If Ecommerce and Mcommerce Are Growing, Why Are $100 Bills More Popular than Ever?

According to a new video by The Economist, $100 bills have grown substantially more popular since late 2007. The timing is significant, because that also marks the beginning of the so-called mobile commerce revolution that, along with new payment protocols and cryptocurrencies, was going to help ease reliance on paper bills and allow frictionless, electronic payments in person and on the internet to explode.

Since 1993, the use of $100 notes has risen 185 percent, while $50 notes and under have risen only 19 percent. During the same period, U.S. GDP rose 65 percent, suggesting that demand for large bills is outpacing economic growth. The Economist argues this has two implications: one, more people around the world are using large bills for high-ticket transactions; two, people are keeping their savings in cash more than they used to. In either case, the trend is not good for online payment platforms.

If you look at mobile commerce giants like Square, which is set to reach $1 billion in sales this year, it would seem that electronic payments are taking over.

Buzz around startups like Airbnb and Uber, which make real-world transactions possible without any plastic or paper at all, has got futurists, economists, and techies frothing at the mouth about a brave new world where cash is outdated. News that young people hate cash would also make you think that, in reality, paper dollars are going the way of the dodo.

That’s why The Economist’s dose of reality is so important. It suggests that greater uncertainty, growing distrust of banks and electronic platforms, and the value of U.S. greenbacks in criminal transactions is on the rise.

No matter how many headlines Bitcoin and Silk Road may get, the big action still involves big suitcases loaded full of Benjamins.