So, I was chilling with a friend yesterday and we had this friendly yet drawn out debate. He was of the mindset that crypto currency is too new a infrastructure to work in today's world. Almost as if societies on a global scale, are not technically prepared enough to start transacting in this way yet. I kind of replied that traditional "fiat" money, can also be seen as having a digital use-case, such as debit and credit cards. In that when we perform any transaction in this manner, numbers are either deducted or added to your "virtual" bank account, in the trust that it will be honoured by our elected third party. That being mainly our designated banks. He disagreed with this statement pretty sternly though, saying the two are completely different and not related in any way. However, what do you think?
When we view an online bank account, including our crypto wallets, we make the assumption that the valued contents are verifiable and therefore carry a certain amount of validity. In the case of bank accounts, figures corresponding to how much you have in there, are actually just a representational snapshot of your fiat portfolio in digital form. You don't physically "see" the money coming into or out of your account. You assume the central body responsible for this is taking care of your requirements on their side. That's the age-old system of "centralized finance" we've all been a part of for as long as we can all remember.
But I feel, in essence, we've now been almost "trained" to transact in this way. Last month, card transactions superseded paper ones for the first time in our history. From my point of view, the citizens of this world are already primed to accept digital currency as a store of value as well as transact with. After all, it's what so many of us have already been used to for so long. The "paper and coin" option, over time, should erode and be seen as nothing more than a primitive form of finance, making way for new technologies of replicate the perception of ones wealth. Crypto currency seems like the perfect logical next step.
But, as with my good friend, some people are still so resist to the prospect of "digital wallets" or "invisible money" that they refuse to acknowledge the concept alone. However, a concept they are already so familiar with. I just don't get it. What is so different in terms of procedure, when sending funds from a crypto wallet as opposed to a traditional bank account? In both scenarios, it's simply a number subtracted from the previous one beforehand. The fundamental method employed is essentially exactly the same. However, one provides a "centralized" third party solution whereas the other offers an independent user-orientated "decentralized" one. But again, the end result is the same, as well as the process. I simply don't see the two as being that different, to be honest. Or have I been involved in the world of crypto so long that the lines have blurred too much?
What do you guys think? Is this technological leap too much for the average person in today's world to get to grips with? I certainly don't think so, but would still be interested to get your thoughts.
@ezzy