• chrissly1

The Future of Money: Bitcoin vs. traditional currency

Updated: Apr 7

The future of money is a hot topic right now, with many people predicting that traditional currency will be replaced by Bitcoin and other cryptocurrencies. While these two systems seem diametrically opposed to each other, it's possible that they will end up co-existing. In that case, the existing finance system will need to adapt to support the demand for cryptocurrencies.

One of the main advantages of Bitcoin is that it's not controlled by governments or banks. This gives people more control over their money and allows them to bypass restrictive financial systems. However, one disadvantage of Bitcoin is that it's incredibly volatile, meaning the value can fluctuate dramatically from day to day. This makes it difficult to use as a reliable currency.

Traditional currency has been around for centuries and is far more stable than Bitcoin. It's also backed by insurance, which means that if something happens to your bank, you will be compensated. However, traditional currency is controlled by governments and banks, which can lead to financial instability.

So, what 's the future of money? It's hard to say for sure, but it seems likely that both Bitcoin and traditional currency will continue to exist side-by-side. How the existing finance system will cope with this remains to be seen.

So what about insurance?

Companies have been around for centuries offering insurance to cover damage and accidents. An old insurance company in London was formed in 1696, along with two others, Hand in Hand Fire & Life Insurance Society in response to the Great Fire of London. Not only was this one of the ways the Great Fire shaped London, but it also teaches you something insurance. Insurance is a story of people coming together in times of need, it's also reactive to the world and the changes in it.

What does that tell you about crypto and the future of insurance?

Bitcoin remains volatile, but customers are still dashing for it. There will also be digital and physical places where people regularly visit to purchase, exchange and sell cryptocurrency. Institutions will always look for insurance to support new initiatives. So, insurance will always be around in the form of reinsurance, to help spread risk and prevent huge losses that could potentially bankrupt an insurance company. In this way, insurance will continue to exist in the world of crypto and beyond.

If you're interested in learning more about Bitcoin (and insurance), please visit our website. Thank you for reading!

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