Cryptocurrency has been the new trend for a few years now. As we watch it rise and decline and expand into new markets, it got us thinking – has cryptocurrency changed how we view money?
If you’re not quite sure what this is, cryptocurrency (commonly known as “crypto”) is a digital form of currency. It’s like normal money and can be used to buy and sell, but it uses a technology called “cryptography” to make secure transactions online. Many also use crypto to trade for profit.
But unlike normal money, cryptocurrency is unregulated, and many companies have even created their own forms of it. Each form of crypto from a company can be traded for something that the company provides. You purchase them with normal money, and these are frequently called “tokens.”
Many think that crypto is the currency of the future, which is a big factor for it taking off so quickly. But, again, it’s worth wondering. Has cryptocurrency impacted how people view money?
Some financial advisors recommend buying things exclusively with cash. Their reasoning behind it is that, when you pay cash for something, it’s more tangible. When you swipe a card, you’re not physically exchanging money, so it’s less of an attachment. The same principle applies to scanning your phone with Apple Pay or ordering something online. It makes sense.
Crypto is basically the next step to a world where paper money isn’t necessary. If you never physically hold your money, but you just see a number in your online account, do you really have any attachment to it? Is there any mental connection to that number in your account? If all of your money is digital, does the drive to spend smarter or save money still exist?
We have to admit, it’s an interesting concept. It is something to consider as we watch cryptocurrency grow. To learn more about what’s next, check out our article on the future of cryptocurrency here.