Digital Currencies And NFTs...Are They The Future?

April 4, 2022

It appears that everything today is moving full-speed-ahead without giving anyone enough time to analyze what's actually happening! Nonetheless, we have to take the time to get-it-together. There are many important changes taking place in the world today....changes that cannot be ignored. I would advise you to do your research to discover exactly what those changes are and how they affect your life.

One of the most important transformations taking place at-the-moment has to do with fiat currencies. I have written two previous posts touching on the subject of how freelancers can benefit from using multiple currencies titled:

As A Freelancer Do You Have Access To The World's Most Stable Currencies?

As A Freelancer Are You Getting The Most From Your Currency When Billing Clients?

These two blog posts are focused on how freelancers can benefit from using multiple world currencies.

But what happens when currencies change not only in value, but how they are distributed and sanctioned?

Besides the value of fiat-paper currencies diminishing, there's talk about presenting a digital currency. For example, the United States is in talks about creating a "digital dollar." According to the article from ZeroHedge:

Digital Tyranny: Beware Of The Government's Push For A Digital Currency

"our governments greed for money, power, and control, has grown out of control."

"Indeed, this shift to a digital currency is a global trend. More than 100 other countries are considering introducing their own digital currencies. As such, digital currency provides the government and its corporate partners with a mode of commerce that can easily be monitored, tracked, tabulated, mined for data, hacked, hijacked and confiscated when convenient. This push for a digital currency dovetails with the government’s war on cash, which it has been subtly waging for some time now."

Many financial experts and others are weary of a digital currency and there are many reasons why. However, the "main" reason is privacy and control. For example, whenever you are paid your "payment" will be purely digital which means that you will actually have no control over it.

With cash, you can pay 20 here and a 20 there....however, you deem fit to spend "your money." With digital currencies where, how, and with who you spend your money down to the last coin will be tracked. Another concern is accesses of our personal data, how it is stored, and how it is used. The article from ZH also emphasizes:

"At a minimum, before any kind of digital currency is adopted, we need stricter laws on data privacy and an Electronic Bill of Rights that protects “we the people” from predatory surveillance and data-mining business practices by the government and its corporate partners."

NFTs

The reason why I mention NFTs and cryptocurrencies is because world governments will either adapt the cryptocurrency-blockchain system or create one of their own.

Most of us are aware of cryptocurrencies to a certain degree and you can certainly find plenty of information about them online. Nonetheless, there is not so much talk about NFTs that may also play an important role in the transition to digital currencies. Investopedia.com elaborates on NFTs and how they differ from cryptocurrencies.

Below are snippets from the Investopedia article:

Non-Fungible Token (NFT) Definition

What Is a Non-Fungible Token (NFT)?

"Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can serve as a medium for commercial transactions."

Understanding NFTs

"Like physical money, cryptocurrencies are fungible, meaning that they can be traded or exchanged, one for another. For example, one bitcoin is always equal in value to another bitcoin. Similarly, a single unit of ether is always equal to another unit. This fungibility characteristic makes cryptocurrencies suitable as a secure medium of transaction in the digital economy.5

NFTs shift the crypto paradigm by making each token unique and irreplaceable, thereby making it impossible for one non-fungible token to be equal to another. They are digital representations of assets and have been likened to digital passports because each token contains a unique, non-transferable identity to distinguish it from other tokens. They are also extensible, meaning you can combine one NFT with another to “breed” a third, unique NFT."

The article also highlights that currently NFTs are centered around collectibles, such as digital artwork, sports cards, and rarities.

CONCLUSION

IMHO....the affairs surrounding currencies is changing quickly. This change will affect how we make money...if you want to call it money. Much of our livelihood will be based on how much we want to "fit in" with the digital paradigm.

Do I believe that they will be successful with completely eliminating cash? I hope not. In fact, I don't think they will have such an easy time convincing the world's populations of the advantages of digital money over cash. Except perhaps Generation Zs who simply "go along with trends because they think they're cool and progressive."

I myself prefer cash.

One of the main reasons for my preference is that cash is private and tangible. As the saying goes "if you can't hold it...you don't own it."

What do you think? Leave a comment below.