What is Britcoin, and how will it affect you? Is it even a good idea? Read along to find out!
Chancellor Rishi Sunak has unveiled plans to introduce a cryptocurrency which will replace the current, economic system. The digital money would completely replace physical notes: no more £2 pocket money every Saturday for buying sweets. Aside from having our national currency named after a pun of ‘Bitcoin’, people are understandably nervous. However, could Britcoin be the answer to England’s problems?
Britwhat? Why should I care?
Britcoin would cut out many of the costs which conventional banking has because it is entirely digital. this would make it a lot easier for smaller independent firms to manage their money. Also, there would be even less delay when being paid by employers or receiving refunds from businesses. Also, since the 2008 recession, economies have been stagnating globally and this could be just the kick they need. Lastly, it could be a very successful investment for the public.
Many people see cryptocurrencies as the next logical step in economics, and China has already begun testing a digital version of their own. Successful cryptocurrencies are returning far more than most other conventional investment methods today, which makes Britcoin look very attractive.
So we should go for it then?
Hold your horses and make no mistake: this is a risky proposition, and there are many reasons to give it a miss. Cryptocurrency is still a very new concept and one that has been seen to vary wildly in success. Some lucky teenagers may have become millionaires from bitcoin, but that doesn’t mean it’s the answer to all our problems. Critics say Britcoin could easily raise mortgage rates and potentially create inflation, which means everything would become more expensive. A government-controlled currency might also give people less control over their own finances.
What does it mean for the planet?
There are also environmental issues: Bitcoin and other cryptocurrencies have also recently been found to have a huge carbon footprint. In an age where the climate is more important than ever, big projects like this one may do more harm than good. There’s also worries about people- what about those who are unable to operate or access the necessary technology, and how will homeless people survive?
When is this happening?
Don’t panic just yet- Rishi Sunak has only just suggested this as a concept. For the next year, a dedicated team will analyze the positives and negatives of such a system. The fact that Britcoin is even being considered is huge news, but scary too. Is it time to say goodbye to the pound coin? Only time will tell! Check out more Trill! news on Bitcoin here.