Can cryptocurrency replace regular money?

Interest in cryptocurrencies has grown significantly since the beginning of 2021. This is confirmed by a study by the Gemini crypto exchange.According to a survey conducted by the platform, 63%Americans are actively interested in digital assets and plan to purchase them in the future, and 14% of US residents are already crypto investors, writes RBC Crypto.

The experts explained what advantages cryptocurrencies have over fiat money and whether digital assets can completely replace cash.

Monetary instruments

As long as fiat is the only monetaryas a tool for interacting with the state (payment of taxes, accounting and tax reporting, etc.), cryptocurrencies cannot be used as a universal monetary instrument, explained Roman Nekrasov, co-founder of the LAZM mobile data center.

According to him, cryptocurrencies will remain a rather risky instrument as long as the financial and IT literacy of the population is at a low level.

"We must not forget about the high volatility of cryptocurrencies, and it will not be possible to overcome it while we look at cryptocurrencies in terms of their rate to fiat currencies.", - the expert noted.

National currencies of major world economiesThey are distinguished by the stability of the exchange rate, they are reliable, since the state acts as their guarantor, the state's currency must be accepted on the territory of the country, explained Sergey Troshin, head of the Six Nines data center. He admits that in the future a cryptocurrency may appear with all the advantages of fiat, but today, according to the expert, these assets have different niches.

However, fiat money has a number of disadvantages,noted Sergei Troshin. According to him, this is a lack of anonymity, exposure to inflation, tracking of transactions by states and the risk of a complete freeze of accounts.

Why is cryptocurrency better?

Among the advantages of cryptocurrencies are Roman Nekrasovcalled the speed and cheapness of transactions (especially when transferring large amounts), the absence of barriers to cross-border transfers, as well as full ownership of the asset.

The expert added that no regulator candeprive the investor of cryptocurrency, as can happen with fiat money in the event of a freeze of bank accounts. Also, cryptocurrencies can provide a high degree of anonymity, added the head of the Six Nines data center.

Cryptocurrency opens up a new direction ineconomy, allowing to build and use financial services according to new models, without reference to Central Banks or other regulators, explained the head of the fintech company Exantech Denis Voskvitsov.

Entry threshold

More and more people are buying and storing cryptocurrency on crypto exchanges, doing without complex specialized wallets, noted Sergey Troshin. In his opinion,the entry threshold to the crypto market continues to decline: Crypto wallets are increasingly being built into smartphones and will eventually become as convenient as regular mobile banking.

The financial barrier to entry into the crypto world is lower thanfor entering the stock market, and lower than for using banking services, added the co-founder of the mobile data center LAZM. But the level of IT literacy is much higher, he stressed.

“Cryptocurrencies are regaining full control overassets in the hands of the owner, but the responsibility is also placed on his shoulders. It will not be possible to come to the bank and scandal that the payment has gone somewhere wrong. The sender will be responsible for the error. "- explained Roman Nekrasov.

Will cryptocurrency replace fiat?

Fiat money is nowhere in the foreseeable futurewill disappear, because this would mean the refusal of the authorities of various countries from monetary sovereignty, Roman Nekrasov is sure. According to him, many tools for managing the currency and stock market have also been developed specifically for fiat money, and with cryptocurrencies it will be necessary to completely abandon leverage, which the authorities will not agree to.

“It is unlikely that such a scenario is possible in the foreseeable future. Digital currencies issued by central banks will appear, but these are not cryptocurrencies, since they are not decentralized. "- added the expert.

Where is it more profitable to buy cryptocurrency? TOP-5 exchanges

For a safe and convenient purchase of cryptocurrencies with a minimum commission, we have prepared a rating of the most reliable and popular cryptocurrency exchanges that support deposits and withdrawals of funds inrubles, hryvnias, dollars and euros.

The reliability of the site is primarily determinedtrading volume and number of users. By all key metrics, the largest cryptocurrency exchange in the world is Binance. Binance is also the most popular crypto exchange in Russia and the CIS, since it has the largest cash turnover and supports transfers in rubles from bank cardsVisa / MasterCardand payment systemsQIWI, Advcash, Payeer.

Especially for beginners, we have prepared a detailed guide: How to buy bitcoin on a crypto exchange for rubles?

Rating of cryptocurrency exchanges:

#	Exchange:	Website:	Rating:
1	Binance (Editor's Choice)	https://binance.com	9.7
2	Bybit	https://bybit.com	7.5
3	OKEx	https://okex.com	7.1
4	Exmo	https://exmo.me	6.9
5	Huobi	https://huobi.com	6.5

The criteria by which the rating is set in our rating of crypto-exchanges:

• Work reliability— stability of access to all functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the duration of the market and daily trading volume.
• Commissions– the amount of commission for trading operations within the platform and withdrawal of assets.
• Feedback and support– we analyze user reviews and the quality of technical support.
• Convenience of the interface– we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
• Platform Features– availability of additional features — futures, options, staking, etc.
• final grade– the average number of points for all indicators determines the place in the ranking.

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