Gold and silver coins are accepted even by foreigners, as they have got some intrinsic value. The advantages of the issue of government paper money are: 1. Paper money is documents representing money, such as bank note, promissory notes, bills of exchange or postal orders. List of advantages and disadvantages of Bitcoins Following is a list of advantages and disadvantages of bitcoins. There are always two aspects of each thing we see in our everyday life. When using paper money, you become more aware of your spending habits and can mitigate the risk of identity theft, which is associated with debit and credit cards. Gelatin, from animal hides, was used to size such papers and because the resulting papers were neutral to … The use of paper money had marked the beginning of a crucial stage in the evolution of money. More disadvantages of paper money: > It's easier to be charged interest with paper money than gold and silver. If a customer uses a credit card to buy an item over the Internet, the bank and the store can identify each other. 2. When a customer withdraws paper money from the bank and uses it to buy a product at a store, the bank does not know where he shopped, and the store does not know which bank he uses. Only then we will be able to use cards carefully and wisely. Advantages of Paper Money: The printing of paper money is easy to print with low cost and saving the time. Everyone will soon be using smartphones to pay for everything. Cheap and economical: Normally paper money is significantly simpler to issue. Pretty soon, paper money will only exist on the outskirts of society. Paper-based systems for managing documents and information is expensive because the company must allocate financial resources for both the cost of the materials and the labor power of managing them, … Credit cards are even considered bulky and inconvenient by today’s standards. Some people would advise not to begin with a demo account for a number of reasons. See, the problem with paper money is that it’s an unsustainable way of using currency. Hence within limits the issue of paper money comes very handy to the government at the time of dire need. Similarly, Paper money has pros and cons too. Disadvantages of Paper Money: But we cannot overlook the disadvantages of money: (i) Paper money is of no value outside the country of issue. However, there are some risks to paper trading which should not be ignored. Merits of paper money. Although Bitcoin has many advantages as compared to the present system of Paper Money, it also carries various disadvantages as well. > Because value of paper money is not in the money, your more likely to spend it carelessly, as compared to if it was gold and silver. A paper trade is a virtual trading, is a form of practice stock trading for educational purposes and allows investors to trade in securities without investing real money. Cards/plastic money is not a complete replacement for cash; Use of cards can also be risky in some cases For most industries, a paper-based system is costly and insecure. Merits or Advantages of Paper Money; Advantages and Disadvantages of Paper Money. Disadvantages of paper trading. Euphoria Trading The main one, according to them, is the sense of euphoria paper trading can give. How did paper money get introduced? The practice of using paper money started during the 17th and 18th centuries. So far I’ve been sounding like a nice, pleasant Bank Executive who is convincing you to open an account. Life and death, Plus and Minus, Right and Left, Up and Down. Most of us use plastic money today, but it is necessary that we clearly understand the merits and demerits of it. What is Paper Trade? 3. Paper made before the 19 th century was often made by hand from linen and cotton rag materials which are excellent sources of high cellulose, long fibers. Advantages and disadvantages of paper money PAPER MONEY :- Mr. Hanson has defined the paper money in the following words, " Paper money means the paper instruments such as bank notes, cheques, bill and other forms which take the place of money and circulate as a … In words of M.Greener: Paper money means documents with a price stated on them but having no value in them. Although paper money might seem inconvenient in the modern world, keeping a few bucks in your wallet can be useful. Reply Delete It is easily and quickly increased; the printing press is more expeditious than the mine, smelter, and mint.