A significant benefit of digital currency is its ability to serve as a nearly instant medium of exchange. Purchases may be made globally in a near instantaneous manner with reduced fees when compared to existing methods of exchange. The corresponding challenge associated with this benefit is the lack of widespread adoption.
Despite the benefits of digital currency and increased awareness, it still has a way to go in terms of adoption. There are a wide range of digital currency alternatives and the average consumer has likely only heard of the potential risks involved with these digital currencies. This perceived lack of trust is something that digital currency must overcome if it is to overcome the hurdle of mainstream adoption.
In actuality, digital currencies provide a trustworthy alternative to fiat currencies. The fact that digital currencies are decentralized means that these currencies do not have the potential to be manipulated by issuers. Historically this has been a challenge with some fiat currencies which may be manipulated based on the whims of the government issuers. Because digital currencies are not owned by a single individual or group, this is a greatly reduced probability of this occurring.
Another challenge associated with digital currency adoption is that they are not perceived as a viable long term store of value. Digital currencies are a recent innovation and the value of these currencies may fluctuate widely. Perhaps a change a perception in the role of money may assist in overcoming this challenge. Rather than considering money as a store of value, society may wish to consider the transactional ease as a greater benefit.
If we are to consider money as concretized energy, it is best if money (energy) is kept in motion. The greater the flow of money throughout an economy, the greater the benefit of everyone involved. Consider the analogy of the global economy to the human body. The human body requires the regular circulation of blood to maintain optimum health. The global economy may be viewed in very much the same way. The regular circulation of money throughout the global economy is vital to the health of the overall global economy. By reducing transactional friction, digital currencies have the potential to further optimize the energetic flow of money throughout the global economy.
The key to increasing widespread adoption of digital currencies is trust. Trust and confidence in digital currency will increase as additional merchants begin to accept them as payment. The ability to satisfy basic needs through payment with digital currency will also go a long way towards instilling trust in this form financial technology.