Topic: So much for cashless society: cash is gaining in popularity - page 3. (Read 536 times)
Paper cryptocurrency sounds more of a joke to me than a serious suggestion or proposal. A paperless society has been advocated since decades ago. This is both an advocacy that calls for the protection of trees or nature in general and the advancement of technology. Paper money is inefficient, inconvenient, and not dependable at all. It could be lost, misplaced, torn, destroyed by water, and so many other reasons for it to be less than efficient compared to its digital version.
Seems not feasible though. Why do we need to revert back to paper cash, and making digital currency back to paper seems only a waste of natural resources. We're moving forward, digital resources such as internet connection and access to technology is continuing to spread even in third world countries. We're nearing the digital age and the need for paper isn't necessary, like what some cities in Germany are adopting.
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The question of what the best store of value is, has gained in popularity lately.
It appears the solution some have adopted is: paper money is the best store of value!
The trend of holding paper money has traditionally been more common in nations like japan but appears to be spreading to the united states. It won't be long before the media publishes news stories about unfortunates storing paper bills under their mattresses only for their cash to be devoured by termites, ants or assorted insects. To "nudge" consumers away from that horrible, nasty, evil paper currency, towards a digital cash future.
All of which highlights a dire need for: paper cryptocurrency.
The question of what the best store of value is, has gained in popularity lately.
It appears the solution some have adopted is: paper money is the best store of value!
The trend of holding paper money has traditionally been more common in nations like japan but appears to be spreading to the united states. It won't be long before the media publishes news stories about unfortunates storing paper bills under their mattresses only for their cash to be devoured by termites, ants or assorted insects. To "nudge" consumers away from that horrible, nasty, evil paper currency, towards a digital cash future.
All of which highlights a dire need for: paper cryptocurrency.
That article you cited is a single drop of Hydrogen (yeah you!) in an ocean of financial news where cashlesss crypto is king. Based on what I see around me, more and more of my family members, friends, and colleagues are using credit cards or crypto, if not primarily because of convenience but because of rebates and reward points. It just gets. too enticing to know that using cashless is rewarding.
Going cashless has value, just like bitcoin and crypto.
All of which highlights a dire need for: paper cryptocurrency.
I do think that not everyone has the capacity to accept and send money in digital means. For example, people who don't have smartphones cannot do that, especially in third world countries. There are of course solutions to that but if I was in the shoes of those people, I wouldn't want to learn a new mean of transacting or cashless means to my daily life. It would become harder for the people who don't have anything to be part of this revolutionizing era that we have now. Almost everything has become digital and no one is going to help the poor with it. There could be solutions but it's not permanent.- Giving smartphones to them
- But then, they would have to work on the mobile data usage.
- Paper cryptocurrency (like you suggested)
- How will they be able to verify it on the blockchain?
- How would people know it's legitimate?
I'm talking about the poor because they are the ones who are going to be hit on this, big time and I do not think most of the wealthy people would be willing to help them. This could be one of the reasons too why people are starting to increase their desire for the love of Cash. It has always been the means and keeping it as a stored value.
- There is no mobile data requirement
- Tangible
I'm not against with regards to the cashless society. I want it to be always the means, especially being part of the Bitcointalk Family, it's just that sometimes, we have to think about the ones who are less fortunate than us instead of always ourselves. Trusting the government is one thing, being able to be fair and transparent with all the transactions is another.
Makes sense to be honest, I don't want to pull the same bullshit that a lot of journalists did with Bitcoin where it was labeled as a fuel for money laundering and illegal activities.
