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Bill Gates: Bitcoin Is 'Better Than Currency'

78 pointsby outrightfreeover 10 years ago

5 comments

danbrucover 10 years ago
At the moment Bitcoin is not better than other currencies because it is a layer on top of existing currencies and their related infrastructure. Because almost nobody accepts Bitcoins there is a constant need to convert back and forth between Bitcoins and other currencies. While I really liked the idea of Bitcoin when it came into existence I now tend to believe that Bitcoin will die slowly because it does not solve any important problem for the average person. Anonymity is not important for almost all transactions. Relying on banks is not an issue for most people. Transaction are executed fast enough and are cheap enough in most cases. There is just not enough incentive to adopt Bitcoin.
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bobbyhotpocketsover 10 years ago
I feel like bitcoin supporters, in talking about things like the convenience and simplicity of transactions, while not incorrect, are missing the critical issues that are going to determine bitcoin&#x27;s fate.<p>If we look at bitcoin vs. US banknotes, a paypal balance, a pile of gold bars in a bunker, whatever, if we&#x27;re looking at how bitcoin performs vs. all these things at the moment in time when we&#x27;re transferring them to someone else, bitcoin is superior in every case. The problem is this window is brief. Non-transactional moments in the life of bitcoin is where the problem lies.<p>Looking at historic pricing of bitcoin, and seeing a peak at a little over $1k, what does the future price need to be for people to feel comfortable receiving bitcoins and just holding onto and forgetting about them, in the same way they could with, say, 100 bucks in their wallet? Being divisible down to 8 decimal places might rationally address the issue of how to spend something where the base unit costs as much as an Xbox. But even if bitcoin could somehow split at something like 300 or 500:1, to make a bitcoin roughly equal to a US dollar or a Euro, does that really solve the problem of perception? The historical chart, with the accelerated volume and insane swings in both directions, might never recede from the mind of the public.<p>I just have a hard time understanding what a path to acceptance as a legitimate currency looks like. Years of price stability would be a great start. But the beginning of that period hasn&#x27;t even begun. In the past month alone, the price has moved by 30%, and daily volatility regularly sees the price change by 5%. I can sort of squint my eyes and imagine scenarios where bitcoin, the currency, wins. What I can&#x27;t see is how bitcoin, the speculative investment, also does well. That these two things are at odds leads to other issues, too, but this is already unnecessarily long.
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hnnewguyover 10 years ago
<i>“Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient.”</i><p>Yes, bitcoin has some specific traits that are superior to carrying wads of cash. Much like many other forms of digital exchange. This is not really news.
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fdsaryover 10 years ago
I mean, anyone who ever used bitcoin will see how it&#x27;s clearly superior than going to a bank office, getting an account, waiting days for it all to work out. And then transactions take a night (at least in the countries I&#x27;ve lived in).<p>Bitcoin transactions show up instantly. There&#x27;s no need to a trusted middle man. Anyone I show it to is swooned, because it&#x27;s simply really really cool.
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zwegnerover 10 years ago
I tend to shudder when people talk about bitcoin being &quot;cheap&quot;. There&#x27;s a massive amount of energy wasted to maintain the public ledger. It became much more clear to me how this impacts the cost of transacting bitcoins after reading this article: <a href="http://letstalkbitcoin.com/blog/post/how-many-bitcoins-does-it-cost-to-maintain-the-bitcoin-network" rel="nofollow">http:&#x2F;&#x2F;letstalkbitcoin.com&#x2F;blog&#x2F;post&#x2F;how-many-bitcoins-does-...</a><p>...and particularly after seeing this graph: <a href="https://blockchain.info/charts/cost-per-transaction" rel="nofollow">https:&#x2F;&#x2F;blockchain.info&#x2F;charts&#x2F;cost-per-transaction</a><p>I&#x27;m more excited about proof-of-stake, as there isn&#x27;t this arms race to throw more and more computing power to generate bitcoins. I&#x27;m not sure why it hasn&#x27;t seen more adoption, but I will admit that I don&#x27;t pay a lot of attention to the cryptocurrency space...
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