Although people do not see this development yet, fiat money will probably not survive the next generation and will be replaced by some form of digital currency.
Let’s see if and how this scenario is possible.
More and more people believe in digital currencies
Recently, more and more people are inclined to claim that in the future, gold and fiat will be replaced by digital currencies. If this were to happen, it would be a whole new era of finance in the financial sector.
Many attribute the possible failure of the fiat currency to the dynamic situation on the bond market. With such dynamics, it is necessary to have a quality and fast currency that people can rely on, instead of slow and outdated fiat or cash.
Greater support for digital currencies
People also tend to support digital currencies like stablecoins more. The reason is the high volatility of Bitcoin. People need to rely on currency. The currency must therefore be stable, clearly defined, user-friendly and easy to understand.
However, it is possible that the price of BTC could be more stable if it were designated as a reserve currency. Thus, Bitcoin could replace gold. It should also be added that Bitcoin is gaining more and more supporters, who favour it over gold.
Free and secure banking
People want secure, fast and free banking. No wonder. Why should people pay for handling their own money? If Bitcoin replaces gold as a reserve currency, there could be a revolution in the banking system and investments.
Last generation to remember cash
It is now evident that the Millenials could not only be the last generation to remember life without mobile phones, but also the last one to remember cash and fiat money.
People are aware of the need for a different financial system and that it is not good to rely on central banks. Digital currencies give us a choice and a different view of money. As time passes by, we will soon no longer be able to rely on the classic fiat currencies, but we will need a fast and reilable system, offered by digital currencies.