- January 21, 2022
While older generations inarguably prefer fiat currency, young people invest in crypto at an astounding rate. Moreover, 2/3 of millennials cite Bitcoin as a more attractive option than government-issued currency. Gen Z also has its love affair with Bitcoin because of its convenience, accessibility, and security. Does this make Bitcoin the future of currency and finance?
Since these young investors will drive the global economy in the coming years, it’s reasonable to assume that digital currency will only become more popular. But is Bitcoin the future of money? Read on to learn what the experts have to say.
Bitcoin By the Numbers
Bitcoin is the most popular form of digital currency out there. There are 21 million Bitcoins out there that people could potentially mine. New Bitcoins are added to the supply approximately every 10 minutes. However, while the number of Bitcoins minted decreases by 50% every four years, 21 million Bitcoins are unlikely to be issued.
These Bitcoins exist on a digital ledger called the blockchain. When a transaction is made, miners document and seal the transaction within the ledger. This seal prevents the same person from double-spending the same Bitcoins.
How Much Is a Bitcoin Worth?
A single Bitcoin is worth about USD 45,886 as of March 2022. Most investors do not purchase or own a whole Bitcoin but rather a fraction of one. For example, if you owned 0.01 Bitcoin, you could sell this for about $458 at this value.
This number is constantly fluctuating, so it may be worth slightly less tomorrow or worth much more in 2 weeks. However, its overall value is on a fairly steady incline. So if the price dips for a week or so, it will still come back stronger in a year.
Do Bitcoins Increase in Value Over Time?
The global cryptocurrency market is currently about $1.63 billion. By 2025, experts estimate it will be worth about $2.73 billion. (Giving BTC a yearly growth rate of approximately $13.8%.)
Consider an investor that purchases $100 worth of Bitcoin today. Next year at this same time, they will have $113.80. In 10 years, they will have made $130 simply by waiting for its value to increase while in their eWallet.
This is significantly more money than you would make if you let fiat currency compound interest. If you put $100 in a bank, you may only find yourself with an additional 6 cents at the end of a year (and 60 cents at the end of 10 years). Which is basically nothing, so why not let Bitcoin sit there and compound value instead?
$100 is also a reasonably small investment. If you want to turn an even greater profit, consider investing $1000. Economists are confident in Bitcoin’s power to grow over time, so it’s a pretty safe and low-risk purchase.
Is Bitcoin the Future of Money?
Bitcoin’s rising popularity and lucrative growth rates lend well to it being the future of money. However, to truly understand why this is the case, we must analyze trends that showcase its proliferation.
- Bitcoin hit a $1 trillion market value for the first time
- The first futures-based Bitcoin ETF was launched to speculate on the future prices of these assets in real-time
- 90% of the total Bitcoin supply was mined and put into circulation
- Bitcoin’s hash rate hit an all-time high of 203.5 exahashes per second
All of these statistics show that society is moving towards Bitcoin. Additionally, since 16% of Americans have invested in, traded, or used crypto, there has been a tremendous spike in the public interest.
Expert Projections for Bitcoin Proliferation
As with everything, experts express division on Bitcoin’s role in the national and global economies. For example, famed economist Mohamed El-Erian states that while Bitcoin is “very disruptive” to the circulation of fiat currency, he does not think that it will ever become a global currency to rival the US dollar.
He notes that he believes it will always exist in the financial ecosystem. El-Erain thinks that there is no way to regulate it out of existence, meaning that it’s here to stay regardless of whether it’s the sole future of money.
However, many other leading experts do believe that Bitcoin will eventually overtake the dollar.
Cornell economist Eswar S. Prasad states that cryptocurrency isn’t going anywhere because of shifting public attitudes. The digital payments that proliferated with Covid restrictions and concerns led to more people accepting alternatives to physical cash. As a result, Bitcoin is one of the most widespread.
He believes that consumers and businesses find digital payments a secure and no-frills alternative to cash payments. Though pandemic-related fears will eventually die down, people will continue to crave this simplicity and convenience.
Jack Dorsey, the CEO of payments company Square, has also recently proclaimed that Bitcoin is likely to replace the dollar. Furthermore, he believes that Bitcoin will also eventually economically unite the US and the world.
This statement also spurred change since the BTC market value surged 5% almost immediately after he made the statement. If experts believe in Bitcoin, it’s more likely to succeed. Since experts do believe in Bitcoin, it probably will.
New Bitcoin Technologies
In addition to spending Bitcoin online, it’s becoming a more widely accepted payment method at brick-and-mortar retailers. As a result, you will find many retail venues that allow you to swipe your eWallet’s QR code rather than a debit card. This option will likely increase in 2022 as demand for crypto options rises.
