Life cannot exist without money. We need money for everything in life. It is an essential element of life. If we didn’t need money, there was no need for investment. Anyways, demands for money are increasing every day, as we need more comforts and luxuries in life. Families grow in size, and proportionately new demands come up. Money–making is more than a necessity. The basic needs of life can be fulfilled from little earning, but people think of more comforts and luxurious life when they are able to fulfil their basic needs. When one can live a luxurious life, his next move become to build wealth. So, money-making is a lifetime dream.
Sovereignty of money
Money’s sovereignty rules everywhere. Every home, every government needs money, but money is losing its power. It is a critical issue because a time will come when money’s purchasing power will become almost negligible. Imagine, you have wealth but without monetary value! You will think about why you have built wealth. The regime of money is not unpredictable because people and governments know what will happen in the future. Inflations and recessions are unstoppable, and they are regularly attacking money. The purchasing power of fiat money is going down. The current money is aged now and has too much strength. People and the governments are concerned about the condition of fiat money that will die in the future if the trend continues like this.
Possibility of creating new money
Can we think of replacing current money with new money? Obviously, the possibility of new money is not denied. In the real world, fiat currencies are not the only money that existed for a long time. The money needs have been supported by other forms of money – commodity money, fiduciary money, and commercial bank money.
No currency is involved in commodity money that is the simplest and oldest form of money, but it performed all functions of money, such as the medium of exchange, store of value, and unit of account. It has no risk of devaluation and loss, as goods and services are directly exchanged for other products and services.
Fiduciary money is trusted money, where the issuer promises to exchange it back for fiat money or commodity when requested by the bearer. Fiduciary money is not a government declared legal tender, but fiduciary money cheques, banknotes, or drafts are as good as regular fiat money.
Commercial bank money worth more than the value of the actual currency held by commercial banks.
If you compare other less prevalent forms of money with the most prevalent fiat money, the former is better from the perspective of intrinsic value. The intrinsic value of fiat money is significantly lower than its face value, and for this reason, fiat currencies are losing their charm. Fiat currencies are like older women who don’t look pretty.
We again come to the point of creating new money. If other forms of money can exist, why can’t new money be added? Indeed, new money has already arrived to which we refer to as “digital money.” This new money is a cryptocurrency that is not a legal tender, and not printed in currency bills. Still, its usefulness is far more than other forms.
A new king of the money world
Since ancient times, the money reign is perpetual, but different money forms take charge from time to time. Fiat money has ruled this world for quite a long time. It has become too old, and it is a time to think of its successor. Cryptocurrency is the most competent to take over the charge. Bitcoin, the king of the cryptocurrency world, has enough power to rule the real-world money regime. Cryptocurrency, the modern world’s mod money, has been viewed as the future of all other monies created so far. Though crypto has not so far become commonplace, yet investors have started linking their future with this money. Cryptocurrency trading has become a common practice nowadays, as facilities are available on many crypto trading platforms. You can find many of them or do trading through Login page .
Wrap up
