Crypto Currency is a digital currency that has existed since 2009; the system has secured transactions and uses cryptography to secure all transactions made by the user. The currency does not have any regulating authorized personnel. Instead, it uses a decentralized digital system which records and secures all transactions. Some people use Crypto as stocks. That is, they buy them and then wait for the market to appreciate them afterwards; they sell at an excellent price which adds up profits compared to the price they bought before. Bitcoin and Cryptocurrency are similar because bitcoin is derived from the best-known Cryptocurrency, Tandon Revankar and Parihar, (2021). Cryptocurrency can be used or called a medium of trade, but digitally, it uses encryption systems to control monetary units and transfer verified funds. People argue that Crypto is the future of money, but they don’t understand how it works. Besides being the most significant transformation of money since the invention of cash, it can’t buy a cup of coffee, but it can buy NFT’S. The blockchain is responsible for binding them together, a decentralized computer network that verifies transactions (Asaf, Rehman and Kim, (2020). Sometimes for a single transaction to be made by bitcoin, it can take almost twenty minutes which can be slow at a point. To answer the question of whether crypto and bitcoin currency is a scam or if they will be the future replacement of money, you must understand how it works and their impacts. The currency can be compared to owning an address, key, or account that only contains the virtual currency.
While making payments, the transaction is sent from one address to another, and automatically they are recorded on a public block. The blockchain then makes sure the data on all bitcoin historical transactions are available. There are many positive and negative possible outcomes if cryptocurrencies take over the exclusive use of cash (Mendoza, et al., 2019). One of them might be too much usage of the newly adapted currencies which will make traditional currency lose its value and become useless quickly, affecting some people losing their fortunes. If Cryptocurrency takes over cash, analogue institutions would likely be affected because of the lack of upgraded gadgets such as computers and smartphones (Helbing, 2021). This will affect the institution’s transaction terms, forcing them to change their ways and upgrade to continue the new business world. The government will also suffer if the currency takes over because it has control of its country’s currency; this will be very hard to regulate the amount of money being distributed. This means that Cryptocurrency will be much less controlled by the government, which will be hard to determine the amount of money to be printed (Kelleher, 2021). The cryptocurrency new coins and tokens will operate independently on all mining operations. Some Investors may seem so happy to hear Cryptocurrency has taken over. Still, the changes will happen quickly, challenging and unpredictable, affecting many small businesses that will not accept the currency. Cash has been declining and dropping if inflation continues, money starts losing its value; if possible, another stable currency might replace it.
Advantages of Bitcoin and Crypto Currencies
All Bitcoin transactions are permanent. Money held in bank accounts was expropriated from the vendor, making it seem never to exist. Bitcoin is immutable, making it impossible to edit any transactions recorded on the database by any server. Bitcoin, compared to a bank account, does not require a person to trust any financial organization-organization (Marella, Et al., 2020). Crypto cuts off any mediator, such as banks. Blockchain will help by ensuring there will be no transaction fees while paying or purchasing something, and all transactions are saved, secure and uneditable. Crypto is quicker in making transactions; that is, while making payments, bitcoins are transferred from one digital wallet to another using a website or an app. Due to the upgrade in technology, such as smartphones and computers, the currency is widely used in large organization-organization to make payments. This shows that you do not require any money on hand to make any transactions, making it easier to make payments on your smartphone. The blockchain allows all transactions on all currencies to be used; that is, it helps in, and it’s easier to do any currency conversion. Cryptocurrency is more flexible and beneficial compared to cash. When Russia invaded Ukraine, most of the people who fled to other countries used Cryptocurrency, which helped them to purchase some of their essential needs. Most business people use bitcoin because of the rise of inflation on money which helps with savings and runs the business smoothly in all transactions. Crypto Currency is much easier to use because the transactions are direct and do not involve third parties (Amsyar, Et al., 2020). As mentioned earlier, the transfers are made secure using private keys and different systems. The government manages cash, while Cryptocurrency is not currently under any authority.
Disadvantages of Bitcoin and Crypto Currencies
According to the United States government Federal Bureau of Investigation, criminals have been using cryptocurrencies for illicit activities such as selling drugs and money laundering on the dark web. Cryptocurrencies need internet connections and a smartphone or a computer that also needs and consumes energy (Silvano and Marcelino, 2020). Trading in the marketplace has been making Crypto suffer, which also makes bitcoin crash the value; the United States in 2017 suffered a loss of $7 575 from $17 738 from December to April. Cryptocurrencies are vulnerable to Federal bureau investigators when so many transactions are made. This makes them pseudonymous because it leaves a trail that might help the government know all transactions made by citizens. Ownership of bitcoins has been in demand because 11 000 people roughly had 45% and were affected by the surging value, which made so many losses to the people who had already invested in it. Due to a lack of authorized personnel handling it, cryptocurrencies can be hacked, repositories, exchanges and wallets are hacked, and millions of dollars were stolen in terms of coins.
