The calls for a cashless society are strengthening. After all, who uses cash these days anyways? I just swipe my credit card, get the points, and pay it off later – no cash needed, right? That, and digital currencies like Bitcoin are coming out and making payment systems even more efficient and arguably better than the traditional swipe methods.
Cold hard cash still does hold value, just not a value proposition the authorities might share with you. For example, cash is anonymous and helps you make untraceable transactions. This is an advantage in case you ever get into a bind and need instant liquidity to get out.
Cash is also fast and not dependent on a payment network. If your credit card goes down and you have enough cash to cover the bill, man do you feel good. Physical dollars are solid backup plan.
And maybe most of all, cash serves as the preferred payment medium of the black market. Without cash, drugs and other illicit goods would have an exceedingly hard time getting to consumers. Cash is the great lubricant of these dark markets.
While Bitcoin may eventually be the happy medium here as it’s pseudo anonymous but also able to be recorded on the blockchain, we are still a ways out from Bitcoin taking over as the king of cash transactions. Nonetheless, the paradigm shift for cash is here….what in the end will place our paper currency units?