Will Cryptocurrency One Day Replace The Money In Your Bank Account?
Mar 8, 2021
Digital assets for payment
Cryptocurrency is a digital currency. When you’re using cryptocurrency, rather than the traditional currency you may be paying your bills in today, your transactions are verified by a decentralized system. Backed by cryptography, and the availability of a public ledger, cryptocurrency is fast becoming a preferred method of payment across the globe. That’s left many people asking: will cryptocurrency replace the money in my bank account?
The traditional currency that our salaries are usually paid in, or that is used to pay our bills, is known as “fiat” currency. Fiat is very much controlled by regulation, banks, government reserves, and financial institutions. That’s why you can open a bank account at your chosen financial institution, so you can use the services of a bank to store your money safely, and use it to pay for goods and services that you need to live.
In many respects, fiat is familiar, and crypto is not. If you think about it, however, your chosen cryptocurrency could become another way to pay for the things you need, get paid for the work you do, and invest in the way you see fit. It may seem a little strange to think about at first, but settle in, because cryptocurrency may be how you get paid next.
The adoption of cryptocurrency as a method to make financial transactions is already far into its evolution. Wikileaks began accepting Bitcoin as payment in 2011, with many other vendors and service providers following suit. Wordpress initiated a Bitcoin payment option in 2012 and, as of today, there are now close to 6000 Bitcoin Automatic Teller Machines (ATMs) located across the globe. Yes, the same type of ATM you use to withdraw your money to go shopping.
While many companies have begun to accept cryptocurrency payments, it’s still rare to conduct major financial purchases. That, however, is swiftly changing, as several high-profile institutions - including Tesla and Mastercard - have outlined plans to accept cryptocurrency as a form of payment and transaction in the near future.
The future of finance
Making big purchases using cryptocurrency is slowly becoming mainstream.
So far, houses have been bought using cryptocurrency, crypto banks are being launched, and some companies pay their employee salaries in crypto too. It won’t be long until your bank account reflects a cryptocurrency balance as well.
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