The currency is limited to the illiterate, for the people who haven’t upgraded the new technology and did not manage to attend school might be affected when the currency takes over cash. Most small businesses with low profits during the day might be affected when Cryptocurrency takes over because of the upgrade in technology and lack of capital to have what’s needed to set up a cryptocurrency. Many common ways of earning are by buying Cryptocurrencies such as Bitcoins, Ripple, Ethereum and Litecoin, which you have to wait until their value rises to sell at a profitable price Park and Seo, (2022). Change in technology might be affected when Crypto takes over cash, which might take a long time, interrupting the regular functional flow because technology might be altered a little bit for it to flow. Cryptocurrencies have no regulations, which might seem like an advantage that doesn’t make sense. Some people in the United States have not yet believed in it because it’s not under any supervision in banks or reserves, which makes it the possibility for it to implode.
Conclusion
The United States has reported over 30 000 bitcoins ATMs primarily found in gas stations, liquor stores, supermarkets, cafeterias, and other small kiosks. The rapid growth of bitcoin ATMs has influenced partnerships with Visa Payments giants and MasterCard’s, enabling banks and other firms to offer consumers the ability to spend and invest in digital currency. Most of them can convert the coins into real money and also have options of buying and selling, which transmits the currency. According to Saylor’s interview in Coin Desk Television, she said paying for things with Cryptocurrency does not make sense because it’s an appreciating and stable currency, she suggested it makes sense to pay with a depreciating currency. Bitcoins can take over the cash because the blockchain enables people to make transactions on its cash app, which has grown over the past two years. If Cryptocurrency takes over cash, analogue institutions would likely be affected because of the lack of upgraded gadgets such as computers and smartphones. This will affect the institution’s transaction terms, forcing them to change their ways and upgrade to continue the new business world. The government will also suffer if the currency takes over because it has control of its country’s currency. This will be very hard to regulate the amount of money being distributed.
Cryptocurrency not involving banks or any other third parties will make it hard to be controlled by the government, this will be hard to determine the amount of money to be printed and the amount of money to be distributed to avoid the loss of value in it. Technology change might be affected when Crypto takes over cash. It might take longer to interrupt the regular functional flow because technology might be altered a little bit for it to flow. Due to a lack of management or any third parties, there are protection risks. Most people have been forced to add a third party which also affects the entire investment due to loss and theft. This has made the government seek involvement to make it a secure currency to reduce the market drop, it’s visible that the currency does not want any market deals with the government or any firm because any gains selling or buying the firm would want a certain amount on it. The Internal Revenue Service suggested that a transaction of above $10,000 should be taxed; Cryptocurrency has also been avoiding all of this, affecting the consumers. Most of them will avoid such transactions to avoid tax payments.
If Cryptocurrency takes over cash, some people might still be using it because the currency is limited to the illiterate, for the people who haven’t upgraded the new technology and did not manage to attend school might be affected when the currency takes over cash. Most small businesses with low profits during the day might be affected when Cryptocurrency takes over because of the upgrade in technology and lack of capital to have what’s needed to set up a cryptocurrency. The currency might also have a price drop as money faces because trading in the marketplace has made Crypto suffer, making bitcoin crash the value. The United States 2017 suffered a loss of $7 575 from $17 738 from December to April. Cryptocurrencies have no regulations, which might seem advantageous but doesn’t make sense. Some people in the United States have not yet believed in it because it’s not anyone’s supervisions bank or reserve, making it possible for it to implode. People have been making millions of dollars on Crypto, which has helped them to invest in their businesses that involve cash; there are high chances that it will affect consumers negatively if the currency takes over the entire use of cash. One might be too much usage of the newly adapted currencies, which will make traditional currency lose its value and quickly become useless. It will also affect some people losing their business assets and fortunes involving cash use.
References
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Silvano, W.F. and Marcelino, R., 2020. Iota Tangle: A cryptocurrency to communicate Internet-of-Things data. Future Generation Computer Systems, 112, pp.307-319.
Park, J. and Seo, Y.S., 2022. A Deep Learning-Based Action Recommendation Model for Cryptocurrency Profit Maximization. Electronics, 11(9), p.1466.
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