When the first cryptocurrency appeared in 2009, not many people paid attention to it. For several years, this cryptocurrency accounted for almost all the market capitalization of the crypto industry. Bitcoin was seen as a good idea, maybe a bit idealistic, but nothing more than that. Then, other cryptocurrencies started to emerge. Ethereum, Ripple, and more coins quickly started to catch the attention of many investors.
Today, it is undeniable that cryptocurrencies are here to stay. They are a reality. Several cryptocurrencies are even accepted as payment methods by some shops and online retailers. Several people have become millionaires by investing in cryptocurrencies. Anyone can purchase digital coins on a crypto exchange online easily. In light of all these developments, several analysts foresee a promising future for cryptocurrencies.
Some even wonder, are cryptocurrencies the future of money? Will cryptocurrencies replace cash entirely? It is an interesting question. Some institutions have publicized their opinions on the matter. For instance, Deutsche Bank recognizes the fragility of the current money system in its “Imagine 2030” report. Its analysts foresee tremendous growth in the name of crypto users. The report puts it at 200 million users by 2030. The report describes that cryptocurrencies will inevitably replace cash, as people yearn for anonymous payment methods.
When Can It Happen?
For several years, the most common operations with crypto were conversions of fiat money to Bitcoin and the other way around. Nowadays, there are hundreds of cryptocurrencies available. It is not uncommon to see exchanges that advertise TRX to SafeMoon conversion and many other pairs. There are technically thousands of coin pairs. Out of so many cryptocurrencies, it is difficult to predict which ones will be able to replace cash in the future.
In any case, the replacement is not going to happen shortly. The aforementioned report sees cryptocurrencies as complementary to cash at least until 2030. After that, replacements may occur. The way people are adopting cryptocurrencies is somehow analogous to the adoption of the Internet. The breakthrough in the adoption of the Internet came when policymakers allowed it to be used for commercial activity.
Hence, if cryptocurrencies are going to replace cash, policymakers must legitimize cryptocurrencies first. The approach of governments and regulators to the use of cryptocurrencies will determine their future. It may happen sooner than expected. That’s why the report by the Deutsche Bank includes a section that suggests the end of fiat money. It is shocking, considering that the report comes from a major bank.
Cryptocurrencies Will Replace Plastic Cards
We have already seen that, at least in developed countries, the use of cash has been almost phased out. Plastic cards emerged as a more convenient alternative. But as the use of cryptocurrencies increases, both credit and debit cards are becoming obsolete. Cryptocurrencies may end up replacing plastic cards. Online payment services like PayPal have already replaced plastic cards.
Many enthusiasts believe that cryptocurrencies have the real potential to replace fiat money. Cryptocurrencies will shatter many previous paradigms. People will be their own banks. It is just a matter of time.