People used to say the same thing about gold standard. And it's true, you can still store some of your wealth in precious metals, and you can even get gold coins that are legal tender. But when was the last time you've used gold to pay for something? Or received gold as change at a store? Once you accept fiat money, abandonment of precious metals as tender is inevitable. And once you accept electronic payments, the end of cash is written on the wall. We just happen to be at the infancy of electronic payment. Like back when paper money was in its early days, each bill had to be backed by a gold equivalent. Today we have a concept of leverage on credit, because this is the only way we understand electronic payments. But it's only a matter of time before leverage also become a fiat. And once there is no longer a reason for banks to hold piles of cash, its use in every day transactions will also get phased out.
Cash will never be completely abandoned. While the most money today is being transferred electronically, because we are talking company to company payments, a large portion of consumer transactions remain in cash.
I disagree. The difference between gold standard and paper money is not actually something that matters to consumers. In that regard, paper money is just more convenient, but beyond that they are basically the same.
Electronic money brings whole new advantages and disadvantages to the equation. It's almost completely different. Electronic money provides a detail trace of transactions for each user, data that can be used for targeting ads, positioning stores and whatnot, all by the usage of a surveillance society owned by private industry. You think you should fear the government? No no, it's corporations you should fear. Well, fear the most.
Electronic money is also reliant on certain things being operational. If you have cash, you can always pay with cash. Even if the power is out, the phone lines dead and you can't get a signal on your phone.
Not really a doomsday scenario, because it does happen from time to time. And the more reliant we get on electronic money and electronic things in general, the worse it's gonna feel whenever the power is out.
Moreover, like with everything that has computers in them, current implementation is pretty shoddy. And as such is ripe for targeting in ways to steal your
money. Now cards have a wireless chip on them that with an app on your smartphone can be scanned from another pocket and a transaction can occur. Sure it's not much per transaction, but if you get enough walking down a crowded street, it can add up.
Indeed, because electronic money is so much easier and convenient to steal, you don't even have to go outside, you can just steal from people's online bank accounts, than regular cash; handling cash these days is also a lot safer. Primarily because they've made cash transports pretty safe.
Just as I hope - perhaps in my naïveté - that one day people will realise what horrible an instrument Facebook truly is (that is, providing vital social infrastructure to a private corporation, where we have no legal say in administrative changes and giving a lot of private information to private companies), I do hope that people begin to realise to be more cautious about electronic money, and demand more security.
Now I am not against electronic money. But it has some inherent disadvantages that I do not believe are possible to solve. The solution is for cash and electronic money to co-exist. A new invention doesn't have to replace an old one. We didn't stop going to the theatre after they invented films.