Money as we know it so farPosted on: October 22, 2017, by : Dan Muresan
The current system that handles our money, even if it has a lot of weaknesses, is still good enough for most of the time to make the world economy work and to make people to live a normal life.
People can easily store value in money and they can use it for buying stuff. Easy so far, these are the main functions of the monetary system.
But what if system could be different? What if it can be much better?
What do I mean by that?
Problems with money
To understand better, I have to explain what the current monetary and financial problems are, as we know it. So here are a few things to consider when thinking about money:
- Even the largest coins in the world, the US and the Euro have geographical restrictions for using them. In some countries, you cannot pay with Euro or USD. You have to change it in the local currency of the country you are in. So in order to do that, first, you lose time and second, you lose some of them.
- Privacy is another issue, because banks know all the existing payments you made either with a card or online. Banks also know where you were when you initiated the payments. So you don’t have the privacy when using your hard earned cash.
- Control. The bank is an institution that controls and keeps your cash. If it goes bankrupt, you may not be able to recover your money. There is a guarantee that each bank, so they are covered by national bank, but even if you recover them, it will not happen from one day to the next. Or the state could block incomes in times of crisis.
- Safety. The cash you have in the bank is still kept on digital form. More than 90% of worlds finances are not printed cash, but digital figures. The bank account is a string of characters associated with your name. In that account is a sum of money that is actually a number in an electronic database. You have to rely on cyber security systems. There have been cases in which cyber criminals broke these databases and got that information. People’s money was compromised or even gone.
- Expensive and slow processing systems. If you want to make a transfer of cash in another country, it’s a slow and expensive process. These transfers have high and non-transparent commissions and it takes forever to get the money sent from one country to another.
- New money is created from nothing, so the power of those who are in circulation is decreasing with time.
- There are cases where certain institutions or people are denied access to the banking system based on different reasons.
- There are poor countries where most people do not have access to banks. If they have a relative in another country, they can only send money through Western Union with huge commissions.
- Really? In the Internet age we still talk about hours and days of work?
Next generation of money
I think you agree with me that these are real problems and are bad because it costs us time, money and nerves. Solving these problems, or some of them, would be a big step ahead from the current situation.
Crypto-currencies are the next generation of money. They offer a good alternative solution to all of the incidents listed above. There are many good crypto-currencies, and some are better than others. Knowing which ones to invest in so you can benefit from stability and security and also wealth, is crucial in this new crypto era.
In fact, there are actually more than 1,100 crypto coins.
Because of these advantages that crypto currencies have when comparing them to classic money, I’m convinced that crypto-currencies represent the future and sooner or later they will fundamentally change the current financial system and replace the physical money completely. In fact, it’s already happening.
Maybe you’re wondering what’s up with them and how to solve all the issues listed above. If you want to understand how crypto-currencies work, let me explain what the technology is that gives it the superpowers I’ve been telling you: it’s called Blockchain, and you can read all about it here.