Is money in hand doomed

Is money in hand doomed. Are we in the last days of having cash in the wallet and coins in the pocket. Is the future here now and we do not realize that it is happening now. Credit Cards, Debit Cards, Direct Deposit, Direct Withdrawl, Online banking, Online selling and of course buying, fastpasses for tolls, metro cards for public transportation, etc..I could go weeks without having any actual money on me. Do you think that we are in the final phase of actual money? Do you think that it will kill some of the collectable coin markets and make others stronger or is our thing a thing of the past as well?

 

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I think I might see it in my life time....but there is going to have to be alot of changes....#1 is that the "older guys" are going to have to die off...not many are going to change like that....#2...is that there is have to be something done to American Debt.....that is why the Mint says it sells its coins at higher prices...to pay that off.....#3...is that there are going to have to change many many things...banks aren't going to like it.....

I don't know if it will happen or not.....its kindof like Computer grading....

Speedy

 

I think fiat money and clad coinage are in for a rough time. If they survive, most likely it will coincide with a drop in the standard of living. If they don't, we'll probably get the electronic equivalent of a commodity based money with some intrinsic value. But I agree that coins and paper will probably disappear over time, but not quickly. Gold and silver coins aren't going to return to circulation. Existing coins will probably become more and more highly valued over time. However, I would expect that there will be something new to collect, maybe medals and commemoratives, even if circulation coins disappear.

 

Although it will be bad for coin collectors like us, but the end of cash in inveitable. Even though it will take decades to fully come to term. We starting to get to the point were fiat is not so fiat. I mean copper is almost gone and Canada has greatly reduced nickel in their coins they are starting to cull pure nickel coins to produce cheaper nickel plated steel coins. Its getting to be to expensive to mint coins and paper money just does not last. Electronic money is easier to use and easier to track.

 

well, if we have a money card, it could get stolen, reprogrammed, or any other sort of new technique that could be adapted. It's just like counterfeiting, it can be done easily. one more reason to spend the money on coins.

 

Money could get stolen, and security features could be added to cards to prevent theft and access to the money. Unlike real money no matter what security features you add you can not protect against thiefs. Yes, I know there will still be problems but electronic money is easier to protect. I am not saying its a perfect system.

 

I think collectable coin markets, for modern mint issues, have been doomed for many more reasons than cashless trade.

 

There are Fees for Using PLastic

I thought the same as most of you because I personally like to use my debit card for purchases instead of carrying cash. However recently while getting gas I noticed that this particular place was now charging an extra 3 cents per gallon for credit or debit card users. That in conjuction with the fact that my coin dealer (who is a great friend) informed me that he has to pay a fee for every credit card used to make purchases in his store. That is why I always use cash when I buy from him, to save him from losing some of his profit margin on these fees.
Debit cards are great in my opinion and I prefer to use them, but if it is going to cost me more for the priviledge then I for one will revert to using cash.
Also there are too many vending/dispensing machines that require cash and or coin to operate. Those industries would have a fit about the cost of updating, should currency be limited or removed from our system.

 

Paper and metal money will be around forever.

 

but there also fees for using cash, not many people realise it can be expensive to transport cash, armoured trucks and guards are not cheap. If the person only owns a small store they still have to take the money to the bank and that will cost time and resources (Gas or money), there is also the possibility of losing the money pouch on the way to the bank which would be very costly. It may cost a business a bit to accept plastic as payment but there many benefits.

 

Value of Currency?

Reading these posts has invoked a thought on this subject. What is the value of our currency really? We know what we make an hour at work and what we can afford with what we have after taxes and bills, but should our system fail we are stuck with cash, credit and bank account that are worthless. I mean that the silver and gold coins we collect have a value outside of the symbolism of the coin. Clad coins and paper money (modern currency) have no value outside of their symbolic value. I doubt that we have the gold reserves to back our currency. Even if we do I doubt that in a crisis gold would ever be exchanged for dollar bills. Getting rid of a physical monitary system would not change the fact that the true value of wealth will be ownership of tools and functional devices that enable us to feed ourselves or simply survive the night.

Its just a thought. :kewl:

 

A "value" that changes pretty much every day, just like the "value" of a convertible currency.

I don't think coins will disappear any time soon. Only a very small percentage of financial transactions is cash based anyway, and cash will surely be used to an even lesser extent in the future. But it's there to stay for quite a while.

Christian

 

The fees for businesses to accept credit cards are not insignificant. Last time I checked, MC and Visa were around 2-3% of the purchase price, and AMEX was near 5% (which is why they're not as accepted anymore). I only use plastic if I'm making a purchase over $30 (or I need a paper trail for a 'business expense' deduction on my taxes).

I don't think cash/coins will go anywhere in the foreseeable future. Many societies (even in western Europe) prefer to use cash. The US may be headed towards a "more plastic" future, but until more countries join us, we will always need cash and coin. Even American versions. Remember that most US currency circulates outside of the United States.

 

Nothing is foolproof. If it's worth anything, it can and will be counterfeited. And, coins have only been around 3000 years, I don't think they're going anywhere soon. Paper is a different story though.

 

I think you need to invert this point of view in order to see what is really happening. Of course all values constantly fluctuate in a free market. But this includes the value of clad coins and fiat currency. If the price of gold goes from $400 to $500 per ounce, part of that is a change in the value of gold, but most of it is a change in the value of the dollar. The dollar has declined in value relative to gold. People are used to thinking about money as a constant, but it's value fluctuates too -- mostly downward over the past 90 years.

 

Yes, I am aware of that, since over here I use the euro. Right, the prices of precious metals do not reflect the "state" or perception of any single national economy as much as currency rates do. I just wanted to point out that (no matter in which currency you calculate) the price/value of gold varies too ...

Christian

 

Dont forget there is always the option of using plastic coins and notes

De Orc :hail:

 

Touche

 

It will be interesting to see if there is a limit to what people will put up with.

 

What will it be like when the bar owner pays off the mob boss then?

He opens the locked briefcase and in the middle, taped to the bottom of the case is... A PLASTIC CARD!!!