Today, many people use the internet to share and receive money.
Why is this the case?
Is it a positive or negative development?
Recently, there has been a trend of many people using the internet to make financial transactions. While this trend, mainly driven by the convenience and speed digital tools offer, is no doubt without its benefits, it does more harm than good.
One reason for the recent shift from offline to online money transfers is the convenience the internet provides to its users. Through online platforms and websites, it is possible to send and receive virtually any amounts of money from the comfort of one’s home. This allows people from diverse backgrounds, particularly from disadvantaged communities, to exchange money digitally, without turning to centralized banks that demand undue time and effort to perform the same task.
Speed is another driving factor. In the current fast-paced and action-packed world, in order to enhance their efficiency and productivity, people try to complete daily, professional, and educational activities as soon as possible. This leaves relatively little time for other endeavours, including fiscal transactions, making online methods, which are much less time-consuming and more affordable, even more appealing for people.
One major benefit of using the internet to transact money is the democratization of economy. People, regardless of their financial and social status, can make money transfers across the world, with the internet. Unlike traditional banks that set certain limits in terms of time and amounts of money planned to transfer, online applications, such as PayPal and Click, offer a decentralized banking system entirely accessible to the public at anytime and anywhere.
However, the downsides associated with transacting money online far outclass the benefits. Firstly, the internet is prone to cyber-attacks, data breaching, and misinformation. The data people use on the internet is always under the risk of digital harassment, increasing the danger of information being hacked, disseminated, and used for non-consensual purposes. This might lead to the dissemination of people’s personal data and loss of money intended for a particular transaction.
Furthermore, the digital divide still remains a problem. There are still individuals with limited or no access to necessary tools, such as a phone, computer, and proper internet connection. This can result in the perceived gap between the rich and poor widening further, with the affluent portion of the populace employing online platforms to make even more profit, while the disadvantaged are left with limited resources.
In conclusion, the growing preference for digital money transfers can mainly be attributed to the convenience and swiftness of such transactions, making them a more attractive choice in today’s hectic world. While notable benefits of this phenomenon include the decentralization of banking system and swift financial transactions, the potential negative outcomes, such as cyber-attacks, misinformation, and widened socio-economic disparity, far outweigh the advantages.
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