Bitcoin and cryptocurrency is the new mantra on everyone’s lips. Anybody who dares to admit that they are ignorant of this latest financial sensation is deemed to be illiterate and not worth getting into a conversation with. The rage over the digital currency is so much that there have been sections of the society that are questioning the need for cash.
There is no doubt that the future is exciting and we may eventually move into a cashless society but when is a huge question mark. Thus, for now, it is safe to assume that cash is here to stay for a very long time and will not disappear any time soon. Hence, those who are rushing to convert all their assets into cryptos can take a breather and slow down. Others who are looking at possibilities like the bitcoin trader, a trading bot must always ask themselves, “ Is it safe?” before investing in them because there are several unscrupulous companies that scam people and run away with their investments.
Why is cash the king?
Several studies have found that people even today preferred cash to pay for lower value goods over using a credit card or any other digital method of payments and mobile wallets and cryptocurrencies. It has been found that in emerging markets the trend is still to depend on cash because in these countries it is not easy to own a debit card or a credit card leave alone using the internet for payment.
Another reason why consumers hesitate to shift to a digital platform is the ever-increasing number of scams. A majority of the consumers are not technologically savvy; they might know to use the internet and make even some online payments but not everyone is aware of how to protect their data and themselves from online predators. People are not sure how secure they are online and hence prefer to not use any of the digital modes of payment.
Then there is a question of reliability; in most of these markets, the connectivity is still patchy and not secure. Further with companies vying with each other about having the latest technology, the consumer is confused and unsure if he is getting conned in the name of the technology of which he has no knowledge.
With regards to cash dealings, both the buyer and the seller know each other and this makes the transaction both secure and private unlike over a digital platform where you do not know which prying eyes are watching over transactions.
Thus, for now, cash will still rule the roost till a time when every corner of the globe is well-connected and technology can overcome the concerns of the masses.