Is Cash Really Useless?
Why cash is still essential to today's society.
Ladies and Gents,
Welcome back to The Random Thought Of The Week. Apologies for the late post. I’ma cut right to it. Has cash become useless? In the past few years, there has been a growing trend of eliminating cash from wallets (and even wallets as a whole). So, let’s grab our wads of cash, stuff them in our wallets, and take a deep dive into whether cash is a thing or not.
In recent years, there has been a growing movement to eliminate cash from our society. This is for a variety of reasons. For one, cash is not as convenient as modern payment methods, like cards and digital payment. Another reason is the risk associated with cash. Theoretically, at any moment, someone wearing a beanie and smoking a cig could walk up to you and rob you of all the cash you have.
Another reason why cash is becoming obsolete is the increasing use of digital currencies (cryptocurrency!). If none of you have, I strongly encourage everyone to invest in Dogecoin. And by strongly encouraged, I mean don’t. Or you could, and essentially set your money on fire and watch it leave you like a racehorse with a broken leg (see previous posts).
But is cash really going to be obsolete? Some say yes, but the true answer? No, cash will never cease to exist. Do I, H.R. Berry, believe in living without cash? No, I think it would be a terrible idea.
One reason why people don’t want to carry cash is because of security concerns. They claim that they want their money to be safe, so they use online payments. This is just silly. As technology becomes better, many bank accounts are going to be at a higher risk of digital theft (yes, cybersecurity will get better, but the more money we digitally use, the more will be digitally stolen).
Another point we must think about is that when we carry cash, we only have a limited amount of money on us. Most people don’t carry more than $100 dollars in cash on them. Most people keep the vast majority of their money in bank accounts, with some accounts holding hundreds of thousands of dollars (hopefully not more than 250k - Shoutout to the FDIC)
Amount of cash the average American carries:
$67
The average amount of money Americans have in their account:
$41,600
If I were to steal money, I would definitely rather steal 40,000 dollars than 67 dollars, but maybe that’s just me.
So, in terms of theft, carrying cash can be risky, but many people often overlook that your money is never truly safe in accounts either. Bank accounts are extremely secure, but cyber theft is becoming more common. Am I saying keep your money out of the bank and pull the “under the mattress move”? No, you should keep your money in the bank. While cash can be stolen, there are times when cash is essential.
Why is cash important?
Cash is important for a variety of reasons. For one, it is essential to the economy. It is difficult to gauge how badly the economy would suffer if cash simply ceased to exist. Many banks would fail, which would
Another reason why cash is important is because it serves to check your spending. Credit cards are so easy to swipe to buy a TV, five cans of Pringles, and a Toyota Corolla. Cash helps check your spending because when you run out, you’re out.
Lastly, cash is great for emergencies. If you have an emergency, people are often more likely to help you when incentivized by cash. Cash often serves as a last-resort resource in emergency situations.
The Random Shower Thought Of The Week
If money is the root of all evil, then why do churches ask for it?
Ladies and Gents
I hope you enjoyed this week’s random thought. As always, share with anyone and everyone. This newsletter relies upon you sharing it. Stay tuned for next week’s post. As always, I’d like to leave you with a quote from two great philosophers, Bill and Ted. “Be excellent to each other, and party on dudes!”
All the best,
H.R. Berry