Do we still need cash?

by Mark Ward January 23, 2017

Do we still need cash?

We've talked many times in our articles about the need to keep a small amount of cash in your minimalist wallet. Overwhelmingly there are more reasons why we still need cash as individuals, economies, and yes, even governments. So do we still need cash?

Yes, for the following reasons:

  • Not everyone has a bank account
  • Not every person or business takes cards
  • Something will end up taking its place
  • Cash is essential in a crisis
  • It's anonymous
  • We already tried and it didn't work

​Not Everyone has a Bank Account

Believe it or not, there are a sizable number of people who do not have a bank account. Even with most American's performing electronic purchases and transfers, there is almost 8% of the population who does not have a bank checking or savings account. Over 60% of these people used to have bank accounts, but due to poor management the system that was their key to all kinds of services, turned into penalties and lost opportunities. For people in this category, do they still need cash?  Well, cash is still king, and their only access to goods and services.

Not Every Person or Business takes Cards

With the ubiquity of credit and debit cards you'd think every business would accept them. Well, you'd be wrong. Businesses who accept credit cards must pay upwards of 4% of the total amount in fees back to credit card processors which cuts into their profit margins. To this end, many will only accept credit cards for payments exceeding a certain amount. Anything less and you're expected to pay in cash. Never leave home without emergency cash. So far, do we still need cash?  Yes we do.

Something will end up taking its place

It's an economic and sociological principle. When a hole of opportunity opens up, something will fill it. When the flexibility of cash is removed, then something else will take its place. In countries where governments have tried to remove cash from their system to enable ultimate capture of taxable activity, other methods, or alternate currencies have taken its place. People are inventive and won't be restricted by any governments Orwellian adventures.

Cash is essential in a crisis

Ever been in a situation where the power is out? What about when the cabby can't take your card? What about the bell-hop? At the flea market, street food vendor, little girls lemonade stand? The situations can be endless, and just as inconveniencing when you realize you can't use your card to pay. We've even talked about the need to carry cash as one of the top 5 things you should have in your wallet. That's when it's time to pull out the emergency cash you keep stored in you minimal wallet. With the availability of even small amounts of cash, you can still function. These scenarios also demonstrate why a fully digital payment system will never materialize. Physical money will never by replaced and is always the lowest common denominator when something goes wrong and commerce need to happen.

It's anonymous

Many people like using cash because its anonymous. With digital payments, every transaction is recorded and sold to retailers and others for marketing profits. Through our purchasing habits and routines we're providing insight into our own lives. Comfortable with that? If so, then we're done with this topic, but if not, then cash is your thing. For small items it also helps to use cash if you're not comfortable with the vendor and the safety of your credit card information. Regardless, for people who don't like government oversight of everything purchased, cash is their go-to.

We already tried and it didn't work.

Have we forgotten that in the 1970's the death knell for cash was already being rung due to the expanding growth of credit cards. We've seen it going for 40 years now and it has yet to overtake cash completely. The story is revisited and is as old as money itself. There's always a plan to replace it, but in the end, it always stays.

That being said, we're truly in a "cash low" society now as expressed by Georgia State University. It won't go away, but we're about as low as it can go before we end up moving to alternate currencies.

So do we still need cash? Cash is still king.



Mark Ward
Mark Ward

Author




Also in Narwhallet

Credit Card Wallet, Love, Debt and the Future
Credit Card Wallet, Love, Debt and the Future

by Mark Ward February 27, 2017

It wasn't until the 1950's that the birth of the credit card occurred, and things have steadily progressed since that time. Bank of America introduced the BankAmericard, the first general purpose credit card, to the world.  If you're familiar with the VISA symbol, it's interesting to note that the operational entity of Bank of America that issued the first BankAmericard, became VISA in the mid-1970's

Continue Reading

Top Travel Wallet, What You've Wanted to Know
Top Travel Wallet, What You've Wanted to Know

by Mark Ward February 24, 2017

The idea of a travel wallet came as no surprise. Everyone has had the problem, you look at all you "think" you need access to during your journey, so you look for something to load up all the "necessities".  I make a point of calling out "think" and "necessities" because it's all made up in our minds.

Continue Reading

The Polyester Tie; World's Synthetic Fashion Steel
The Polyester Tie; World's Synthetic Fashion Steel

by Mark Ward February 16, 2017

Polyester tie fabric is the basis of our wallets and other accessories, the history of this remarkable cloth has made it an industrial powerhouse.

Continue Reading