Do cash control spending more than digital or crypto currency?

[Die_empty]

A recent research by the Britsh Post Office unveiled that 71% of Brits planning on going on vacation in the UK this year intends to take out cash before leaving. There have been high increase in cash deposit and withdrawals in Britain. People are going back to cash because they believe that it keeps tighter control on their spending as living costs soar.

It is believed that cash helps people budget, as using it means you literally can count the pennies. Paying with a card or crypto currency make spending easy and convenient that sometimes one tends to overspend. Sometimes one might not even know the balance of his account but with cash you are always aware of how much you have.

What do you think?


https://www.bbc.com/news/business-62437819

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[_act_]

When the countries in the world are talking about cashless society, you are talking about how people are using more fiat. Take it or not, the world is going more digital daily. Though people still depend on cash, but the dependency on fiat may continue to vanish as more people are going digital. Some people just depend on cash because they know digital transfer may not be accepted in some places.

[Die_empty]

When the world are talking about cashless society, you are talking about how people are using more fiat. Tak it or not, the world is going more digital daily, though people still depends on cash.

It's not me that is talking about fiat but a research unveiled the happenings.

[_act_]

It's not me that is talking about fiat but a research unveiled the happenings.

My reply would have been different, but I couldn't see that link before. Evidence: https://ninjastic.space/topic/5409101

But I wonder why people want to make things strict for themselves, fiat is still fiat, be it paper money, digital fiat or CBDC. Instead to look for alternatives like gold or bitcoin. There are good time to invest in bitcoin, a time like now.

[mk4]

When the countries in the world are talking about cashless society, you are talking about how people are using more fiat. Take it or not, the world is going more digital daily. Though people still depend on cash, but the dependency on fiat may continue to vanish as more people are going digital. Some people just depend on cash because they know digital transfer may not be accepted in some places.

I'm not 100% sure, but I don't think this is about digital vs physical currency. Just the fact that people are having trouble living day-to-day lives hence them withdrawing their money and "Counting the pennies" as the article says.

[Ucy]

One of the reasons for this could be the availability of different physical currency denominations. Back then I tend to spend less when I have my funds withdrawn in lower denominations but spent more when in higher denominations as it was like carrying small quantity of physical currency coupled with strong desire to spend most of them on a single outing. I think it should be replicated on digital currency wallets by making it possible for users to split their funds in different parts. They can focus on spending one part (which could also be split into multiple parts) while having the other part timelocked or locked with passwords until the spendable part is exhausted and/Or more money is needed from the locked funds.

[NeuroticFish]

It is believed that cash helps people budget, as using it means you literally can count the pennies.

I agree to this, although one can look daily into internet banking app and "count the pennies" if he wants too (of course, if it's not technologically impaired).

However, imho it's not the main reason people take out cash for holidays. Imho people don't know what to expect in the new location. I've been this year at a wonderful location in Greece that had no ATM (OK, next town, a few miles away, had that). And almost everybody still prefers to be paid in cash. So having cash on you to cover for the holiday is a pretty much expected approach, no matter what politicians and banksters tell on TV.

[Alisha-k]

Digital currencies can be too easy and convenient to a point where your daily budgets becomes mere speculations. Paper money over the years has helped in controlling expenses and this has made me wonder if it will ever get replaced by digital currencies because with ones electronic device they can spend a monthly budget within a week or two but paper money helps alot with management

[stompix]

If we only look at people leaving on vacation in some other country then the cash thing is to be expected, as NeuroticFish said, you will have trouble relying only on a card, the moment you step away from major cities even in Europe you might find yourself in troubles. And it's not just the viability but also other things, like losing the damn thing or breaking it, a cc is durable and can withstand a lot of damage or dips in pools but there is still the risk. Also unlike cash, you can't split it and put 20% in a bag, 20% in the hotel safebox, and 20% in another pocket, and it's always good to have a  reserve.

Besides, even with cc cards, you can establish some form of cost control, you can have your statement and your bills directly on your smartphone and even set up daily reminders on how much you've spent which are more annoying than looking in your wallet.
If we talk about withdrawals about daily living expenses, I don't see the point again, why not pay with your card?

