Introduction Of Digital Money Will Cash Run Out
Digital Money Will Cash Run Out. The digital money of many ways in our bank account using a debit card or with the credit cards through transfers or consignments and lots of things that e-commerce started just being a means of digital payment and only with a credit card nowadays because We already have the possibility of paying in cash through different and places however definitely plastic money is the mechanism for excellence and this is mainly a trend of younger people that those who use more cash are the older people who they even withdraw their cash pension in full and put it in one in a little box in the house with the risks that this implies.
That each transaction had its traceability
The cash has many benefits in principle criminal organizations are those that mainly have these monies in large quantities to make movements undetected and therefore governments have wanted to carry out a drastic reduction they would be happy eliminating cash as such forever if they could ensure that each transaction had its traceability and that detailed monitoring of all our movements including the government Australian already has a plan as such for now it is not known if it will be carried out or not to make illegal all movements over 10 thousand dollars Jan efe but then when we analyze.
Which Possible alternatives to a cashless future are the main mechanisms are means that we have are credit cards and debit for example if you lose your card you can simply call request a new one and there is no problem but if you lose money in cash whoever finds it stays with it and enjoys it and uses it and ready even if you miss one credit card does not mean it is risk-free when we compare the risks of cash with the risks of cards we could say that the tie the cards are safer even with all the things that occur today at the level of cloning scams and others in fact if you I am interested in creating a video on this topic of risks.
You tell me in the comments the fact is that there is always much more fluidity and ease of handling plastic money and well, this in itself is by design on the other hand cash is also not fraud-free is estimates that approximately 0.1 percent of all cash dollars in circulation in the world are counterfeit dollars and this it may seem very little until we realize total money in circulation is more than a trillion dollars credit cards have a major downside to debit and cash and is that one does not pay with money one pays with debt, in other words, there is no direct transfer of value between buyer and seller but a promise between buyer and bank or financial institution to pay or return the money that.
The bank lends or delivers directly to the buyer
The bank lends or delivers directly to the buyer only within an agreed term or with interest or several installments then I wouldn’t say good but then debit cards are like a solution the fact of not having to think that it is a debt that has interests that it has on costs and many other things And really, it is that debit cards do use and have the funds from my bank account and therefore reject any possible transaction that exceeds is flat that there are still accounts with overdraft and debt capacity at very high rates but therefore independently of this there is no promise and if there is a direct transfer of value but the problem of cards of any kind are the costs and commissions per transaction in other words.
The processing that a merchant pays as always is on the supplier’s side this cost not as a consumer almost never sees it or thinks about it consciously and we are normally talking between 1 and 3% plus a fixed amount such as say 30 cents or the equivalent in any currency local and this could be ready express that a little money yes but imagine 3% of a product that is worth two dollars would be six cents ok but the 30 pennies as such which are a flat fee actually makes the percentage of cost of the product only in card processing commission is 18 per percent not counting profits not counting operating costs the costs that the one that you have to have the raw material of the product and many other things this does.
That those credit and debit cards are not an accepted medium normally by many merchants in low-value transactions already and businesses that those are the only products that sell low-cost products. the cost, therefore, I could never adapt to half of these unless they make the products super expensive and we have to assume that cost in addition to all this on credit cards for, For example, they offer bonus miles points benefits for just using the benefits that clearly would not have as leaving only that little percentage, for example, if we talk about 23 percent commission, how is that? some cards offer 5 percent evolution in certain categories because this comes out and for people who do not know that they are clear of those who pay interest on their purchases in other words the people.
Who gets into debt and do not have the full money to pay
Who gets into debt and do not have the full money to pay their purchases and therefore put the purchases they make with their credit cards end up financing profits flights miles la gasoline, supermarket redemptions and many other things those who use it at a fee in other words credit cards are a means of passing money and value from the poor to the rich one You have to decide at this point which side you want to be on the side of those who they pay interest on the Avilés in points and miles regardless of where it comes from because the question is that the price of the product is the same regardless of whether I pay with cash and do not receive any benefit nor do I receive anything or if.
I pay with a credit card and I earn all those benefits then because it has really so is the legality in practically all developed countries in Colombia for example Printing cannot change according to the means of payment and then simply if they tell you that they are going to give you a discount for paying in cash because clearly, you should take it however it is not the way it works nor much less in practically the whole world, therefore, on the subject of shops, are forced to increase the prices of products for everyone to that they can simply bear the cost of processing the cards and The ones who end up winning are the franchises.
