Many people believe that Bitcoin is the greatest technological innovation since the internet. It could change the way individuals and corporations do business forever. The cryptocurrency involves no banks. It’s a digital transfer of funds without government manipulation. No central banks are placing artificial value on the currency and creating a state of inflation. It eliminates the potential fraud of credit cards. Financial transactions made with fiat currency must meet different regulations in different markets. Peer-to-peer cryptocurrency trading will reduce those problems.
Bitcoin is gaining momentum, and it may be the way of the future.
Jack Dorsey, CEO of Square and Twitter, certainly believes so. Says Dorsey, “The internet is going to have a native currency so let’s not wait for it to happen, let’s help it happen.” A single global currency could open new trading markets that are not available at this time. Dorsey sees apps as the future method of payment, and his company Square has already launched its Cash app. Since January, the app has made $34.1 million in Bitcoin transactions.
Dorsey sees cryptocurrency being used to buy a cup of coffee within 10 years, perhaps sooner. He’s unsure whether it will be Bitcoin or another cryptocurrency, but he’s betting on Bitcoin. The growth and potential of the internet is making cryptocurrency extremely viable.
Bitcoin has proven volatile thus far, and Dorsey admits more work needs to be done on the technology. Still, he owns Bitcoin and is bullish on its future possibilities. It will cause a basic shift in how global trade can be conducted, eliminating banks as the middleman for financial transactions. Especially central banks, who have been controlling economies on a worldwide basis by manipulating interest rates. Since the inception of central banks, people have been uneasy about their power to regulate economies.
No everyone agrees with Jack Dorsey, even some of his own employees. The revolutionary concept of cryptocurrency has some people uneasy. Thus far, Bitcoin only amounts to a very small portion of Square’s transactions, $200,000 in the first quarter 2018, or 5 percent of its total revenues.
Nevertheless, Dorsey is firmly invested in Bitcoin becoming the global currency of choice.
Another supporter and believer in Bitcoin is venture capitalist, Tim Draper, who sees Bitcoin at $250,000 by 2022. He anticipates that cryptocurrency apps will replace credit cards to make everyday purchases. Perhaps more importantly, Mr. Draper predicts that there will be a tremendous effect on fiat currency. He points out that there is approximately $80 trillion in fiat currency globally. If cryptocurrency such as Bitcoin can grow to $100 trillion, it could decrease fiat currency to $30 trillion.
Research is still being done. But if investors such as Dorsey and Draper are correct, Bitcoin does indeed have the potential to restructure global financial transactions.