One of the reasons for this could be the availability of different physical currency denominations. Back then I tend to spend less when I have my funds withdrawn in lower denominations but spent more when in higher denominations as it was like carrying small quantity of physical currency coupled with strong desire to spend most of them on a single outing.

I think you're the exception of the rule, people are less willing to spend large bills than small ones:
https://www.wsj.com/articles/BL-WALETB-2220

If I only had 5-10 bills in my wallet I wouldn't probably care at all about spending but if I would only have a 500 bill I would think twice before everything, breaking it to get a cab? No, take the bus! Should I stop for a coffee, I don't have coins and I don't want the cashier to give me weird looks while giving me the change. Order food? But if the pizza guys don't have a change.... let's see what I have in the fridge!

[cabron]

A recent research by the Britsh Post Office unveiled that 71% of Brits planning on going on vacation in the UK this year intends to take out cash before leaving. There have been high increase in cash deposit and withdrawals in Britain. People are going back to cash because they believe that it keeps tighter control on their spending as living costs soar.

It is believed that cash helps people budget, as using it means you literally can count the pennies. Paying with a card or crypto currency make spending easy and convenient that sometimes one tends to overspend. Sometimes one might not even know the balance of his account but with cash you are always aware of how much you have.

What do you think?


https://www.bbc.com/news/business-62437819

Agree. Its why its easy to spend or gamble BTC because you may  not think of it as money compare to cash at hand. You will only realized you lose money when your BTC is gone. I gamble more when its just XRP  or TRX that I'm using.

Most stores don't even accept crypto. Cash is always a good way to have all the time. You just have to appear without load of cash with you in the public because you don't want to attract attention.

[Wexnident]

I guess the fact that digital payments are available for most stuff and they're pretty instant is the reason why hard, cold cash is preferred when it comes to budgeting compared to digital. It's convenient, and yet unusual hence why impulsive actions take place. Plus, I guess it's been engrained or something similar to us about using cash physically instead? A transition to digital is bound to happen imo but it would definitely occur on another generation being used to it instead of most of us where using cash is still pretty dominant.

I'm definitely in it for the digital though. A lot more convenient in most cases.

[davis196]

I remember that it has been scientifically proven that spending cash is more "painful" for the buyer than spending money via using debit/credit cards. I can't post a link to the source of information, but I remember reading and watching Youtube videos about this topic years ago.
Crypto currencies are out of this comparison, because most of the people associate them with investment opportunities, rather than actual currencies, so spending crypto is generally considered a bad decision (because the crypto prices might go up some day, and the person, who spends crypto on random stuff will regret this buying decision). Paper cash has it's own advantages and it's here to stay. I'm a Bitcoin fan, but I'm not going to s*it on paper cash. We are against the central banks and their stupid monetary policies, not against the concept of paper money.

[avikz]

It's a psychological trick that is often practiced in Japan along with couple of other activities. Yes, I have practiced this couple of times and it indeed gave me a complete control on my finances. Card payment is always convenient but it comes at a cost. This cost is even higher in crypto payments.

On the other hand, keeping cash at home gives you a bird's eye view on your finances which tells you how much you should spend and on what. Crypto is a bad payment method if you compare it with other available options.

[Gozie51]

Fiat and cryptocurrency use are not to be compared. Basically crypto is used for investment quantification and value but fiat is for day to day expenditure through payment for products and services, so it is not necessarily valued for volatility except when inflation and deflation set in on it. You don't necessarily buy fiat for hodl but you receive it from services rendered and product sold but you buy crypto in expectations of further increase in the future. Fiat is usually pegged based on the resources in production and export of the country like example in crude oil. The government use fiat to peg their budget plan for the year and using it as a means of planing and distribution across but local and international but cryptocurrency doesn't play such role because it price can not be determined by government policy pricicely.

