Consumer spending heavily relies on digital currency and perhaps someday paper money will be obsolete. It may sound fantastic but consider how frequently you yourself use a credit card to purchase things, go online to shop, or receive gift cards preloaded with a specific amount of money. Most likely you pay your bills via online banking, pay-at-the-pump with a credit card, and even purchase movie tickets online. When you consider how often you actually use digital currency on a day-to-day basis, we aren’t really that far off from going entirely digital with our currency.
A new idea comes from Google. With Google Wallet, you can store your credit cards on your smartphone, along with special offers and coupons. Use your phone to pay merchants who accept Google Wallet with the tap of a button on your phone.
The Bitcoin revolution?
Bitcoin has been available since 2009 and is a peer-to-peer digital currency.
It may be used to purchase products and services online. The technology behind Bitcoin is considered to be extremely hard to hack, which assists in easing most security concerns.
Of course, Bitcoin is hardly a worldwide digital currency. For one thing, it is not legal tender. So most retailers, even in the online world, don’t accept it, and there’s no guarantee that Bitcoin won’t simply disappear. Entrepreneurs may produce an alternative digital currency that proves more popular, and consumers could instead flock to that. This could render Bitcoin valueless.
The digital currency model
There are many advantages to ditching paper money. You can’t lose it, you don’t have to worry about having exact change, and there’s no need to replace damaged currency, which saves time, energy, and funds.
Digital currency is also more secure. Should you be mugged and carrying a fair amount of cash, it is very unlikely you will ever get that money back. If your credit card is stolen, however, you can quickly call your credit card company, cancel the card and recover most if not all of any fraudulent charges to the account.
Not everyone is sold on the concept of digital currency. Many people still don’t use credit cards or even have a computer. They prefer to use paper money, as it feels more real to them. We will just have to see how the world changes and if the luddites out there will change their minds.