Digital Currency in 2021: What to Know

On today’s episode of the Wiser Roundtable Podcast, Casey is joined by Robert Swarthout to talk about all things digital currency. Robert is a serial tech entrepreneur and has a passion for researching and understanding digital currencies. If you are new to digital currency or missed our prior podcast with Robert, click here. Casey and Robert discuss the new changes to Bitcoin and the Taproot upgrade, Tesla buying Bitcoin, El Salvador and Bitcoin, Central Bank Digital Currency (CBDC), and reaction to Bitcoin trading.

Listen on Apple Podcasts or watch on YouTube:

SUMMARY:

Casey begins the podcast by making note that it was recorded on July 1, 2021 and Bitcoin was at about $33,000.

Bitcoin Taproot Upgrade

Bitcoin will be going through the Taproot upgrade in late 2021. This upgrade was approved and widely agreed upon in the Bitcoin community. It will improve transaction privacy and efficiency. The biggest piece of the update will be bringing smart contracts to the Bitcoin blockchain. Smart contracts are contracts in code form that execute when something happens.

Tesla Buying Bitcoin

Tesla bought $1.5 billion in Bitcoin, which drove the price up significantly, and announced they would accept Bitcoin as a payment when purchasing a car. Tesla then reversed their decision and decided not to allow Bitcoin transactions due to its energy consumption. The emotions of a billionaire tweeting are affecting Bitcoin more than it should.

El Salvador and Bitcoin

In June 2021, El Salvador named Bitcoin as an option for legal tender in their country. It cannot be required, but it must be accepted. The average person in El Salvador makes $7,000/year or $19/day. The average Bitcoin transaction is $5-$10/day. It does not seem fair for people in El Salvador to use Bitcoin, based off their average income.

Central Bank Digital Currency

Domestically, there is not a great need for a Central Bank Digital Currency (CBDC). However, there are 56 countries researching, testing, and implementing a CBDC. There are starting to be two types, a commercial CBDC and retail CBDC. Many believe having a CBDC will take away the privacy we have with physical dollars.

Reaction to Bitcoin Trading

Many companies are still waiting to hold assets in Bitcoin, because the regulation around it is still unclear. As of July 1, 2021, 4,000 financial institutions in Germany are now allowed to hold up to 20% of assets in digital currencies. The narrative around digital currency is ever-changing.

TIMESTAMPS:

5:00 Bitcoin Taproot Upgrade

8:30 Tesla Buying Bitcoin

15:30 El Salvador and Bitcoin

20:20 Central Bank Digital Currency (CBDC)

29:15 Reaction to Bitcoin Trading

LINKS:

Learn more about Casey Smith and connect with him on Twitter.

Learn more about Brad Lyons.

Learn more about Matthews Barnett.

CONNECT:

Twitter, Instagram, Facebook, LinkedIn, and YouTube.

Learn more about the Wiser Wealth Management Roundtable podcast and access previous episodes.

Recent posts

  • Inheritance Scams: How to Protect Yourself and Your Loved Ones
  • Where should I pull income in the first years of retirement?
  • The Pros and Cons of a Dividend Focused Investing Strategy
By Published On: July 7, 2021

Share This Story, Choose Your Platform!

Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). As a registered investment advisor, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment advisor’s registration.

Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.

To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.

Sign up for our newsletter!

Our latest blogs, podcasts, and educational videos delivered to your inbox weekly.