[bestcoins1]

Digital currencies can be too easy and convenient to a point where your daily budgets becomes mere speculations. Paper money over the years has helped in controlling expenses and this has made me wonder if it will ever get replaced by digital currencies because with ones electronic device they can spend a monthly budget within a week or two but paper money helps alot with management

What I feel now is about more convenience with digital currency because besides being able to use it for certain trades, I can also directly convert it into fiat currency without having to cash it into paper form. Because fiat can also be stored in several other electronic applications even though it is also related to the Bank.
So it can be concluded that digital currency provides more specific assistance than paper money which is often used by everyone in everyday life.

[Moneyprism]

it's true that cashless transactions are very helpful and make transactions faster.. but not all places in the world accept payments using the cashless system,, sometimes travelers need cash for their various needs, and therefore most travelers prefer to bring cash money compared to cashless payments

[Kakmakr]

Yes, I can agree on this.. because I still withdraw cash at a ATM to pay for certain things. When I "feel" and "See" the Dollar bills in my hand, I tend to spend less, because I continuously look into the wallet to see how much money I have left.

I think this will not be the same with digital currencies like Bitcoin, because that physical "touch" element does not come into play. You see a bunch of numbers when you do the payment, so you are more aware of the amount of coins that are left in your wallet, so it is a bit better than simply swiping a card and not having that physical link to your money. 

Cash is King.... Bitcoin is the Queen. 

[Lucius]

It is believed that cash helps people budget, as using it means you literally can count the pennies. Paying with a card or crypto currency make spending easy and convenient that sometimes one tends to overspend. Sometimes one might not even know the balance of his account but with cash you are always aware of how much you have.

From my personal experience, I can say that it happened to me many times that I spent much more when I used cards (and even Bitcoin) than when I paid in cash. Usually, before going to the store, I make a list, and calculate how much money I will need to buy it, and I take that amount with me along with some extra money, because prices are always subject to change. This helps me to focus on only those things that I want to buy, and that I cannot spend more than what I have in my wallet.

The same thing can be practiced with our mobile hot wallet if you consider paying in physical stores, while the worst option is a bank card with which you have the least control, especially if you know that you can spend more than you actually have.

However, it all boils down to how much we can control ourselves when shopping, and most people still admit that they spend more money than they planned, and that they usually buy things they don't really need.

[xSkylarx]

People are going back to cash because they believe that it keeps tighter control on their spending as living costs soar.

It is believed that cash helps people budget, as using it means you literally can count the pennies. Paying with a card or crypto currency make spending easy and convenient that sometimes one tends to overspend. Sometimes one might not even know the balance of his account but with cash you are always aware of how much you have.

What do you think?

What happens to me is the complete opposite. I can control properly my spending if it's on a digital wallet. I can easily monitor on the application's dashboard what I have and only withdraw how much I really need. If it's on fiat, I easily spend it until I will just realized that I'm almost running out of money. I guess it also depends on where country you are. If business establishments there still prefer the traditional way of payment then having digital money or crypto will help you to spend less.

[Biscutard]

People are going back to cash because they believe that it keeps tighter control on their spending as living costs soar.

It is believed that cash helps people budget, as using it means you literally can count the pennies. Paying with a card or crypto currency make spending easy and convenient that sometimes one tends to overspend. Sometimes one might not even know the balance of his account but with cash you are always aware of how much you have.

What do you think?

What happens to me is the complete opposite. I can control properly my spending if it's on a digital wallet. I can easily monitor on the application's dashboard what I have and only withdraw how much I really need. If it's on fiat, I easily spend it until I will just realized that I'm almost running out of money. I guess it also depends on where country you are. If business establishments there still prefer the traditional way of payment then having digital money or crypto will help you to spend less.

In my case, digital wallet or transactions can be one tap away and it can be affected by your mood, boredom and frustration. Sometime you need a bit of fun and you'll go gambling with your digital wallet and sometimes you will lose and at the end of the day you'll regret that you've spent it on some boredom stuff. But in the other hand digital wallet can also give you convenience when doing errands and transaction you'll not need to go outside or physically present.