Hey everyone!
Breaking news today, Visa becomes the first major payments network to settle transactions in a USD coin (USDC).
Here’s the article -> https://www.businesswire.com
Why is this so important?
1) VISA IS USING CRYPTO TO SETTLE TRANSACTIONS.
Ya’ll understand how big Visa is right?
When’s the last time you actually used cash?
I honestly can’t remember.
Everything goes on my Visa.
The same is true for a large percentage of the World.
Now, instead of using DOLLARS to settle a transaction, they are using a STABLECOIN.
Now, before I lose half of you, let me just explain this like I would explain it to my grandparents.
Bitcoin (and other Cryptocurrencies like ETH) are a new system.
They don’t use the traditional banks.
It’s like the traditional banks are a RAILROAD.
And Bitcoin and ETH are operating completely off the rails, using flying cars or something.
Traditionally, it’s been quite cumbersome to get from the RAIL SYSTEM, over to the flying car system.
Money just doesn’t transfer easily between the old economy and the new economy.
Companies like Coinbase, Kraken, and the other exchanges have made HUGE progress here, obviously, but it still isn’t instantaneous and fluid.
In the Old World of Banking, companies have also tried to improve.
A good example would be CASH APP, or VENMO.
I’m pretty sure even my grandparents have those, haha!
Cash app and Venmo achieved huge success by MERGING the OLD WORLD of banking, with the NEW WORLD of instant, digital payments.
Now, you can send money to anyone INSTANTLY, across the world, for a fee.
It’s like the railroad turned into one of those crazy fast Japanese high speed trains :)
Now, Visa has taken it one step further.
They are saying, "We don’t even need to convert back and forth between the flying car economy and the train economy. We will just settle up in the flying car economy!”
Okay I’m sorry, the analogy might be breaking down :)
Basically, by allowing settlement in a CRYPTO NATIVE ASSET, that REPRESENTS the value of a dollar, (USDC) money will be able to move INSTANTLY between the OLD WORLD (Banking) and the NEW WORLD (CRYPTOCURRENCIES).
Throughout history, when money has moved faster, things have gotten DONE.
2) One wallet to rule them all.
There are other better summaries about what this Visa news means.
So I just want to skip ahead to where I think this is going, and fast.
We’ve all seen that cash is basically useless.
No one accepts it anymore.
I can’t even remember the last time I saw a penny.
And then, you have every government in the World talking about their own “digital currency.”
Now, many people have gotten scared about this, thinking it will threaten Bitcoin.
Which is hilarious, particularly considering the news today.
Do you really think that Governments are going to ban Bitcoin or ETH, when VISA is using them to settle transactions? Uhhhh…. no…..
What I see is one wallet to rule them all.
We’ve all grown up with a wallet right?
It stored your cash (or lint and buttons) and some credit cards.
Recently, mine has even ditched the physical wallet and I just have this thing attached to the back of my phone that holds my cards….
The next step is the removal of these cards entirely… which has already been happening…
Apple pay…
Samsung Pay…
Venmo…
Cash App…
Now, with this Visa news, it’s obvious that cryptocurrencies like Bitcoin and ETH are here to stay.
So, naturally, this technology will need a place to HOLD IT.
We like our traditions, we just want to bring our traditions ONLINE.
So, we will ALL have digital wallets.
It will be so normal in 5-10 years, just watch.
In this digital wallet it will be completely normal to hold….
1) Bitcoin - (Your savings account)
This money seems to keep going UP in value, might as well store your wealth here.
2) Digital Dollars (or Yen or Euro’s or whatever you use daily)
These will be used to spend money on coffee, or whatever you want to buy.
I’m still not sold on any other cryptocurrencies, so I’ll just leave it at those two.
The crazy thing is, once everything is on a digital wallet, it DEMONSTRATES the use-fullness and power of Bitcoin even more….
Right now, many people don’t understand Bitcoin simply because it’s “too digital.”
“Well, where’s my money?” is a question I still get a lot when trying to explain it.
Once ALL your money is digital, it will be OBVIOUS that the only difference between the two is the MONETARY POLICY behind them.
It becomes OBVIOUS that you would want to SAVE in the DECENTRALIZED money that can’t be printed.
It becomes even more obvious that the other money that is being printed like crazy is not equal, not even close, and should only be used for spending.
—————
I feel like I rambled a little bit today, but hopefully this helped.
This is huge news, it really is.
Visa might as well have announced that they were buying or using Bitcoin directly, because that’s how big it is for the Bitcoin ecosystem.
In 5 years, we will all look back and think that it was funny that people didn’t understand Bitcoin.
When Visa and other giants get in, they FORCE society to understand that the World of Crypto and digital finance isn’t going away, and they need to get educated.
If you would like to stay educated, you should subscribe.
See you subscribers tomorrow.
Kale
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