Will Digital Currencies Replace Real Money?
Digital currencies began to receive a lot of attention after the advent of bitcoin in 2009. Bitcoin, which no one predicted would progress in the 2010s, set a record by seeing a band of 20 thousand dollars in 2020 and has grown so much that no physical currency can grow in 10 years.
The biggest factor in the fact that digital currencies have received so much attention in 10 years is that they are not affiliated with an institution or organization, they cannot be controlled by any government. Even if at first it was only used for Money trading on the darknet, today it is used by many people and institutions to quickly send money to an address on the other side of the world.
The fact that bitcoin is open-source allowed everyone to see the logic of working in the background. This transparency provided by bitcoin soon attracted interest from other programmers, which led to the emergence of cryptocurrencies based on the bitcoin algorithm, which we call Altcoin.
Although altcoins are similar to bitcoin, today it is possible to see cryptocurrencies working with very different algorithms.
The difference between digital currencies and physical currencies depends on the interest in that cryptocurrency, not the assets of a country. So in 2009, you can buy 1250 Bitcoins for just $ 1, while today 1 bitcoin is sold for about 20 thousand dollars. Although the advantages of digital currencies are too great to ignore, we can say that the world’s governments cannot control, track and replace almost completely anonymous cryptocurrency transfers with physical currencies for a long time. In addition, cryptocurrencies that can be stolen when they are not protected are not yet developed enough to be used by world States and replace physical currencies.
But this does not prevent the emergence of more reliable and traceable cryptocurrencies in the future. It is possible that in the future governments will be able to officially switch to a digital currency that they can follow.
It is no secret that in the future if digital currencies are tracked and controlled entirely by the government, physical currencies will be changed due to their cost.