But, it's actually pretty true with cash, a lot of 500 dollar bills in Europe for example are very popular to hold money in and also commit illegal activities, and most of those bills are in physical cold storage (people keeping 50k EUROs under their bed)
But, it's actually pretty true with cash, a lot of 500 dollar bills in Europe for example are very popular to hold money in and also commit illegal activities, and most of those bills are in physical cold storage (people keeping 50k EUROs under their bed)
Cash as store value may pertain to banks as it can cash out thru ATM easily but will not preserve it's real value as there are charges while it is in the bank. While it is good to have savings in bank, it is just hard to remain it there when we know in fact that there are many ways to grow our money better than banks like investing it in crypto that is not affected too much by inflation and big charges compare in bank. There is only a need for now for more store or businesses to accept crypto that I can fully eliminate using cash since I'm using mobile banking or crypto transactions nowadays. Once businesses accepts crypto It will lessen the volume of people using cash.
Store of value means being able to retain is value in the years to come. Simple terms, its value would remain the same. I doubt fiat could hold up to that, with inflation still an existing factor that is. Plus, with how countries continue to keep printing out fiat currency, I seriously doubt it would actually retain its purchasing power. On rhe contrary, I'd believe it to be actually losing it instead.
In terms of everyday use, yes, fiat may seem great and useful, but it doesn't seem to be considering the global economic factors that the world is in now. After all, saving up in a single household is just that. Saving up. On the other hand, if you lookat how banks handle fiat, you'd be able to see clearly that they aren't doing anything to save the global economy. With each print of fiat, they're just increasing the global debt, accumulating to the point where we aren't able to pay it off anymore.
In terms of everyday use, yes, fiat may seem great and useful, but it doesn't seem to be considering the global economic factors that the world is in now. After all, saving up in a single household is just that. Saving up. On the other hand, if you lookat how banks handle fiat, you'd be able to see clearly that they aren't doing anything to save the global economy. With each print of fiat, they're just increasing the global debt, accumulating to the point where we aren't able to pay it off anymore.
I was standing the queue to pay for my shopping the other day and I was looking at the cash register person and thinking about how long they sit there and work and take peoples filthy money all the time. I thought about how often they have to touch the money that has been who knows where and they do this all day long. It is a disgusting thought. Money is so dirty. I was thinking how nice it would be to simply just scan a QR code and be on your way. I have used money. I hate that you must keep is in a wallet or purse and I hate that you can lose it. I hate that it is dirty and I really really hate coins and small change that just weights down my wallet after a day of shopping. Physical money seems not very technologically advanced to me and when I look around I see all this high tech stuff so why is our money not high tech too? I mean how are we still using physical money.
Oh and fiat is a terrible way to keep value. I would rather buy gold and hold that. Fiat will go down in buying power because of inflation.
Oh and fiat is a terrible way to keep value. I would rather buy gold and hold that. Fiat will go down in buying power because of inflation.
saving money is okay, but if it is too much we will definitely be confused where to save except at the bank, for crypto will be used in the future or not it is a matter of debate because if used in the future paper money will be shifted its position then extinct, it's also not good, because is it possible that even small children who are not familiar with technology if you want to buy candy must use crypto, in my opinion paper money will not be removed but will only be added to the list of money exchange tools
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If people need less cash to pay for stuff, why do they want to hold so much of it? The answer, it seems, is that they’re turning to currency as a store of value.
Cash as a store of value? I suppose if you were to hold it for less than a year it wouldn't lose *that* much value, but inflation will still work its black magic and eat away at that cash's purchasing power. That doesn't sound like a great store of value to me.
A lot of people keep some 100 dollar bill rolls in their house for emergencies, and the P2P market is constantly growing and cash is amazing for real life trades on it.
Paper crypto-currencies sound like an interesting concept. Something that could be held like cash in person, but could also be redeemed for value and wouldn't be traceable and be safe to use - sounds very high tech and the perfect tool for illegal stuff though...
The question of what the best store of value is, has gained in popularity lately.
It appears the solution some have adopted is: paper money is the best store of value!
The trend of holding paper money has traditionally been more common in nations like japan but appears to be spreading to the united states. It won't be long before the media publishes news stories about unfortunates storing paper bills under their mattresses only for their cash to be devoured by termites, ants or assorted insects. To "nudge" consumers away from that horrible, nasty, evil paper currency, towards a digital cash future.
