Why Bitcoin May Not Takeover the World

The future probably won’t be overrun by crypto payments - but investing in crypto might still be the money-making opportunity of a lifetime for gen-z and millennials.

(Not intended to be investment advice. Please conduct your own due diligence before investing in volatile assets such as cryptocurrency.)

In the past year alone, Bitcoin’s value has grown over a whopping 780%. It has received massive support from investors like Elon Musk, and institutional investors have begun dumping billions of dollars into the coin.

Its massive uptick in value has left people questioning whether Bitcoin’s value will ever truly reach a point where it can represent a proper, genuine currency around the world.

Most analysts agree that if it were to represent a main store of value globally, much like gold, Bitcoin’s price would reach a price of around $500,000.

There are a few roadblocks that may prevent this massive 9x price increase from happening.

First: Government Intervention

Around the world, multiple nations have publicly opposed the spread and growth of cryptocurrencies.

A growing number of western nations like the United States are looking to implement absurdly high taxes on capital gains in the cryptocurrency market. In fact, reports indicate that Treasury Secretary Janet Yellen is proposing an 80% tax on crypto gains.

Some countries have even chosen to outright ban trading in the crypto market. Nations such as Turkey, India, and Bolivia have completely stopped all trading of cryptocurrencies in their country.

Without governments’ support, cryptocurrencies lose a major player in their potential worldwide adoption.

Additionally, a major nation investing in Bitcoin would have massive effects on its price and likely cause a ripple effect of other countries investing in crypto tokens.

Second: Digital Cash

Despite countless scares and recessions, the dollar has reigned supreme over the international financial system for the past century. Although crypto bulls suggest that once institutional investors got involved, a bitcoin-run financial system became inevitable, this could not be farther from the truth.

In fact, the future is already here, and its implementation is growing at an alarming rate.

Since it seems likely that physical cash may be on its way out, multiple companies have jumped on this opportunity with systems such as Apple Pay, Google Pay, and other innovations on digital payment throughout the fintech industry.

Apple Pay alone now supports over 500 million users after an explosive 50% growth in 2020. Systems that promote wireless, contactless payment seem to be on the uptrend in today’s market.

Additionally, apps such as Venmo, Paypal, and Cashapp have seen significant growth in the past 2–3 years and will inevitably have some role in the future of consumer payment.

The point is, companies’ recent innovations in the fintech industry make it seem likely that the dollar and other mainstream currencies will still hold a large part in the future of consumerism.

Although possible, it seems unlikely that Bitcoin will completely take over the dollar as the global reserve currency or even reach the market cap of gold.

Despite this, investing in cryptocurrency remains one of the best ways for young people to make money. Different coins experience 2–3x gains almost every other week, and the market as a whole has seen unprecedented growth.

Today, we see stories of self-proclaimed “dogecoin millionaires,” people who have already made enough money to retire from the meteoric rise of a meme known as dogecoin.

However, certain coins house different applications ranging from decentralized cloud computing, operating systems, and financial technology. Specifically, programs like Ethereum which have functions that are not confined to that of just being a currency likely have a large part in our future.

Ethereum’s primary function is as a decentralized operating system acting as a platform for developers to build applications and software on top of. The main advantages which Ethereum and its other blockchain counterparts hold over the current industry include their security, autonomy, and seamless integration.

These programs seem to have a huge propensity for growth in the next 10–20 years. Ethereum has seen a growth of 2000% in the past year (20x!!!), far surpassing that of Bitcoin.

Investing in these tokens may prove to return a much greater profit for investors who are willing to hold for the coming years.

Especially if there is a large pullback in the crypto market, which many experts predict will happen sooner rather than later, investing in these coins may turn out to be the best investment decision in many people’s lifetimes.

Expect the growth of cryptocurrency to create thousands of millionaires within the next decade, and do not be the person who gets left out of this historic bull run.

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