Recently, Cornell professor Eswar Prasad posed the idea that cash is no longer useful and will be obsolete within the next decade. Prasad believes that new digital assets are paving the way for a more useful and universal currency. And if that is to happen, then cash will no longer serve a purpose. To Prasad, and many other experts, gold coins will be replaced with Bitcoins, bills will be replaced with digital codes, and wallets will be kept in our phones, not our pockets.
With that in mind, is crypto in the position to replace cash as our standard form of currency?
Will Cash Become Obsolete?
How many people still keep cash in their wallets? And when we do, it always feels like we slow down the checkout process trying to find and receive exact change. Cash usage has been on a decline for years, with some countries almost entirely cashless at this point. In addition, the COVID-19 pandemic has caused an increase in automated services as well. Whether it was a concern over cleanliness or added automation, many services eliminated the option for people to use cash. More and more grocery store checkout stations are being designed for cards or chip readers only.
What Would Need to Happen?
One thing we would need to overcome if we were to go cashless would be to get used to not “feeling” our money. When you pay with cash, you physically feel the exchange – it brings back that traditional barter and trade feel. With digital money, you don’t get that same comforting sensation. You don’t see the physical evidence of how much you spent vs how much you have.
Another obstacle in the way of a cashless America is people becoming more comfortable with decentralized currency. Despite the benefits, people are apprehensive about change, especially when it comes to money. From an objective standpoint, it makes more sense for currency to go digital and for crypto to beat cash as our go-to.
Can Crypto Take Over?
We’ve mentioned before that cryptocurrency adoption is rising at an exponential rate, while cash usage is seeing a decline. More companies are allowing people to pay with cryptocurrency, people are trading a traditional salary for a crypto salary, and more and more Bitcoin ATMs are popping up at local convenience stores. With all of this, it seems like crypto is poised to become a leading currency in America sooner rather than later.
Cryptocurrency works on a decentralized banking system, which will allow the unbanked to gain control of their finances. The current banking system has its flaws, and modernizing the system will make way for a better currency and means of handling it that benefits people and businesses.
It’s the age-old question: how long will this currency be valid before it is replaced by something better? If experts like Prasad are to be believed, then cash has almost run its course. The penny has become irrelevant, and the other coins aren’t far behind. As cryptocurrency continues its rise in popularity, it is setting itself up to be the next go-to currency and replace cash in America.
Crypto is growing every day, with more ways to become a part of the financial revolution. Trust the Coinsource experts to help guide you into the world of crypto in case we someday say goodbye to the bills once and for all. Ready to make your first transaction? Here’s how you can buy Bitcoin with your spare cash.
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