The changes brought by digital currency technology has completely disrupted the payment market. The method of payment preferred by the new generations (especially millennials) when they shop in physical outlets is the bank card. And today, it is becoming increasingly rare to see cash payments in retail.
Bitcoin to replace cash and restore the balance
Bitcoin is a cryptocurrency that is not controlled by governments and banks. Its technology allows a total decentralization of money transfer from a private individual to a private individual. Bitcoin could, therefore, replace cash and become the “digital cash.”
Indeed, there are some similarities between Bitcoin and cash:
- Bitcoin is difficult to track, and transactions can be anonymous through decentralized exchanges. The same applies to money, where payments are made manually.
- Bitcoin very often escapes taxation because earnings are not reported and control bodies are not at the level. Cash also often escapes taxation and allows traders not to report all their income.
- Bitcoin is exchanged from one person to another without going through a third party (Bank). Cash is also transferred from one person to another, and payments are made by hand.
Small businesses are short of cash
A few years ago, retailers used not to report all the money they received. It allowed them to have a part that was exempt from taxation and left them a little bit of fat. This cash was reinjected into the economy and supported other businesses that in turn spent on local businesses.
This scenario no longer exists today because most of the payments are digital and are therefore declared. Local commerce has also suffered from competition from pure digital players that have disrupted entire markets (Amazon example). In short, small businesses lack cash.
Tomorrow the cash will disappear
We are moving towards a “zero cash” society. In some countries, such as Sweden, less than 15% of payments are made in cash. And politicians believe that a “zero cash” society would reduce tax evasion.
Bitcoin will continue to grow
If the theory demonstrated in this article tends to be realized and Bitcoin replaces cash, then cash could be used by billions of people around the world. And its value is also likely to increase sharply in the coming years.
Imagine a world where Bitcoin payments will be accepted everywhere; you can pay for your holidays in Bitcoin, pay for the work in your house in Bitcoin, etc. And these transactions will not necessarily be declared!
Yes, but then the state will have less control? Isn’t that dangerous?
What is dangerous is the limitless control and the reduction of freedoms. Bitcoin and species help to restore the balance. I don’t think Bitcoin will replace traditional currencies, but it will be used as a complement to give power back to the little people!