Will Covid kill Cash?

[Lesley Resnick]

Will covid kill cash?

Digital payments have been growing by leaps and bounds but will this health crisis be the final straw?

I have seen a lot of local businesses request that you pay digitally or in some cases no longer accept cash.  Paying with cash is a far more intimate exchange than using a card.  You hand the cashier money and they make change from a draw that is filled with cash from pervious customers.  The clerk makes change and hands it to you.  It is counted, put back in the customer's wallet and they leave with the money and any germs that may be on the money.  

Some of the new apps and cards that you can just tap against the card machine reduce or eliminate the extra contact.

Collectively the federal government (Treasury, Federal REserve, DOJ) have been trying to limit and/or eliminate it for years.  Will this be the event that is needed to end cash as we know it? 

[Amelia G]

Originally posted by @Jeffery Callis:

@Lesley Resnick

As long as we have a federal reserve are with holdings of 7 trillion. Dolla dolla bills are not goin anywhere.

They will continue to print money into oblivion.

 FWIW those holdings, almost by definition, aren't able to be all dollars, so I'm not sure I see how those holdings justify creating money way in excess of those holdings. You can see the breakdown at https://www.federalreserve.gov...

[Amelia G]

Originally posted by @Alvin Sylvain:

Originally posted by @Renee Harris:
I see Bitcoin ATMs in the hood now. I was shocked when I saw the first one at a gas station in the hood. Won't be long before they pop up in the liquor stores in the hood.

I have seen those also. I'd be curious to know if anybody has ever actually tried using one.

 Every Bitcoin ATM I've used or tried to use had a terrible exchange rate. They generally set fees low for perception but check preev.com on your phone and the exchange rate tells another story. Still generally a better deal than payday check cashing places but not suitable for investors.

[Jeffery Callis]

@Amelia G

Incorrect, The holdings are stocks, bonds, etc.

They exchange them for cash whether it’s a loss or gain.

Still cash 💰

7 trillion in holdings is 7 trillion dollars fam.

[Justin Thorpe]

@Lesley Resnick

Digital payments will continue to take share and that process has accelerated due to Covid. That said a big part of the population, primarily lower income use cash in a big way. That’s not going to change.

[Aigo Pyles]

No. it won't kill cash. 

[Renee Harris]

Originally posted by @Alvin Sylvain:

Originally posted by @Renee Harris:
I see Bitcoin ATMs in the hood now. I was shocked when I saw the first one at a gas station in the hood. Won't be long before they pop up in the liquor stores in the hood.

I have seen those also. I'd be curious to know if anybody has ever actually tried using one.

 If I knew how to use them, I would.

[Karen Laruane]

There is a big chance for it, but its fine, the world is moving into new era 

[Lake Lutes]

It's inevitable that cash will no longer be present in our day to day lives, it just depends on when. I agree with many others on that fact people will always want a way to conduct transactions without consistent and constant monitoring, however, there are ways to do this without using cash (bitcoin as an example).

I am a cash on hand kind of guy, so I am not looking forward to the change like many others, but thinking that it isn't in the process of already happening is not a factual way of thinking.

[Eric Hart]

It depends on who you talk to. If you're at a higher level in society, you're probably barely dealing with cash. For many people though they don't even have bank accounts and will be receiving/paying cash for everything the rest of their lives...

The penny has actually cost more than 1 cent to produce in America for year. We've been losing millions by continuing to produce them, but there's a lot of lobbying groups that make sure that production isn't stopping soon.

But if you're talking the value of the US dollar - then yes COVID isn't doing it any favors. Keep reading your RDPD and get your money into investments that will appreciate!

[James Lane]

Originally posted by @Joe Splitrock:

Originally posted by @James Lane:

Originally posted by @Joe Splitrock:

Originally posted by @James Lane:

Trade my sheep for your calf>> give you $5 in cash for you calf>> use my debit card to buy your calf>>BITCOIN for your calf.

It's evolution. Google CBDC's. Central bank digital currencies. Now we have governments in talks with crypto companies. Once that happens, bitcoins marketcap will be in the trillions.

I would diversify my portfolio to include cryppto to hedge against the USD. Purchasing power of the dollar is at an all time low. I owuldn't want to be keeping much cash right now

 And bitcoin is at an all time high right now. I wouldn't want to keeping much in crypto right now. In fact if I owned crypto I would be selling right now. The USD is far more stable and secure over time. I prefer none of the above. I prefer physical assets like rental property. If the USD was replaced by crypto tomorrow, I could just start collecting that instead.

I said diversify by adding some crypto to my portfolio. That doesn't mean 100% of my portfolio. Bitcoin is at an all time high for a reason. By your logic we should all short the dow jones because it's also close to an all time high. The USD is not the powerhouse it once was. The fed can only pump so many $ and go into so much debt before it becomes a problem. Every other great world power has fallen. Romans, Greeks, Chinese dynasty etc. I am not saying the USA is going to fall down the drain tomorrow. I am saying people should be open minded when it comes to crypto and new technology. The same people who want to hold onto cash are the same people who complained about the internet. People who own clothing stores are now failing because of amazon and online shopping. if you are not adapting to the world around you, you will be left behind. 

 You may be a little dramatic here, comparing people with cash to people who complained about the internet. The internet and online shopping solves problems for people. Crypto is largely used (as currency) by people who don't want their activities tracked. That means people involved in illegal activity or wanting to avoid taxes. Crypto currency doesn't solve problems for the average person. Even if crypto currency gains traction, it is hard to say if a specific type such as bitcoin will even exist in the end. Any new technology has casualties along the way and often the first model fails. Napster was set to revolutionize music, only to be replaced by music streaming services. The lesson learned from Napster and other peer-to-peer services is that you cut out the middle man, but the middle man doesn't like that. Monetary systems like consistency. Once you add speculation into the mix, you have a fluctuating value, which doesn't work for the trade of goods and services. As much as you may not like the feds policies, they do aim to stabilize and provide a constant in currency and inflation. 

Betting on non government issued crypto is betting against the government. Maybe a collapse or revolution is coming, but I am not sure even crypto is safe from something that catastrophic. My cousin claims when that happens that bullets and food will be the new currency. I agree you can make some money in crypto, but I just don't see it as more stable than the USD at this point. Ultimately I like real estate because there is a physical asset underlying the investment. That physical asset fills one core human need, which is shelter. What are you left with if crypto currency collapses? What human need does it fill? 

No doubt people have made a ton in crypto currency. I just see it as speculative and risky. My opinion and you are entitled to yours. 

Glad i'm involved with bitcoin and have a portion of my portfolio locked up in it. All the smart institutional money is now flowing into the crypto market. 2021 will see the market cap of crypto increase hugely. Even banks are now adding it to their portfolio's. All time high again today. You have a clear misunderstanding of what bitcoin actually is. But that's ok too. To each their own.