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The companies and the banks not so much in users or businesses and we are talking about just a few companies which are American visa Mastercard express Daines club or discover and some others few of other places that do not apply to Latin America and that’s it an oligopoly in which you are simply few, these few providers are they are left with all those profits they have control and can even deny them services to anyone in essence if there were no alternatives such as cash leaving you bankrupt immediately possibly behind solutions such as per example in china the widget app became the default application in the default mechanism to pay anything is so common that they find QR codes everywhere.
A device to receive the cards of the installation costs
But it is so incredible adapting the mass forgiveness adoption of this app that even beggars receive alms per widget apart from the fact that shops do not have to pay the rent of a dataphone a device to receive the cards of the installation costs or anything that is what each Whoever downloads the application on their cell phone scans the code and with that pays and ready there they receive their salary they already use mount the funds that want to have a good amount of things and this app is even considered to be an app for all kinds of things in addition to chat like WhatsApp and then it has an application and it has utilization is even at the business level and it is a private provider the that.
When we are going to analyze the volume in money of transactions annually they process 10 times more money than debit and credit cards In the US which is an incredible thing, of course, China has more inhabitants but when the conversion is made and the analysis adjusted to the population We realize that it is even more than double the number of money transactions as such with this application and we are talking about an application that they created just about 10 years ago and the incredible thing about widget is that they do not charge any kind of tariff, therefore, makes any small business can sell without having to think about this with this commission and what the percentage will be net of all your profits.
Because it’s one thing to sell a cup of coffee and think ready in this I was 36 cents another thing is to sell a thousand glasses of coffee and how much money the commissions end up accumulating but all The question is how to make a widget to earn money and the answer is to the government love that wizard shares all the information of the movements and the transactions of its users and therefore the government was supporting much this application so that there is no privacy the government knows everything and many people in China are just willing that for all.
Visa and MasterCard we are giving
The conveniences provided by the system as they will deliver your private information of all movements without any problem as such to the government but regardless of whether people are willing to accept This makes it clear that with Wii chat or with visa and MasterCard we are giving you a lot of power to providers a power that if cash disappeared it is too much good much more than we should be willing to accepting a cashless society would have a lot more to do negative than positive it is okay that the government wants to control a little on the subject of illegal transactions but you don’t think there would be other ways.
If there is less motivation there will be the means either through gold script or currency will always find a way to trade anonymously then what are the benefits and convenience as such for us but another thing to think about is that beyond banknotes and coins, money itself, let’s talk, for example, about dollars or let’s talk about Colombian pesos or soles Mexican pesos or any another currency is nothing more than a representation as an ideal that we We have about the value when we see that a bill has numbers printed on it. we get to the idea that this bill is worth that number because, in reality, it is that we are holding is a piece of cotton and linen a paper whatever but it has no value is nothing more than.
What we as such we assigned first were the certificates as such the tickets initials were certificates of deposits backed by gold then backed by of course backed by nothing and then the last of the money are cash with a card with debt with whatever ends up being an illusion and So here the question is towards the future that awaits us in addition to all the inflation wiped out much of the value of many currencies has ended many of them in their entirety the dollar is worth 95 percent less than it was worth in 1911 the federal reserve of us was founded as such and therefore practically all divisions are on their way to devaluation to become weaker and weaker for now.
What is going to happen and the cash is not going to disappear
There is a lot of uncertainty really about what is going to happen and the cash is not going to disappear in the short or the medium term I do not consider that in ten years there will no longer be cash what happens is that we will have it for certain things there just in case, but in reality, digital money is thus practically taking over the world and really when we talk about cryptocurrencies still It is in doubt whether this will become the default mechanism for transactions especially when there is so much volatility so much variability in price that is not as stable as we perceive from example a dollar or whatever and well many people are still not willing to assume the change that this implies outside of what I tell you that happens in china with the widget.
Until beggars receive their alms there but with cryptocurrencies hardly find how to buy them and how have them legally at least in countries like Colombia but governments they would definitely be happy that there is no cash because they would have an analytics traceability paradise of each of the movements they would know how much you really earn ‘how much you can collect the tax money would be practically automated and practically you would not have to hire even an accountant because they themselves would tell you how much you have to pay since basically then they know everything but regardless of the above.