It appears the solution some have adopted is: paper money is the best store of value!
The trend of holding paper money has traditionally been more common in nations like japan but appears to be spreading to the united states. It won't be long before the media publishes news stories about unfortunates storing paper bills under their mattresses only for their cash to be devoured by termites, ants or assorted insects. To "nudge" consumers away from that horrible, nasty, evil paper currency, towards a digital cash future.
It makes sense, given that interest rates are so damn low. When saving dollars in the bank yields almost nothing, you might as well keep it in cash. Especially when everyone loves accepting cash (no fees or fraud). I get cash discounts at gas stations, my auto mechanic, even some restaurants/bars. And my bartenders love me.
All of which highlights a dire need for: paper cryptocurrency.
Does it?
Saving Cash is not bad for daily use just that they are wrong too much save cash and do not play it in business or right effort. Good storage is storing fiat that is not at risk but still, inflation Can happen, hence they see cryptocurrency can be a tremendous payment in the future. Now as China uses blockchain in its government where bitcoin prices are now rising. So much enthusiasm of the country to develop the blockchain and will be followed other countries in the future.
I wholeheartedly agree that the world may not be ready for a cryptocurrency as a store of value. Cash is way easier to handle for the common Joe's of society. The only way that I can see people running to cryptocurrency is for a major institution to introduce it to the public. I Don't like the fact that Libra is centralized but it may be the only hope for the entire world to be educated about crypto. I've always wonder how would I explain the concept of Block-chain and Bitcoin to my grandparents or the younger generation without putting them to sleep.
Many people won't touch cryptocurrency period unless it has an institutional stamp of approval on it. The people that I do see adopting are the impoverished who have nothing to lose and tech enthusiasts. Libra could be that answer that get peoples feet in the water. Whether they decide to take the plunge is up to them, but at least their feet will be wet.
Many people won't touch cryptocurrency period unless it has an institutional stamp of approval on it. The people that I do see adopting are the impoverished who have nothing to lose and tech enthusiasts. Libra could be that answer that get peoples feet in the water. Whether they decide to take the plunge is up to them, but at least their feet will be wet.
As the article you have linked states, paper currency is predominantly favored by the elderly. They don't trust banks, but it's not for the reason we don't trust banks. We know that banks are centralized, self serving, privacy invading leeches who print money out of nothing to line their own pockets whilst ripping off their clients. The elderly generally don't trust banks because so much of banking is done online now. They don't believe the numbers on the screen because they don't understand technology or computers, and so they opt for the medium they have used for the majority of their lives - physical cash. The younger generation are the opposite. I couldn't tell you the last time I bought something for actual cash. I have a few bills in my wallet just in case, but I've carried the same bills around for months. All my fiat spending is done via card. Cash may see the odd surge here and there because of the banking crisis, but by and large, it is on the way out.
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But people have to believe that electronic money will be safe from mismanagement, man-made disasters, hackers and even confiscation.
I found this line interesting. You can never be sure that your fiat stored in banks is going to be safe from either mismanagement or confiscation. Once you hand your money over to a bank, you have no control how they invest or lend it out to others, and they also maintain the power to freeze your assets if they don't like something you are doing. Only being your own bank with bitcoin can provide this safety. 
All of which highlights a dire need for: paper cryptocurrency.
I don't know if you meant that to be sarcastic, but I find it laughable. 
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Modern finance requires a lot of trust, and its digital future will demand still more. If, for example, electronic payments are to replace cash, people must be willing to believe that the bits of data traveling among phones, cards, terminals and blockchains actually represent something of value.
So, will people believe? Judging from their growing predilection for physical currency, maybe not.
At first glance, cash would appear to be on its way out.
Sweden has almost eliminated its use for payments. In America, home of the almighty dollar, almost a third of the population gets through a typical week without using a single banknote.
