BITCOIN FUTURE vs. TRADITIONAL BANKING
Interest rates fell to 0% during the financial flop in 2008. Millennials just finishing up college found themselves in a financial mess. Earning little to no interest on their savings and paying out 25% on credit cards on top of student loans has changed the way they look at banks and lenders. Trust is big in the banking institute and millennials are starting to believe the system is rigged in favor of the financial companies. They are worried about their personal information getting hacked. The privacy of blockchain is becoming the answer they are looking for. Mistrust in the financial system is not just happening in the US it is worldwide. Will this generation be the ones that break away from the traditional banking system? Will they usher in public banking? Only time will tell, but it looks likely.
25% of wealthy millennials own some sort of cryptocurrency and numbers are showing 40-45% want to use cryptocurrency for their savings and retirement plans. This number will continue to rise as long as banks keep taking advantage of them. Blockchain is incorruptible and keeps a consistent record keeping the bank’s noses out of their business.
Over $150 billion is in a parallel economy and the the growth is unchallenged. Crypto is 7th in popularity for long-term investors which is 3 times higher than earlier generations. While Warren Buffett calls Bitcoin “a delusion”, young entrepreneur Elon Musk calls it “brilliant” and it’s safe to say younger generations put more stock into what Elon has to say than Warren.
Emerging technology takes time, as does the adoption of a new payment mechanism. For example, credit cards were first introduced in 1958 but it took 20 years to become used by everyone. Mass adoption of technology follows a curve, and currently using Bitcoin to send and receive payments involves about five steps. Those that become accustomed to using it quickly catch on, but it can be as daunting as it was to send emails back in the day until you get the hang of it.
Do you remember how many thought emails or the internet would never catch on? Probably the same percent that said telephones and motor cars would bomb.