Everything has its time and place. Everything begins as a seed, grows, withers, and then dies. This is how life works, and the same is true for money and how you obtain it. Money is changing tremendously in our minds, both in terms of how it is earned and how much it is worth.
You withdraw a dime from your wallet. You can pick up the coin and know it’s worth ten cents just by holding it in your hand. In a few years, you’ll probably be clutching a small plastic heart or star, or you might not even have a wallet and only have access to virtual money that you don’t comprehend.
When was the last time you considered the past, present, and future of money? The introduction of electronic banking and digital currencies may herald a transition away from cash.
It’s thrilling to investigate the potential of cryptocurrencies like Bitcoin. It’s a hive of opportunity as well as dispute, with over 8,000 digital currencies on the market.
When we consider the future of money, it may provide us with a fresh perspective on our own financial circumstances. Understanding the evolution of money may help us make more educated and foresighted financial decisions. Will our attitude toward money change?
1. Credit Cards and Mobile Payment Apps
Credit card usage has surged in recent years. VISA and MasterCard dominate more than 80% of the global credit card market, resulting in a classic oligopoly situation (feel free to disagree).
On the other hand, mobile payment solutions are rapidly evolving into a new and more comprehensive system. Mobile phones, apps, Bluetooth solutions, and other new technology are making it possible to make payments and move money in new ways.
Younger generations have quickly acclimated to new payment systems, and many have never felt the sense of holding genuine money in their hands. In some ways, money is becoming “imaginary,” creating fertile ground for deception, particularly among Generation Z.
It is a huge market. In this market, money is still king, but it’s money spent on mobile phones. People’s loyalty is likely to wane as a result of their lack of financial resources.
2. Cryptocurrency
In just a few years, cryptocurrency has grown from a digital novelty to a trillion-dollar technology with the potential to undermine the global financial system. Bitcoin and dozens of other cryptocurrencies are gaining in popularity as investments, and they’re being used to buy everything from software to real estate to illegal drugs.
Cryptocurrencies are a democratising force, according to proponents, moving money creation and control away from central banks and Wall Street.
Critics, on the other hand, argue that the new technology is unregulated, providing criminal gangs, terrorist organisations, and rogue countries enormous power. Cryptocurrency mining, which uses a lot of electricity, is said to be harmful to the environment.
Financial regulators are frantically trying to find a solution. Cryptocurrencies are governed differently around the world, with some governments encouraging their usage while others outlawing or regulating them.
Central banks throughout the world, including the US Federal Reserve, are considering developing their own digital currency to combat the cryptocurrency boom.
As the globe moves toward more convenient financial exchange systems, blockchain-based digital currency may be a viable choice for the future of money.
Major banks, accounting firms, software companies, and the government have all invested millions of dollars in bitcoin and blockchain research and development. “Will cryptocurrencies help in the transition to a cashless society, or will these lofty goals prove too difficult to realise, leading in increased inequality?”
3. Digital Banking
Digitized banking refers to the practise of conducting financial services online in order to reduce risk, boost efficiency, and better serve customers. In-person banking is steadily declining, particularly in the aftermath of the COVID-19 outbreak.
It’s only logical that the future of money would proceed in this direction, with commercial bank branches increasingly becoming contactless and automated.
Experts predict that more banks will make their service offerings fully digital, which is not surprising. Customers save time and money by moving a portion of their banking transactions entirely online, while banks save money on office space by doing so.
4. Money Management Begins to Be More Purposeful
Fintech innovations are predicted to make our money work harder for us and our values during the next decade. Because of the advent of impact investing and belief buying, a younger generation of investors is using money for a more purpose-driven purpose, and they want their banks to reflect that.
While the bank makes money off of your money, it’s possible that your money isn’t working for you yet, and may even be working against you.
Passionate investors are fighting issues like climate change, corruption, and social unfairness without relying on large banks that contradict their principles. What does this mean for the future of money?
Finally, banks invest our hard-earned money in whichever way they see fit, which is usually profitable. This means a bank could be investing your money in causes you disagree with. These days, people are becoming more aware of the discrepancy between their values and their spending/investing behaviours.
Conclusion
While security and cost-effectiveness are important, we must not forget that the future of money will be digital and data-driven. People like the ease with which developing forms of currency allow them to manage their finances, whether it’s food budgeting or setting up automatic savings contributions.
Knowing how to create, analyse, and interact with the smart contracts that make this possible will become a skill that a growing number of people will require in order to participate in the economy. Money will become less abstract – just a number in a box – and much more related to our digital labour and self-expression as a result of this.