The coins and notes we are used to today actually hold no value but are used as they are recognised by governments and ordinary citizens. They hold value because we’ve decided they do. However, before our current system, people traded items such as stones for money.
How do you get paid? How do you pay your rent? It’s likely you’ve never physically seen this money that enters and leaves your account each month.
We are now experiencing the rise of virtual currency and although Bitcoin is the one most people have heard of, it’s certainly not the only one. This money doesn’t require banks to be moved around the world and will instead be managed solely by the owner of the money as it doesn’t rely on the banking system and is thus decentralised.
This money has the ability to be transferred at a much faster rate and is more secure than the money we use right now. It’s also private as your identity is kept anonymous although transactions made are visible.
No matter what currency looks like in the future, a financial revolution is inevitable.
If you have a keen interest in the changing nature of currencies, take a look at the Accounting and Finance BSc (Hons) offered by GISMA.