Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Gold Bullhorns Quieted for a Day, at Least - 22nd Feb 19
US Auto Loans - Americans Missing Car Payments Is a Symptom of a Much Bigger Problem - 22nd Feb 19
Stock Traders Must Be Cautious Part III - 22nd Feb 19
Stock Traders Must Stay Optimistically Cautious II - 22nd Feb 19
Sheffield FlyPast Footage - "Mi Amigo" US Bomber Crash Memorial Endcliffe Park - 22nd Feb 19
Sheffield "Mi Amigo" Memorial Fly Past , BBC Crew Setting Up Stage for Breakfast TV Endcliffe Park - 21st Feb 19
Stocks Closer to Medium-Term Resistance Level - 21st Feb 19
The Stock Market’s Momentum is Extremely Strong. What’s Next for Stocks - 21st Feb 19
QE Forever: The Fed's Dramatic About-face - 21st Feb 19
Gold Technical Perspective – Why So Bullish? - 21st Feb 19
Sheffield "Mi Amigo" Memorial Fly Past at 8.45am on 22nd Feb 2019 - 20th Feb 19
Here’s The Real Reason You Stress About Money - 20th Feb 19
Five Online Marketing Predictions that will Matter in 2019 - 20th Feb 19
Has Gold Price Reached Upside Resistance Near $1340-1360? - 20th Feb 19
So Many Things are Not Confirming Stock Market Rally - 20th Feb 19
Forex Trading Management: The Importance of Being Prepared - 19th Feb 19
Gold Stocks are Following This Historical Template - 19th Feb 19
Here’s Why The Left’s New Economic Policies Are Just Stupid - 19th Feb 19
Should We Declare Emergency for Gold? - 19th Feb 19
Why Stock Traders Must Stay Optimistically Cautious Going Forward - 19th Feb 19
The Corporate Debt Bubble Is Strikingly Similar to the Subprime Mortgage Bubble - 18th Feb 19
Stacking The Next QE On Top Of A $4 Trillion Fed Floor - 18th Feb 19
Get ready for the Stock Market Breakout Pattern Setup II - 18th Feb 19
It's Blue Skies For The Stock Market As Far As The Eye Can See - 18th Feb 19
Stock Market Correction is Due - 18th Feb 19
Iran's Death Spiral -- 40 Years And Counting - 17 Feb 19
Venezuela's Opposition Is Playing With Fire - 17 Feb 19
Fed Chairman Deceives; Precious Metals Mine Supply Threatened - 17 Feb 19
After 8 Terrific Weeks for Stocks, What’s Next? - 16th Feb 19
My Favorite Real Estate Strategies: Rent to Live, Buy to Rent - 16th Feb 19
Schumer & Sanders Want One Thing: Your Money - 16th Feb 19
What Could Happen When the Stock Markets Correct Next - 16th Feb 19
Bitcoin Your Best Opportunity Outside of Stocks - 16th Feb 19
Olympus TG-5 Tough Camera Under SEA Water Test - 16th Feb 19
"Mi Amigo" Sheffield Bomber Crash Memorial Site Fly-past on 22nd February 2019 VR360 - 16th Feb 19
Plunging Inventories have Zinc Bulls Ready to Run - 15th Feb 19
Gold Stocks Mega Mergers Are Bad for Shareholders - 15th Feb 19
Retail Sales Crash! It’s 2008 All Over Again for Stock Market and Economy! - 15th Feb 19
Is Gold Market 2019 Like 2016? - 15th Feb 19
Virgin Media's Increasingly Unreliable Broadband Service - 15th Feb 19
2019 Starting to Shine But is it a Long Con for Stock Investors? - 15th Feb 19
Gold is on the Verge of a Bull-run and Here's Why - 15th Feb 19

Market Oracle FREE Newsletter

The Real Secret for Successful Trading

What the Decline of Cash Means for the Global Economy

Personal_Finance / War on Cash Sep 27, 2018 - 10:04 AM GMT

By: Steve_Marks


If there's one economic trend that has quickly come to define the nature of money and the future, it's the decline of cash. Currently, it's estimated that a mere 8% of all global wealth actually exists in a physical cash format. The rest is just numbers on a screen, with no physical presence whatsoever.

While this is unlikely to ever become an overnight issue, unless everyone in the world decided they all wanted to withdraw their life savings at the same time, it does raise some interesting questions about the future. The proportion of physical cash left in the world is shrinking fast and very soon cash as we know it may not exist at all. Here's what this may mean for the global economy.

An Easier World for Consumers

The reduction of cash to an easy-to-trace, easily-to-move digital format may seem scary for some, but it's actually a perfect scenario for the average consumer. With a majority of transactions now being completely cashless, consumers are able to pay for virtually any good or service in an instant, no matter where they are in the world, with the added benefit that the money is less likely to be lost or stolen.

Some digital platforms have been pioneers in the cashless revolution, such as online retail giants and online casinos. Online casinos encapsulate perfectly the benefits of going cashless: consumers are able not only to deposit money with a casino from their own computer, they are also able to buy services, amass more digital money via online match bonuses and of course, win money and increase their wealth through online versions of games such as slots, blackjack and poker. Just a quick look at casino sites like this illustrates very effectively why a cashless economy makes the consumer king. The future truly is digital.

Reduced Crime

One of the biggest benefits is the effect this trend has on global stability. Firstly, money being digital makes laundering significantly more difficult, given that everything is traceable and closely monitored. On a more basic level, the decline of cash and abolition of large notes makes it much harder for criminals to transport large amounts of illicit cash. There's also the added benefit that potential victims are safer if they don't use cash, as only the most skilled criminal minds in the world would even have a shot at stealing someone's life savings if they're held digitally in a bank. 

Heightened Security

This links closely to the previous point but requires attention. You can fill a bank vault with $100 bills, station dozens of armed guards around it and instal bomb-proof safe doors, but there's still a chance someone will be able to break in and grab the money. The digitisation of money means that there's quite literally nothing for anybody to steal. While of course digital accounts are still prone to hacking and forced withdrawals, the fact is that the incentive to steal is considerably lower if there's no cash on the table.

Some people take comfort in the reassurance of having cold hard cash, but this is a red herring. Real security comes from technology, rather than outdated modes of currency.

By Steve Marks

This is a Paid Advertorial.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules