works, unlike Crypto.
However, Crypto may not have the support and trust. But we have to accept that the Blockchain technology has the power to change our monetary system. Most of us don’t know how Crypto transaction works. Do you know the reason? The lack of knowledge and education.
We need to have the mindset to implement it in our current payment system. But the change will not happen instantly. In order to accept this change, we must go through the gradual adoption of monetary system.