What is interesting about Bitcoin is it has been a 'proof
of concept' and the concept is now fundamentally proven. So what is
next? As with the emergence of the WWW there was this 'eye of the storm'
period when, for a while, the systems were in place and nothing much occurred. Then came the DOTCOM bubble. From the ashes today's enduring
players arose: formed and consolidated. It appeared to me that nothing
much was initially happening because nobody wanted to deal with
companies and brands they had no historical knowledge of in the
bricks-and-mortar world. Once these friendly faces emerged people went
on-line and started shopping with them and soon also with a few notable internet born
exceptions: Google, Facebook, Amazon and eBay. I recall Amazon was 'the one' - the big newcomer ground breaker.
Bitcoin has been victim of its optimistic supporters in so much as people have speculatively invested in Bitcoins whereas that is not its real purpose. It is first and foremost supposed to be a means of exchange - that is its strength. But as a means of exchange it has not started to be truly useful. I cannot see making my larger payments say from UKP to JPY is really helped by using Bitcoin as the mechanism of transfer. It needs me to hold funds as Bitcoin and sellers to want to do the same and that is a long way off. It is an unknown and subject to sharp value fluctuations.
Now if the IMF came up with a son-of-Bitcoin that was indelibly tethered to their SDR basket of currencies the day of the digital coin would happen immediately. And if every major bank offered access to the same service too: people would start doing business. This I predict is what is going to happen.
Now all that is fine and dandy but the Bitcoin has one more feature that I presume could not be the case with an IMF-SDR digital-coin which is: Bitcoin is not a fiat currency - there is a finite volume of possible Bitcoin algorithms - so Bitcoin will tend to grow in value if and when its uptake becomes more prevalent - be pro-rata deflationary with growing usage.
The people who understand this make the bulk of the speculative investors today and they have at least 'keep the wheels on the wagon' to this point in time. Bitcoin's potential growth in value yet to come is roughly (optimistically) equated to the value of all the fiat money in the world today.
Will it happen. I think not. There may be a limited volume of Bitcoin's possible to produce but there is no limit to the introduction of other technically comparable digital-coins that could share the supposed same deflationary quality (limited volume). So the idea of a limited volume is not really correct.
I predict there is a place for Bitcoin as an early market leader, an established brand, but it will be joined by a plethora of digital-coins backed by known brands and entities, including maybe even digital versions of existing national currencies, a PayPalPunt, an AmazonAmericano, an AppleSeed and the soon to be popular RothschildRenminbi. The water could become very muddy.
The only survivor could be the 'block-chain' which manages the Bitcoin records amongst other tasks too. But since the block chain is the keys to recording every financial transaction conducted I am very doubtful of its continued independence. I think the UN will claim that crown as the corner-stone to its new global tax regime. Then we can start to understand what may lay behind this anonymous experiment as has been similarly suspected of apparent 'new start' IT providers throughout the history of the digital revolution.
See also: Forming the SDR Global Monitary & Political Union
Bitcoin has been victim of its optimistic supporters in so much as people have speculatively invested in Bitcoins whereas that is not its real purpose. It is first and foremost supposed to be a means of exchange - that is its strength. But as a means of exchange it has not started to be truly useful. I cannot see making my larger payments say from UKP to JPY is really helped by using Bitcoin as the mechanism of transfer. It needs me to hold funds as Bitcoin and sellers to want to do the same and that is a long way off. It is an unknown and subject to sharp value fluctuations.
Now if the IMF came up with a son-of-Bitcoin that was indelibly tethered to their SDR basket of currencies the day of the digital coin would happen immediately. And if every major bank offered access to the same service too: people would start doing business. This I predict is what is going to happen.
Now all that is fine and dandy but the Bitcoin has one more feature that I presume could not be the case with an IMF-SDR digital-coin which is: Bitcoin is not a fiat currency - there is a finite volume of possible Bitcoin algorithms - so Bitcoin will tend to grow in value if and when its uptake becomes more prevalent - be pro-rata deflationary with growing usage.
The people who understand this make the bulk of the speculative investors today and they have at least 'keep the wheels on the wagon' to this point in time. Bitcoin's potential growth in value yet to come is roughly (optimistically) equated to the value of all the fiat money in the world today.
Will it happen. I think not. There may be a limited volume of Bitcoin's possible to produce but there is no limit to the introduction of other technically comparable digital-coins that could share the supposed same deflationary quality (limited volume). So the idea of a limited volume is not really correct.
I predict there is a place for Bitcoin as an early market leader, an established brand, but it will be joined by a plethora of digital-coins backed by known brands and entities, including maybe even digital versions of existing national currencies, a PayPalPunt, an AmazonAmericano, an AppleSeed and the soon to be popular RothschildRenminbi. The water could become very muddy.
The only survivor could be the 'block-chain' which manages the Bitcoin records amongst other tasks too. But since the block chain is the keys to recording every financial transaction conducted I am very doubtful of its continued independence. I think the UN will claim that crown as the corner-stone to its new global tax regime. Then we can start to understand what may lay behind this anonymous experiment as has been similarly suspected of apparent 'new start' IT providers throughout the history of the digital revolution.
See also: Forming the SDR Global Monitary & Political Union
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