The Passive Dollar

Feed Your Wallet

Bitcoin: The Future of Currency

The cryptocurrency market is highly volatile and you should never invest more than you can afford to lose. 

Did you know you can buy a condo in Dubai with Bitcoin? To be specific, it only costs 30 Bitcoin. that’s around $134,000 as I write this. Every week we hear news about the soaring price of Bitcoin and cryptocurrency in general. Most don’t understand it, don’t give a damn for it, or they think it’s a bubble (which could very well be true). Yet, Bitcoin and other forms of cryptocurrency are here to stay for the long haul.

What is Bitcoin?

The purpose of Bitcoin and cryptocurrency, in general, is to create a currency that will transfer cheaply and quickly, with no middle-man. Currently, Bitcoin allows people to do this but it’s still in its infant stages.

When you want to write a check or transfer funds to a family member in another country you have to use a bank or some type of transfer service. This can be slow (as in days!) and there are fees. Western Union can cost $15 a check and if the funds are transferring to another currency, there are foreign exchange fees to be accounted for.

Bitcoin solves all of this. It is very cheap to transfer Bitcoin from one person to another and the process takes only seconds. While Bitcoin is used for private use, there are other cryptocurrencies that are trying to work their way into financial institutions like banks and governments. They are making good progress as well.

These cryptocurrencies, such as Ripple, are making great progress to being accepted as a legitimate form of currency with banks and governments across the world.

You may be asking yourself, “Why would a bank consider cryptocurrency as a real currency?” The answer is simple; when a bank is making millions of transactions, it makes sense to use something cheaper like a cryptocurrency, which is also faster. The price of transferring funds using cryptocurrency is very, very low. Much lower than let’s say, Visa, who may charge up to 4%. This can save banks millions and millions of dollars in transaction costs.

As cryptocurrencies gain more legitimacy and the market keeps expanding, more opportunities will arise for this new digital currency.

Should I invest?

Investing in cryptocurrencies is like investing in a startup. It’s not about buying at the lows and selling at the highs. It’s about creating something that will last forever and allow people to easily transfer money without the use of a bank. Little fees, little hassle. Investing in Bitcoin is a long-term investment. If you believe in something like this and are willing to take a risk, go for it.

If you’re interested in buying Bitcoin, read my article HERE.

How Will Bitcoin Change The Future?

Bitcoin isn’t the only cryptocurrency. As days go on, more and more coins are being created by companies. Some coins are trying to get into online gaming, like Fantasy Football, others are trying to be used by other governments. More and more companies are accepting cryptocurrencies such as Bitcoin and Litecoin as a form of payment. There are now Bitcoin ATM’s in cities where you can buy cryptocurrencies.

With all of these variables combined, we are looking for a radical change in the multi-trillion dollar business that is the financial landscape. Large banks such as Chase are working on ways to make cryptocurrencies irrelevant or create their own. The thing is, Bitcoin uses blockchain, which makes Bitcoin uncontrollable.

As Bitcoin keeps on growing, there will be more options to use Bitcoin to purchase items on websites and in stores. Also, transferring money to your relative in another country using Bitcoin is super simple. It’s probably too volatile right now to use it regularly, but as time passes, it will become less volatile just like most commodities.

Venezuelan currency has been in a massive inflation spiral lately and their currency is close to having no value at all. Many citizens are using Bitcoin for funds as it is currently retaining its value. Far more than the Venezuelan bolivar.

These are all just a few options of how Bitcoin and cryptocurrencies, in general, are changing the financial climate.

Will you invest in Bitcoin or do you think it’s a scam?

 

 

 

 

 

About Brandon

4 Replies

  1. Before, I haven’t any idea why people engage in BTC. I said it was only a false hope until one friend of mine encouraged me to try it myself. I heard the good news, people’s success, mining, transaction and payment, personal used. Those are the capacity of BTC. I just WOW! Future currency? Why not? So I let myself buy bitcoin and enjoy it.

    1. Thanks Anna. It is still very risky to invest. Many speculations on both sides 🙂

  2. Great article! This will help people to decide about Bitcoin. Great job Brandon 🙂

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