As blockchain currency rises to greater prominence many people are asking the question, “Is cash really dying?”
In 2016 only 24% of Americans used cash for their transactions. With the expansion of plastic money and the recent rises in valuation for Bitcoin there’s no better time to investigate the benefits of diversifying your currency to ensure financial security. After all, you never know when market volatility will render your currency without value, as is the case with cash in India right now.
Currencies come and go, but will some disappear before others? Cash used to be king, but in a volatile market it could quickly become worthless. Cryptocurrency doesn’t have a lot of exposure at the moment, but big moves in the valuation of Bitcoin are changing that perception. Gold and other precious metals have a relatively stable market price and generally weather any major financial changes. While all these options are viable, is it really wise to have all your money in one place?
The threat of crypto crime is small, but on the rise with a reported 6.6% of all Bitcoins being stolen. In 2015 the U.S. government’s own task force was charged with Bitcoin money laundering and wire fraud totalling in over $800k in stolen funds. With the real threat of digital theft, having paper and gold currency is a great way to mitigate risk.
Some countries are phasing out plastic money. India has hopes to do away with plastic altogether and replace it with thumb prints and payment apps because millennials are saying no to credit cards more and more. Other countries like Denmark are eliminating big bills in favor of a state sponsored banking app.
With all these changes, diversifying your currency is the best way to be sure you will always have access to your holdings, whatever form becomes preferred in the marketplace. Check out this infographic which showcases the current trends regarding cash usage:
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