Mark T. Williams recently wrote a negative article about Bitcoin called “Bitcoin is Not Yet Ready for the Real World” at http://dealbook.nytimes.com/2014/01/24/bitcoin-is-not-yet-ready-for-the-real-world/?_php=true&_type=blogs&_r=0
Bitcoin Not Yet Ready for Prime Time?
It is downright odd that an academic like Mark T. Williams would write an article about the real world. It’s a bit low quality for The New York Times to allow such a contradiction. Eventually, the NY Times will get wise and realize that the Bitcoin articles written by journalists and academics who lack technical knowledge are writing articles that are less than helpful.
First of all, Bitcoin is already being used in the real world, with more and more users and merchants beginning to work with the digital currency every day. Today there are more than 12 million Bitcoins in circulation worldwide, with a market capitalization of $11 billion. More than 50,000 transactions occur each day.
Bitcoin has the best reputation of all digital currencies. It’s reputation was improved after the FBI’s takedown of Silk Road proved that Bitcoin does not protect illegal operations. In fact, the permanent public ledger can be used to help deter crime. The U.S. dollar still reigns supreme for use in worldwide money laundering and other crime. Bitcoin is hardly a blip on the radar regarding crime. News reports continue almost daily about Bitcoin’s adoption by sellers of luxury cars, space flights, online retail and, this week, Las Vegas casinos.
After the enormous security breach by Target that released millions of personal records, credit cards are the object of increased scrutiny and doubt. Unlike credit cards, Bitcoin prevents the unwanted release of personal data because it contains none.
Bitcoin has risen top in use because it is the first digital currency that really works. It is more valuable than nearly every currency in the world because it is useful and rare. It’s rarity makes it extra valuable, and a tremendously successful store of value. It has proven to be an amazing asset, and one of the best performing investments in history, averaging a gain of around 2% per day for four years. That payoff helped lead to huge adoption rates and superior network effect.
Bitcoin transactions are permanent and irrevocable. They do not offer the consumer protection of credit cards, but Bitcoin offers superior value for consumers who wish to conduct transactions that are not controlled or charged by a third party. Bitcoin is therefore cheaper to use, more cost effective for merchants, and allow for cheaper products and services for consumers. Bitcoin will allow for instant electronic purchase of countless items not possible today, such as real estate transactions and other transactions where inconvenient cashiers checks and costly wire transfers were once necessary.
Bitcoin transactions fall under much of the same regulation as fiat money transactions. Bitcoin’s programming provides superior regulation in many ways, making Bitcoin a more egalitarian currency.
As the world’s largest distributed computational network, Bitcoin is based on a ledger that can be used for verification/authentication of countless items from college transcripts to real estate titles, legal documents to gold bullion. With the power to create more complex programmed transactions, Wall Street will find digital currencies to be indispensable. The future of Bitcoin involves far more than money.
Bitcoin is indeed ready for the real world. It’s use increases every day. The future of Bitcoin is extremely bright.
Bitcoin does have down sides. Read TheBitcoinBlogs.com to learn how to get the most out of Bitcoin while protecting yourself.
Corey Chambers, The Bitcoin Blogs
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