October 26, 2021


Cryptocurrency and Technology

Cash VS Crypto

Hello all. In this article, I will be discussing Cash also known as Fiat vs Cryptocurrencies in a realistic view from where we are today. Let’s look at them and see what the advantages and disadvantages of both are as well as banking each.


Cash is king for a reason. It is accepted everywhere and in its purest form virtually untraceable. Cash works and we use it every day, the problems tend to arise when it comes to storing our cash. Typically we use a bank although some of us try to be our own bank and use safes or a mattress.

Issues with being your own Bank

If you want to be your own bank with cash you are stuck hiding your cash literally wherever you can and this becomes an issue. Your cash can be lost, stolen or destroyed.

The other issue with being your own bank is there are some things you need digital currency or digital payments for in this day and age. Its very hard to send cash to your internet service provider via the mail and its a huge risk as there is no real way to track the cash. You could buy a money order or prepaid check but now you are using a banking service so it is almost impossible to be your own bank with cash.

Just use Banks

You could just use a bank with cash to store it and then get a debit card for online purchases. Well, this has its problems also. The bank can process your funds whenever they want at any speed they want. This can make it look as though your account has more money than you actually do and unless you monitor your account like a hawk could cause overdraft fees. Yup, the banks charge you a fee for allowing you to use your card when there is no money on it… that makes 0 sense but here we are.

Never Runs Out

My factoid about cash before we move on to digital currency is that cash never runs out. Your dollar today is worth less than it was yesterday because the government prints more and more every day. Well, isn’t money backed by something? Yup, your faith in it and that’s it. Not gold, not silver but your faith in the dollar itself.

Digital Currency (Crypto)

The digital currency was created as a way for people to send value to other people over the internet. The first iteration of this that is widely used is Bitcoin. This technology has been empowering people to be their own bank but has some legitimate issues also so let’s take a look.

Be Your Own Bank

You can be your own bank in a much safer manner than with cash. While storing cash is easy it comes with a lot of risks. With digital currencies, you have your own digital wallet. While your wallet could be hacked, unlike a bank, you can only hack one wallet at a time so there is no risk of an entire entity getting hacked and millions of people losing money (like the Home Depot incident). For this reason, the risk of your wallet being hacked is very low and as long as you store your private key (the key that backs your wallet up) in a safe location you can always regain access to your coins in the event of a disaster.

But Prices are Volatile

Yes, Bitcoin is highly volatile and very risky and you should not own more than you can afford to lose. While many of us in the space agree that it is not going anywhere almost none of us agree on where the price is going to level off at. There is a solution to this though if you want to use digital currencies and be your own bank. Stable Coins.

Stable coins are designed to always be worth 1 usd thus removing any risk of loss from market depreciation.

I Can’t Pay Bills with Crypto

Right now, paying bills with crypto and digital currency is a little difficult but many 3rd parties are creating ways to use crypto for everyday payments. The problem with this is now you are using 3rd parties to handle your money which negates the whole point of being your own bank but it still has advantages. It’s fast and immutable. Your payment can be tracked and thus can not be lost and payment happens in seconds typically.

Won’t it Run Out?

Bitcoin and most cryptos have a cap which is what creates the supply and demand aspect of the market. This is what makes most cryptos immutable. No new coins can be printed beyond the cap. Your 1 BTC will always be worth 1 BTC and in a global market that is a huge deal.


Digital currencies are going to free the everyday person from the chains that the banking system holds us in the long run. Today, however, we are not quite there for the everyday person but it is coming fast. I think it’s important for the average Joe to understand what being your own bank can bring and the importance of not letting a 3rd party decide how and where you can use your money. We already see Crypto highly used in countries where the economy has destabilized and I believe it is a sign of where the world is heading. Digital currency is the way of the future and while it may never replace Fiat it will be adopted alongside it in the near future. Continue to do your own research as Crypto has many forms and use cases beyond a simple investment standpoint.