Bitcoin, a Haircut, and the Future of Finance

With Bitcoin in the throes of a dismal bear market, the light at the end of the tunnel is growing dim. Cryptocurrency, even in its current state, is gaining ground in the public eye. Most people were unable to even identify what Bitcoin was even was five years ago. It is now on the verge of becoming a household name. (If it isn’t already.) For example, the tweet below contains a parody clip that aired on national television in Sweden of a crypto enthusiast at the hairdresser.

From Swedish national news television yesterday (main news show, 1M+ daily viewers):

Narrator: "Eric Wall is going to the hairdresser – and is paying with bitcoin." pic.twitter.com/GzJ3jqipNr

— Eric Wall (@ercwl) December 27, 2018

While the Swedish coverage portrayed an overall negative market, the greater takeaway is the large-scale media outlet coverage in a country where Bitcoin and cryptocurrency actually could see widespread usage nationally.

Crossing every border

Developed as a decentralized alternative to fiat money, Bitcoin actually has the potential for international, borderless adoption. Because it is not inextricably tied to a government or regulatory body and the resultant political and social upheaval that always occurs, Bitcoin represents a frictionless payment system that transcends international control. Over the past several years, the greatest use case for Bitcoin has been as an investment tool. The ten-year-old digital currency has seen growth in value that no platform in history has experienced in such a short time period, going from fractions of a penny to nearly $20k USD since its 2009 inception. Bitcoin does make a great investment, despite an honestly-earned reputation of leaning heavily toward chaos and volatility. The crypto market has attracted top engineers, thought leaders, and innovators — all disillusioned with Silicon Valley-esque technology practices and the overall culture that has come about. Wise investors are following the brains and the talent in hopes of making a fortune through crypto the way their predecessors did during the tech boom of the ‘90s. The major difference between crypto and top Silicon Valley performers such as Apple, Hotmail, Netscape, and Silicon Valley Graphics is a lack of product, or use case. Crypto and, specifically, the associated blockchain technology, holds untethered potential. The digital currency concept solves a myriad of issues international finance faces — issues that are unsolvable with fiat currency, and this is by far its greatest contribution to the world. However, in order to see mass adoption as a currency, crypto needs a valuable offering for consumers. Crypto can accomplish this in two ways.

Blockchain for the win

Option one, which is by far the quickest, is to utilize blockchain technology. Adoptions will be encouraged and almost inevitable as developers create new products and optimize existing ones. Particularly with IoT applications simultaneously achieving widespread adoption and the end of its capacity, blockchain is finding a useful niche. Blockchain provides literally limitless capacity, and thus can be used for almost anything, without the constraints of “modern” technology.

Intuitive solutions

The other option is to wait for the next generation. For kids today, a concept like blockchain and digital currency will be intuitive. Things like FaceTime, PayPal, Venmo, and social media in general are commonplace. They are the mechanical pencils and push button phones of this generation. While 90 percent of adults today took classes, seminars, and otherwise struggled to find their place in this digital age, for our children, it will be normal. Our children know that transactions can take place on mobile devices via Apple Pay. For our children, credit cards and FICO scores are somewhat archaic. Cash is more like a novelty. When great grandma sends a birthday card vintage USPS style with a $20 bill inside, our kids immediately hand that over so that a commiserate amount can be deposited into one of their online payment accounts. Even if crypto sinks beyond the point of no return in this bear market, the foundation has been set. The world needs automated digital payment systems, and the autonomy concept will only grow as digital tracking increases.

Convenience is key

More important than anonymity, however, is the convenience factor. Every facet of life in developed nations has become automated. Even our social lives are online, carefully cultivated and directed by the algorithms of Facebook, YouTube, Instagram, Twitter, and SnapChat. With billions of users logging on daily, this is no exaggeration. These same users are expecting the same convenience from the payment systems they utilize. Fiat banks, despite their best efforts, simply cannot keep up with the convenience factor of digital currency. The next generation will opt for the better technology and the more convenient choice. That choice will, eventually, be a blockchain option. Ironically, another Swedish newscaster is pictured in the clip below, sharing his opinions about the frivolity of the PC market. The clip is from the year 1984. https://www.youtube.com/watch?v=5i8ZN1i7xgM#action=share At this point, nobody will be surprised if crypto takes a similarly unexpected path. Think crypto is the next personal computer? Or is it a passing fad? Let us know in the comments below!