Crypto or Fiat: Your Mileage May Vary

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In this jet age, an age of unprecedented advancements in science and technology, cryptocurrencies are one of the most talked-about advancements, yet, one of the most controversial as well.

Cryptocurrencies could be seen by many as a store of wealth, you hear things like this from some friends:

Take your money off the bank, buy so and so coin, leave it there for some time, and watch your money grow.

Really? Sound's quite intelligent and somewhat too good to be true; as a result, most people may wonder, which is a better value, physical money or crypto money?

In this edition of the @Hive-learners weekly featured content, I will be giving my opinion on this issue, and as usual, this is not a piece of financial advice, just my humble opinion.

Are Cryptocurrencies Digital Money?

To begin with, let me start by clearing off some specks of dust and a bit of misconception in terminologies.

Cryptocurrencies are digital money; but not all digital money are cryptocurrencies.
@zestimony

This is a very important point to note in this digital age. Digital currencies can come in many forms, and cryptocurrencies are one of them. Cryptocurrencies are unique because of the technology on which they are based, which is commonly called cryptography, and how transactions that are done on them are stored a processed through a publicly available ledger system/database known today as the blockchain. Cryptocurrencies are usually decentralized in nature note the word - usually .

Digital currencies exist in other forms other than cryptocurrencies. A very common form of this is the Central Bank Digital Currencies (CBDCs, for Nigerians, you can take your mind back to the e-naira project that gloriously failed). These currencies are more akin to paper money, as they are just the digital copy of your notes. Any item that stores monetary value in a digital form including things like gift cards, website tokens, money available on your bank apps, and more may be considered a digital currency. One unique feature of digital currencies other than cryptocurrencies is the fact that they are all centralized.

So, with that out of the way, my focus will be on digital currencies in terms of cryptocurrencies and not including other digital currencies like CBDCs.

My Preference for Money: Crypto or Paper cash

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Currently, I go with both, though one seems to have a more prominent place in my daily activities than the other, and I am sure you guessed right - paper money; while the other has a significant role to play in my financial status in the nearest future.

Making a Case for Physical Money

Crypto came to change the world and remove power and control from a centralized body, a move that has been fought against by numerous governments and financial bodies. So, basically, cryptocurrency is good for me as an individual but bad for the government and her established financial institutions. So, for this reason, crypto adoption has been very low and in some places, using crypto could be considered a crime, so, paper money just has to stay.

Making a Case for Cryptocurrencies

Cryptocurrencies have had a very high economic impact on me. While the term economic impact may cover both positives (profits) and negatives (losses) which crypto has been, I will dwell mostly on the positives.

For me, cryptocurrencies are one of the best ways I have discovered to store valuable financial assets. While you can store wealth with any cryptocurrency, the high volatility of cryptocurrencies, in general, spurred me to use only stablecoins for this purpose. So, most of my savings are held as stablecoins and my paper cash wallet is hardly more than an equivalent of $20 daily, and my bank is the same.

Cryptocurrencies are just fluid and open up more opportunities to profit from your savings than the traditional banking system does. I am currently eying the opportunity to invest pHBD-USDC on the Polygon network. The profits promised per annum in whole and in part are basically unmatched by any form of savings achievable through paper money or storing money in a digital form in traditional banks.

Unlike the physical money in which their is either a logical/practical limit to how much one can hold, or a limit placed by the financial systems on how much one can hold, with crypto, there are no limits.

Final Words

It is difficult to pick between the two types of money. Each has a vital role to perform in our lives. In a world where cryptocurrency adoption has been slow, particularly in some nations, we must rely on conventional money for day-to-day transactions. However, in a world where banking systems and governments make it difficult to accumulate wealth, we rely on cryptocurrencies for wealth creation and storage.

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Thanks for Reading through



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12 comments
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Indeed.. it is a hard pick to make as both of them solves problem in their unique ways

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Exactly so. I think, for the best part of human history, both will continue to coexist. Most economies can't afford to let go of any.

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Yes you are right, the both currencies plays vital roles in our daily lives but why I prefer crypto it doesn’t make you feel you have money until you convert it to real money and helps to track your daily expenditures while real money we use it daily which is still helpful too.

Thanks a lot for sharing this with us

Nice post💯✅

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Lol.

It doesn't make u feel you have money till it dips too. Then your heart will now be doing you as if you had a heartbreak.

Thanks for stopping by!

I appreciate your input.

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Both are actually important as both have contributed to the economy. But with the current development, crypto has the future.

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Yea. Though I think cryptos future is now. Most economies can't afford to integrate it into their systems.

So, the best thing now is what crypto developers do with crypto. Like Hive is one of the most useful cryptos that will definitely stand the test of time. Other currencies must show good and real world relevance before they make a true part of the crypto future.

Thanks to DeFi systems, we can now save with the prospect of a high APR, but you know, we cannot trust DeFi developers as much as we trust our banks today.

I think the future will be when the government and banks starts finding use cases for crypto than fighting it.

So, after all said and said, I agree with you that crypto is the future.

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The both them would have to step in for each other, because they both have advantages and disadvantages to be very honest.

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One thing I am sure of is that, as long as the government is unable to figure out a way to control crypto, they will always be against it. Because then we would have absolute power over our finances and will be free to do what we choose to do with it.
Thank you for sharing this with us.

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Exactly so! Government is all about governing (control), and take that from them, which is what crypto is trying to achieve, then, you render them powerless.

Thanks for stopping by!

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