| Physical currency per bill needs to travel once and in big quantities in the same truck. Then it circulates on "residual human energy" from pocket to pocket for years. There is an absolute initial cost, but then there is none. CC servers (and digital banking in general) needs a permanent upkeep of power. I think the cost for paper money is neglible. Coins however is more interesting. Their face value tends to be less, yet weight is substantial compared to a paper bill. Here I can see more an argument for cost. This actually was very relevant going back a bit in history when we used silver and gold for money. You get a whole issue of material cost vs it's face value as well. In case of heavy deflation, people might just melt pennies (copper) and sell them for other (ie. international) currency. To increase the person's actual buying power. There's also a general argument to be made for copper and in the past gold for currency, as these materials hold an inherit value for their atomic makeup and it's applicable use which simply can't be justified/compared vs it's value as a human usable currency. In general, both currencies have their values. Physical: needs no power upkeep, nor situational power and data connection to work. This is great for reliability. A nice thing about digital currency though, is the power we get. Instant transfer over physical irrelevant distances is pretty nice. Another nice thing is I feel more comfortable with just 20 bucks cash. If I wanted to go out in a world without digital transfers, I would carry a lot with me, for the drinks, the food, buy a situational ticket for some party you come across, money for a taxi/train. In a world without digital currency, "hitting jackpot" for a robber is statistically absolutely higher, and thus it would potentially increase crime levels quite a bit. |