Until the beginning of 2017, Bitcoin seemed like the only cryptocurrency that mattered to anyone or any industry. Within a few weeks, Ethereum, Ripple, and others span out to take a chunk of the market capitalization. Some industry analysts believe that it’s only a matter time until the cryptocurrency industry takes over fiat money entirely making the world as cashless as the word can get.
Crypto Vs Fiat
Benefits of a Cryptocurrency Take Over
If cryptocurrencies are to surpass fiat currencies eventually, it will support the concept of universal basic income. Since it is decentralized, it will not be easy to manipulate by the government. Also, cryptocurrencies will eliminate the need for intermediaries from daily transactions. However, with all these benefits, there are still some drawbacks of a cryptocurrency take over.
Drawbacks of a Cryptocurrency Takeover
If cryptocurrencies become more popular than fiat currencies, fiat money will lose value permanently, and if cryptocurrencies take over entirely, there will be a need for a new infrastructure to ease the world into the new era. This transition will be flooded with difficulties in transition as fiat money will become incompatible quickly and lead to loss of assets. The established financial institutions will suffer a lot.
The Government Will Suffer the Most
Apart from the impact of a cryptocurrency take over on the grassroots, the government may not be so happy with the development. This is because, currently, the government is in control of fiat currencies which gives them the power of regulation. Cryptocurrencies, however, will be difficult to control by the government since they are decentralized. Tokens will be generated by mining operations and not determined by the government.
The bottom line is that no one can predict the speculative cryptocurrency market in the long run. While a take over might seem unlikely now, a lot of things can change within a few months or years. Just like with every other change, it would bring advantages and disadvantages to the world’s economy.