Why Digital Money Hasnt Killed Cash
But this article is only the tip of the iceberg. Let’s cut to the visceral chase. If Hillary was POTUS, with a Democrat congress, would you be more inclined to trust her with the security of your money, or cash?
Digital money is incredibly easy to abuse by government. They can use it to set prices, wages, inflation and deflation. And nothing constrains them from doing so honestly.
Right now, millions of Americans live and work in the grey economy, where cash is king. Many even reject ID cards and are deeply distrustful of government of all kinds. So they work for cash, and if they can’t buy it with cash, then they don’t buy it. Importantly, many of those they deal with do use virtual money, so vital transactions are made by them, but still on a cash basis with their “blank” friend.
As noted in the article, even in “cashless” Sweden, cash is still plentiful. And the reason for this is found in basic economics.
“Anything desirable and in abundance can be used as currency.” Which is why socialists crave to control and ration everything, and if it is in abundance, to create shortage.
But what gives it teeth is Gresham’s law. In a contest between virtual money and cash, cash will always win, because it will be what people hoard. So it will increase in value, whereas virtual money will lose value, because that is what people will spend.
Why hoard electrons on someone else’s computer?