Howwill be the future of finance is shaped as a result of the globalization ofdigital money?Digital money: Digital money is kindof money which is available only in the digital form, not in physical state. Itexhibits properties which are similar to physical money that allows fundstransfer transactions. It is ”digital base money” like bitcoins,cryptocurrencies. This type of money is also used to buy physical products orservices.
Digital money balance recorded electronically on card or some sort ofmicro-chips. Digital money is also known as e-money, digital cash, digitalcurrency or cyber currency. Digital money mainly refers to electronic paymentsystems or channels. Digital money is basically from paper money to binarycodes of one (1) and zero (0).Future of Globalization ofDigital Money: Today, every digitaltransaction and every international transaction involves a use of form oranother of virtual currency or credit. Digital money is the latest financialweapon of the global financial elites in the present intense currency war andwill be used by financial elites to compete against gold.Phasesof globalization of digital money:-Thereare many phases of globalization of digital money. In the first phase, thecontrollers of bitcoin have decided to focus on the markets of the developedworld.
In this phase, the controller would by-pass the global bankinginstitutions and will focus on the existing alternative payment systems thatwidely used in internet market such as PayPal, money gram etc. This is becausebitcoin or cryptocurrency can only survive and grow in the internet environmentas it is a technology based currency. Bitcoin or cryptocurrency cannot be usedin the same way as a paper money is being used. It is not cash money. It isdigital money. This makes sense in our daily lives that more and more transactionsare being facilitated through the internet.In thesecond phase, only bitcoin would be accepted as for payments of goods andservices.
No bitcoin, no sales for goods and services. The controllers wouldnot need any laws to compel as in the present case with paper money.In thefinal phase, it is my belief that banks will be transformed their present formand structure to bitcoin exchanges or clearing house cell.
Cryptocurrenciessuch as bitcoin were accessible only to the persons who are experts in usingprogramming software to perform actions like cryptocurrency mining. Later,those persons built the cryptocurrency exchanges from which exchange thebitcoin they were mining for cash.Theproblems with these exchanges occur are: Firstly, they are notprogrammed for high capacity, so in order to get accepted you need to be onlong waiting list which can take months.
That means you will never buy at theprice you see today.Secondly,they lack costumer support, most of the times there is no authorized person forthe technical issues. The last and the most important they lack securityfeatures and regulations so if they suddenly vanish with your money then thereis nothing you can do about it.Most ofthe people think that bitcoin or cryptocurrency is a bubble which is inflatingby time and after some time it is going to burst because it is decentralized. Bitcoincannot be mine whole life because bitcoin has a limit which is 21 millionbitcoins, when 21st million bitcoin is mined then they remain only21 million bitcoin in world. Then we have to use only those 21 millionbitcoins.
It has no proof oftransactions with an account of the person. Some persons maintain the balancesheet of transaction which takes place in the world which is called mining. Butthey cannot maintain the name of the person from where these cryptocurrenciesis transferred. Cryptocurrency or bitcoin nowadays used by the persons whosmuggle drugs, weapons because no one has proof of receipt. Let’s take anexample and suppose if cryptocurrency will be globalized then every person canpurchase things in bitcoins or other cryptocurrencies.
Employees get theirsalaries in bitcoins and passengers bought their tickets in bitcoins.The mainadvantage of cryptocurrency is that it is decentralized which means there is nobank or government who controls it. This is one of the reasons why investor areagree to invest in it without paying any tax. There is another advantage ofbitcoin or cryptocurrency there is mathematical limitation to the numbers ofbitcoins that can be produced which no hard money so the rule and regulation ofeconomy work perfectly. There is limited supply of something which means demandsincrease and then prices increases.Bitcoincould represent a device for self management and community economies, differentway to use internet to help the challenge growing netocracy if Googles,Facebooks, Twitters, Amazons etc.
By making investment in cryptocurrency peopleget rich as opposed to free instrument of exchange and trade. Cryptocurrencywill make people rich who invest in it, as does day trading and house flippingwhere many more will lose then win. I suppose to original sin of bitcoin was toallow its purchase in dollars and not for example, in services provided by oneanother on the base of labor time and material. But the cryptocurrencystructure is based on limited quantity that allows it to inflation.Blockchainwas developed to enabling the technology behind cryptocurrencies like bitcoin,ripple, litecoin etc. It is capable of carrying information but also anythingthat has value.
The decentralized cryptocurrency empowers individuals andcommunities, bring opportunities and enable bonding across borders withoutrequiring users to sacrifice privacy. Individual can own their own personalinformation, identities, do transactions and create exchange. If the Blockchainbecomes widely used all over the world then people will have greatopportunities to enter into the global economy. In this way farmers can connectto global supply chain. We can make a true sharing economy where creators ofvalue share in the wealth. In this regard the promise of Blockchain technologywill be heartening. It includes low amount of transaction fee, large financialaccess to people and organizations.
Currencies like bitcoin shows fundamentalchanging takes place in capitalism nowadays, nature of trust is changing. TheBlockchain is technology behind the bitcoin.Mostlypeople think that cryptocurrency or bitcoin is fraud or scam but most of peoplealso think that it is a good a business for investment. It depends uponthinking of the person how he is going to think about it. The first and theprimary objective of any cryptocurrency or bitcoin is transferring of moneyfrom one place to another in no time. In this way, you can also purchase goodsor services in regards of bitcoin.
A person who is having bitcoin valet canpurchase anything from it and can also give payments in bitcoin.Theglobalization of digital money is not accepted world widely because they thinkthat any coin cannot replace the value of gold or diamonds. Its main reason isthe fluctuation in the price of bitcoin. Suppose on Monday 1 bitcoin is equalto 10,000$ and on Wednesday it will be 8,000$ or 14,000$. I don’t think it willbe more successful in future because some people have trust issues aboutdigital money like cryptocurrency.