Businesses are experimenting with going cashless, hoping to speed up transactions, combat theft and create a safer environment for their employees.
Actually, though, physical currency is experiencing a resurgence.
People in many of the world’s most advanced nations — including the United States, the euro area and Japan — are holding more of it than ever.
In the U.S., for example, currency in circulation stood at an estimated $1.76 trillion as of late September, according to the Federal Reserve. That’s about 8.2% of gross domestic product, up from just 5.6% before the 2008 financial crisis and close to the highest level in at least 36 years.
If people need less cash to pay for stuff, why do they want to hold so much of it? The answer, it seems, is that they’re turning to currency as a store of value.
Consider the kind of cash they favor: Increasingly, it’s large denominations such as $100 bills, which are the most convenient for stashing away big sums. Benjamin Franklin’s share of total U.S. currency in circulation reached 80% in 2018, up from 73% a decade earlier, Federal Reserve data show.
Since 2017, the $100 bill has surpassed the $1 note as the most widely circulated U.S. currency.
The trend in the developed world contrasts sharply with emerging economies such as China, Russia and India, where currency in circulation has been declining as a percent of GDP, according to the Bank for International Settlements.
Why are people in rich nations hoarding cash? No doubt, it has a lot to do with central banks’ efforts to keep interest rates low.
When safe investments such as deposits or government bonds yield little or less than nothing, people aren’t missing out by holding paper money. This illustrates why central banks can’t push rates too far below zero: Instead of spending the money or watching their savings shrink while sitting in the bank, people will just withdraw their cash and put it in the mattress.
That said, the surge in demand for currency has been too large for interest rates alone to explain. This presents something of a mystery.
Criminals, of course, are avid users of cash, but there’s no particular reason to think that their demand for it would have increased so much in the last decade. On the contrary, the advent of cryptocurrencies has provided them with a viable alternative.
One recent study, by a pair of economists in Asia, found a link to aging populations. It seems that older folks — perhaps because they’re less inclined to trust numbers on a screen — have a greater affinity for cash.
So when they make up a larger share of the population, overall currency holdings also go up. This might also help explain the contrast with emerging economies, where population aging is less of an issue (and where interest rates haven’t been as low as in the developed world).
The most troubling possibility is that people are losing faith in financial institutions more broadly.
The surge in cash began immediately after one of the worst financial crises ever — and has been concentrated in the affected countries.
Granted, one wouldn’t expect the effect to keep growing over time. But perhaps persistent scandals — such as those involving fake accounts, manipulative fees and the theft of personal data — have compounded the problem.
Trust might also have something to do with the opposite trend in emerging economies. To be willing to hoard cash, people must have a certain amount of confidence in a government’s ability to manage its legal tender.
In developing countries, this confidence is often lacking. Consider India’s 2016 “demonetization,” in which the government pulled large-denomination banknotes out of circulation and replaced them with new bills.
The move didn’t disrupt the shadow economy as intended, but it did undermine the currency: Cash holdings have yet to recover to their pre-reform level.
Cash accumulation can go only so far as a sign of trust in government. After all, governments in the developed world would typically like to see more electronic payments.
Getting rid of cash can have a lot of benefits: It can help deter crime, reduce tax evasion and give central banks more power to stimulate the economy. But people have to believe that electronic money will be safe from mismanagement, man-made disasters, hackers and even confiscation.
So far, neither the denizens nor the overseers of the financial system have done a great job of earning that trust.
https://www.latimes.com/business/story/2019-10-27/cash-is-more-popular-than-ever
So, will people believe? Judging from their growing predilection for physical currency, maybe not.
At first glance, cash would appear to be on its way out.
Sweden has almost eliminated its use for payments. In America, home of the almighty dollar, almost a third of the population gets through a typical week without using a single banknote.
Businesses are experimenting with going cashless, hoping to speed up transactions, combat theft and create a safer environment for their employees.
