Cryptocurrency is poised to bring a cashless world into reality. The industry, worth $500 billion is becoming mainstream and offers an alternative to traditional banking.
This new technology allows users to send money almost instantly from any mobile device. It works by having a large number of network computers verifying transactions and recording them on a public database.
Bitcoin is the figurehead of the industry which now has over 1,000 alternative coins (altcoins). Cryptocurrencies were originally used to buy drugs on the dark web but are now used in anything from tipping other Reddit users to buying cars in Japan.
Cryptocurrencies have attracted a lot of media attention in the recent months and have scorned criticism from investors such as Warren Buffet and Nouriel Roubini, who predicted the 2008 global financial crisis.
While there are still hurdles to overcome in this new technology, it is something many people are have already invested in. There is a large possibility that cryptocurrencies will spearhead a transition into a cashless society.
Gone are the days when people kept cheques or bundles of cash in their homes.
The majority of the developed world have moved to a period where everything is paid with by debit or credit cards. This has become even more rapid with the introduction of contactless in 2007.
Contactless payment systems have developed rapidly in the last ten years. When it was first introduced, only a handful of companies accepted it and there was a £10 limit. Now, a large number of card payment systems accept contactless and the limit has been raised to £30.
Further to this, smartphones have brought a massive change to this technology where users can pay using contactless payment from their phones. One in every five card payments uses contactless technology.
We are rapidly moving into a new wave where cash will become a thing of the past. Cryptocurrencies are likely to be the next stage in this evolution and this will be aided by the upcoming regulations across that world that are needed for real-world adoption.
Article written by Amar Mehta
None of this is financial advice. I take no responsibility for any decisions you may make.
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