A recent post in the NYTimes DealB%k section talks about some interesting predictions in the way we do transactions and the structure of finance in the future:
dealbook.nytimes.com/2014/04/01/a-revolution-in-money/
Do you all think these predictions are warranted? How do you think these things will change in the coming decades?
I think the fact that billions of dollars are already being exchanged through bitcoins suggest these projections are warranted. I am really intrigued by the idea bitcoin and its ramifications. If you don't know much about it, I would suggest taking a few minutes to read some articles about it because its pretty interesting. The biggest issues that are present and that will continue to cause headaches are regulation and online hacking. Hundreds of millions of dollars worth of bitcoins have been stolen or affected by online hackers since 2011. I think it is very probable that paper money will be a foreign concept in the future timeline of the article.
ReplyDeleteI agree with Mark, I think paper money will eventually be a thing of the past. Paper money, a type of fiat money, took the place of commodity money (gold, jewels, etc...) because it was a more efficient way to trade as it cut down on many transactions costs. In a similar fashion, as technology progresses and virtual money comes to have lower transactions costs than paper money, it will take over as the primary currency. To me, the question is more "how soon" than "if so." Right now the transactions costs are very high as it is very difficult to monitor virtual activity, but those costs will continue to decrease as technology becomes more and more advanced.
ReplyDeleteThe article does point out that paper money has been a very stable and trusted form of currency, but I believe that as society as a whole becomes more and more technologically inclined the trust issues in virtual currency will fade away.
My main source of payment is electronic, meaning a card swipe. I only pay in physical money as a secondary option if the place of business doesn't offer the ability to pay electronically. The 2000's will be exciting.
ReplyDeleteI would also agree with the above comments. We are already starting to see paper money fade away. Another interesting new technology is the card readers that can be attached to your phone. I know I have a friend who uses those to collect IOU's from his housemates and rugby team. This is another way in which non-paper currencies can be superior in their immediate availability.
ReplyDeletePersonally, I prefer to carry cash instead of relay on my card. I admit there are benefits to doing everything online but, I feel as if there will be a technological takeover
ReplyDeletein the way everything is done day to day.