Through the years, cryptocurrency has been deemed the future of finance, and the reason for that isn't far-fetched, because it has come as a decentralized alternative that not only removes the need for banks and their cunning behaviors but also abolishes government control like we've seen with fiat. It has also served as a saving grace that changes the status of a poor individual to becoming wealthy due to a few investments, but then the big question that has raised eyebrows over time is if the world can truly run on crypto alone. And if that were to be the case, would a world without a traditional fiat and banking system be a perfect way forward to achieving financial freedom, or would it ultimately become a chaos? In this article I'll be exploring the benefits and drawbacks such might have and then conclude with my own opinion.
To say the truth, since knowing about crypto, I must say that it's been a blessing in disguise for me, with loads of ways to earn and better my life. In fact, despite the fact that I have a job offline that takes almost half of the day from me daily, it doesn't pay me as much as I earn from blogging here on the Hive blockchain, showing how much of a blessing it presents. However, it's understandable that there are some downsides to cryptocurrency, from loss in investment to several others, and that's why I want to explore what it would be like if cryptocurrency becomes the sole legal tender of our world.
I'm trying to picture some of the good sides of what it'll feel like if the world runs 100% on cryptocurrency, and some of those are as stated below:
Decentralization would reign: in the advent that cryptocurrency becomes the only currency spent in our world, that means there won't be anyone controlling money like we do in our centralized banking system world today, and this would literally give power to each individual.
Fast and borderless transactions: With cryptocurrency being the only recognized and accepted legal tender in the world, it means transactions would become far faster, like the speed of light, unlike how traditional banks delay transactions for hours. It also means transactions can be done from anywhere without the need to visit a physical structure like a bank before a transaction can be made.
Transparency and security: One thing I've come to notice about blockchain technology is that it's tamper-proof and secure, unlike traditional banks that can be burglarized. Additionally, every transaction can be seen, making it transparent.
Financial inclusion:Saving the best foe last is this particular one.,Many people in our world today felt left out and can't really have financial freedom due to the way things are done, but with cryptocurrency,y a simple penny investment can change one's story and give each individual a voice inthe global economy that can be accessed with our internet connection.
But then, despite how great that sounds, it's worth noting that making cryptocurrency the only legal tender used in the world, and some of those that came to mind are;
- Price volatility: We all know that one of the downsides of cryptocurrency is how unstable it can become. You can wake up today a billionaire, and by nightfall you'll be a thousand naira due to the value crash of crypto, and in such a situation, it'll be difficult to name a price tag for goods and services for business owners.
- Security risks and scams: time after time we've heard stories of hackers carting away with millions of dollars in cryptocurrency, not forgetting the numerous scammers and the phishing links, rug pulls, and many others that can make people lose their wealth in an instant once there's a breach in the system.
There are other downsides, such as the amount of energy consumption needed to mine crypto, regulation and tax issues the government will want to introduce to crypto users, and many others.
Now with both angles cross-checked, what is my opinion? Personally, I don't think it'll be ideal to have cryptocurrency as the only currency, and neither do I think fiat alone is great, so I believe since both can coexist, why not just find a way to strengthen how they can both work hand in hand for the greater good? This would create a hybrid system that paves the way for cryptocurrency and fiat to coexist, and since many institutions are presently adopting crypto, I think this is a possibility of what's to come in this regard.
All photos are mine and edited on canva.
