Will Cryptocurrency Replace the Printed Dollar?

This article was first published on the 4th of November, 2019 by Patrick Carpen.

The world is becoming more and more pro-digital everyday. Today, there are paperless offices which operate entirely without a drop of ink. But it doesn’t stop there. Digital photography has already replaced, to a large extent, the printed photograph. Email has replaced the posted letter and the list goes on.

There is another huge revolution whose currents rage beneath the placid waters of daily life: the cryptocurrency.

What is a Cryptocurrency?

A cryptocurrency is an emerging form of money which exists only in digital format. Some cryptocurrencies, such as Tether, were created by a parent company. Tether is a stable crypto always equal to one US dollar. Others, such as Bitcoin and Ethereum, are opensource, which means they have no parent company but is collectively owned by everyone who invests in it. The value of opensource cryptocurrency tends to fluctuate.

You can use your regular currency, such as the US dollar or that of your country’s currency (wherever you live), to buy cryptocurrency. Because cryptocurrency is still a new idea, when you buy cryptocurrency, you are said to be investing in it.

Some of the most rapidly emerging cryptocurrencies include:

Bitcoin (BTH)

Ethereum (ETH)

Litecoin (LTC)

So when you purchase cryptocurrency, what do you do with it? First of all, you can keep it hoping that the price will go up, and then sell it for a profit. To put this into perspective, back when Bitcoin was created in the year 2010, it was worth just 10 US cents. Today, in 2021, that same one Bitcoin is worth over 50,000 US dollars. Now imagine if someone had used 1 US dollar in the year 2010 to purchase 10 Bitcoins. Those ten Bitcoins would now be worth over 500,000 US dollars. So, effectively, the 1 US dollar would have been transformed into 500,000 US dollars.

But don’t get too excited! At that time, the Bitcoin idea was just a dream. No one knew if it would rise or fall, and we still don’t. In the early days, very few people actually believed in Bitcoin or the idea of cryptocurrencies. Needless to say, those true believers have made fortunes.

You can also use your cryptocurrency to pay for goods and services as more and more companies around the world are starting to accept cryptocurrencies. Many international banks around the world have started accepting cryptocurrencies such as Bitcoin in exchange for local currencies.

What are Some of the Benefits of Cryptocurrency?

• Greater security. Cryptocurrency is harder to steal and easier to move around.
• Easier world wide money transfer. Cryptocurrency makes it easier and less costly to send money to people all around the world.

Will Cryptocurrency Catch On?

That’s a good question! And it’s one to which I can only offer an opinion. Because cryptocurrency is still a new idea, many people are skeptical about it. It’s sort of like when the cell phone first came out – many people swore they would never carry one around – but today it’s indispensable, isn’t it?

The question of whether the cryptocurrency will eventually replace the fiat dollar is a bit of an awkward one because it still needs the value of the dollar to be measured against. But then again, with all the rapid advances in digital technology, who knows what will happen in the future?

Want to invest or learn more about cryptocurrency? Paxful is a good place to buy and sell cryptocurrencies. Signing up for a Paxful account is simple. However, because cryptocurrency websites come with high security, you will need to go through security processes such as verifying your email and phone number. As you invest more, you may also be required to verify your ID, and, if you become a really big investor, also your home address. Click here to sign up for a Paxful account and start your journey of exploring this revolutionary wave of financial transformation.