Even venues that don’t directly accept crypto are beginning to accept Bitcoin payments indirectly. For example, major credit card companies like Visa and Mastercard create debit cards that link to crypto accounts rather than the bank. You can swipe these cards at any location that accepts the carrier, pay with Bitcoin, and allow the recipient to receive the payment in USD.
These technologies are working to make Bitcoin more widespread in the real world. People are likely to begin using these payment methods simply because it’s easy and they know how to do so. They won’t need to learn how to use new technology but instead can swipe this new kind of debit card.
The Benefits of Bitcoin
All three of these experts note the importance of Bitcoin regardless of whether or not they think it will overtake the dollar. But what do these economic leaders see in Bitcoin? It’s likely that they primarily see a currency that the people like for good reasons.
Bitcoin is 100% secure and untraceable. Its decentralization ensures that the seller won’t get any sensitive information about you when you make a payment. Therefore, people can feel safe from having their personal or financial details compromised after purchasing.
In addition to avoiding giving your information to the seller, you also keep it offline. It won’t be stored on your computer after payment or on a network after completing a transaction. Even if you trust the seller, this means that hackers can’t get ahold of your information in the event of a data breach.
Bitcoin is also extremely convenient in addition to being secure. All you need to do is link your ByteWallet to the website where you’re making a purchase. This process is straightforward so that you can begin making immediate purchases.
Accessing Bitcoin is also an extremely secure process assuming that you use a Bitcoin ATM.
Claiming Your Share of the Crypto Empire
There are a lot of different ways that people can access Bitcoin. For example, some people choose to buy them via online exchanges that pair a buyer and seller together. This pairing allows for an immediate transaction to take place anonymously.
As you might imagine, this comes with a plethora of problems. First, you don’t get to know whom you bought Bitcoins from, so you have no control over the sale. Many people dislike this lack of power because they’re more likely to be jilted (and won’t have anyone to contact if they are).
Additionally, even if you sell to someone whose identity you know, all online transactions take time. You likely won’t see the Bitcoin you purchased in your eWallet for up to a week. That being said, you won’t be able to use it during this timeframe.
You also won’t know whether or not you’ve been jilted until well after the fact. There may be nothing that you can do about it at that point.
Bitcoin ATMs are the solution to all of these problems.
These kiosks look and function just like regular ATMs but trade in Bitcoin rather than cash. You can find them in banks, grocery stores, gas stations, and drugstores all across the US. They’re also effortless to find, assuming that you use ByteFederal’s Bitcoin machine locator.
Using Bitcoin ATMs
Using a Bitcoin ATM is a simple process. Once you find the kiosk nearest to you, you’ll need to grab:
- Your photo ID (a driver’s license is perfect)
- The amount of cash that you’re looking to convert to Bitcoin
- The QR code to your Bitcoin eWallet (either on your Smartphone screen or on a printed sheet of paper)
Head over to the kiosk and scan your ID. This step verifies your identity to keep your eWallet secure. A user won’t be allowed to access its contents unless the scanned ID matches the person’s identity that the eWallet is already linked to.
Once the machine verifies your identity, you’ll be prompted to scan the QR code to your crypto eWallet. This process will take a few seconds, and you’ll immediately link the machine to your account. You then can insert cash into the machine and wait for the transaction to go through.
After you buy Bitcoin, it will usually take a few minutes to appear in your eWallet. So please wait until you can see the crypto you purchased and ensure that it’s the correct amount. Once that’s done, you can log out of the machine.
How Do Bitcoin ATMs Help Crypto Become the Future of Money?
Bitcoin ATMs are a more secure way for people to access Bitcoin, so even those concerned about online safety can buy it. In addition, once you log off the machine, it will automatically delete anything you have scanned into its system. So you don’t need to worry about it being compromised while on the device.
Bitcoin ATMs differ from online transactions. For example, you wouldn’t need to make the transaction over a network. As a result, people don’t need to worry about compromising their information when sending over fiat payments in exchange for Bitcoin. Thus, opening the door for more people to begin exchanging in Bitcoin.
This increase in popularity is also aided by Bitcoin ATMs being so accessible. Most Americans will have one very close by in a highly convenient location. They can simply buy Bitcoin while shopping or get gas for their cars.
Bitcoin ATMs also make it easier to sell Bitcoin since transactions go both ways. Once you wait for your Bitcoin’s value to increase, you can sell it back to the ATM and turn a profit.
Start Accessing Bitcoin Today
So, is Bitcoin the future of money?
While fiat currency isn’t going anywhere, Bitcoin is undoubtedly also here to stay. As a result, people will make informed choices regarding investment as the value of Bitcoin is on the rise. Therefore, digital dollars will likely continue to explode in popularity over the coming years.
Now that you know about Bitcoin market expansion and trends, it’s time to get started. Contact Bytefederal with any remaining questions about Bitcoin, crypto ATMs, and how you can invest in digital currency today.