Actually, though, physical currency is experiencing a resurgence.
People in many of the world’s most advanced nations — including the United States, the euro area and Japan — are holding more of it than ever.
In the U.S., for example, currency in circulation stood at an estimated $1.76 trillion as of late September, according to the Federal Reserve. That’s about 8.2% of gross domestic product, up from just 5.6% before the 2008 financial crisis and close to the highest level in at least 36 years.
If people need less cash to pay for stuff, why do they want to hold so much of it? The answer, it seems, is that they’re turning to currency as a store of value.
Consider the kind of cash they favor: Increasingly, it’s large denominations such as $100 bills, which are the most convenient for stashing away big sums. Benjamin Franklin’s share of total U.S. currency in circulation reached 80% in 2018, up from 73% a decade earlier, Federal Reserve data show.
Since 2017, the $100 bill has surpassed the $1 note as the most widely circulated U.S. currency.
The trend in the developed world contrasts sharply with emerging economies such as China, Russia and India, where currency in circulation has been declining as a percent of GDP, according to the Bank for International Settlements.
Why are people in rich nations hoarding cash? No doubt, it has a lot to do with central banks’ efforts to keep interest rates low.
When safe investments such as deposits or government bonds yield little or less than nothing, people aren’t missing out by holding paper money. This illustrates why central banks can’t push rates too far below zero: Instead of spending the money or watching their savings shrink while sitting in the bank, people will just withdraw their cash and put it in the mattress.
That said, the surge in demand for currency has been too large for interest rates alone to explain. This presents something of a mystery.
Criminals, of course, are avid users of cash, but there’s no particular reason to think that their demand for it would have increased so much in the last decade. On the contrary, the advent of cryptocurrencies has provided them with a viable alternative.
One recent study, by a pair of economists in Asia, found a link to aging populations. It seems that older folks — perhaps because they’re less inclined to trust numbers on a screen — have a greater affinity for cash.
So when they make up a larger share of the population, overall currency holdings also go up. This might also help explain the contrast with emerging economies, where population aging is less of an issue (and where interest rates haven’t been as low as in the developed world).
The most troubling possibility is that people are losing faith in financial institutions more broadly.
The surge in cash began immediately after one of the worst financial crises ever — and has been concentrated in the affected countries.
Granted, one wouldn’t expect the effect to keep growing over time. But perhaps persistent scandals — such as those involving fake accounts, manipulative fees and the theft of personal data — have compounded the problem.
Trust might also have something to do with the opposite trend in emerging economies. To be willing to hoard cash, people must have a certain amount of confidence in a government’s ability to manage its legal tender.
In developing countries, this confidence is often lacking. Consider India’s 2016 “demonetization,” in which the government pulled large-denomination banknotes out of circulation and replaced them with new bills.
The move didn’t disrupt the shadow economy as intended, but it did undermine the currency: Cash holdings have yet to recover to their pre-reform level.
Cash accumulation can go only so far as a sign of trust in government. After all, governments in the developed world would typically like to see more electronic payments.
Getting rid of cash can have a lot of benefits: It can help deter crime, reduce tax evasion and give central banks more power to stimulate the economy. But people have to believe that electronic money will be safe from mismanagement, man-made disasters, hackers and even confiscation.
So far, neither the denizens nor the overseers of the financial system have done a great job of earning that trust.
https://www.latimes.com/business/story/2019-10-27/cash-is-more-popular-than-ever
....
The question of what the best store of value is, has gained in popularity lately.
It appears the solution some have adopted is: paper money is the best store of value!
The trend of holding paper money has traditionally been more common in nations like japan but appears to be spreading to the united states. It won't be long before the media publishes news stories about unfortunates storing paper bills under their mattresses only for their cash to be devoured by termites, ants or assorted insects. To "nudge" consumers away from that horrible, nasty, evil paper currency, towards a digital cash future.
All of which highlights a dire need for: paper cryptocurrency.
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