It seems that bitcoin will prosper so long as it is used. The issue I see is the collapse of the dollar. If the internet survives such a potential collapse, then of course bitcoin would be royalty if not king (as it requires a functioning internet).
If the internet does not survive, bitcoin ceases to function, no? In such a case, silver and gold are still relevant.
Topic: 10 reasons for bitcoin to prosper - page 4. (Read 7069 times)
And the only reason why not to, is that it can be to risky to invest and depend on it. There are not enough ppl who will sell a house for X amount of bitcoins and risk losing a good % due to price fluctuation.
It is happening... I just saw a guy claimed that he sold one of his house for 300k dollar and use all that money bought bitcoin in July, now he already doubled his investment
Oh man, that is one of a risk...
And the only reason why not to, is that it can be to risky to invest and depend on it. There are not enough ppl who will sell a house for X amount of bitcoins and risk losing a good % due to price fluctuation.
It is happening... I just saw a guy claimed that he sold one of his house for 300k dollar and use all that money bought bitcoin in July, now he already doubled his investment
What do you is the main factor which allows us to go mainstream with bitcoin?
Certainly has good potential. Reminds me of the Internet in 1995. Nobody I knew at that time could foresee the full extent of change that was at hand. Maybe this time it is the same in currency? Maybe. Maybe not. Only time will tell but it certainly is an interesting ride - and what makes life living more than an interesting ride?
And the only reason why not to, is that it can be to risky to invest and depend on it. There are not enough ppl who will sell a house for X amount of bitcoins and risk losing a good % due to price fluctuation.
Well not 10 but 11 reasons, round numbers seem to look better))))
All of the following is my humble opinion about bitcoin future from the marketing point of view.
So here we go:
1) It’s New!
Bitcoin is a new and fresh thing. And there is always a factor of interest for something totally new and just gaining popularity. Whether this wave will be short or long, the main thing it exists.
2) Freedom
There is always demand for a way to trade free and bitcoin is the only way today to do it. (altcoins still very small and underdeveloped). FIA currencies hold so many limitation and borders , they hardly could be called a free way for trading today.
3) Privacy
This is actually very big and complex issue. Privacy is needed not only for selling illegal stuff, but needed by general public as well. Whether it is psychologically motivated or legit need for fund safety. Principals of Secrecy and sanctity of property rights were untouchable but not anymore. Cyprus was just a warm-up, test for the incoming actual attack on property rights all around the world.
Just recently ended long respected era of bank secrecy in swiss banks
http://en-maktoob.news.yahoo.com/swiss-sign-last-rites-banking-secrecy-oecd-100647333.html
4) Safety
Today banks are not actually safe way to hold to your money anymore. Banking crisis, high possibility of money theft, shifts in personal rights politics and many more. Bank can freeze your account or even take away a part of your money like they did all over the world. (again Cyprus is the most graphic example). Bitcoin gives you today maybe the highest level of money safety and freedom.
Bitcoin is the first structure that gains its safety not by political or cultural decisions but from great open source code. This is actually kind of “New Era” stuff.
5) Market stats
Whatever the reasons are, crypto-currency market is growing, and it’s a fact. So the tendency will continue for some time. People believe in what they see so stats are not only “conclusion” but also a “reason”.
You can look here for number of transactions growth stats
http://blockchain.info/en/charts/n-transactions-excluding-popular?timespan=all&showDataPoints=false&daysAverageString=1&show_header=true&scale=0&address=
And here for market capitalization
http://blockchain.info/charts/market-cap?timespan=1year&showDataPoints=false&daysAverageString=1&show_header=true&scale=0&address=
6) Black market factor
It is all about reasons 2, 3 and 4, but what I am trying to say here is little bit different. Total black market capacity of the world is more than 2 trillion US dollars. And BM actually needs systems like bitcoin. So we will witness a big shift towards bitcoin with those groups, I think.
7) Limited emission and mining
As you know bitcoin code limits daily emission of coins into the network, so there is no regulatory or any other softening factor to limit deficit when it hits the market. So significant deflation kicks in. And though mining difficulty does not have direct effect on BTC price, it still kind of does, as bitcoin quantity is limited in the end.
8 ) Herd instinct
Even not very good or valuable products can witness the herd instinct effect. When everyone uses twitter(service with very limited functionality), a lot of people kind of subconsciously want to use it too. In some cases you will even have to follow the public in case if you need to reach that group of people. The effect is also witnessed at vogue waves. So the more people will use bitcoin, the more new ones will follow them. So it can kind of snowball at some point.
9) Geek effect
Geeks are a very big group of people and bitcoin is as cutting edge as it gets. So it is match made in heaven. We already can see a huge support from fans of new technology. For some it’s “just for fun”, for others it’s lifestyle or even ideology.
10) Free market gap
1,5 billion dollar “capitalization” today is a drop at the sea. There is a huge market for that kind of financial instrument and there is no actual competition. Altcoins are trailing behind and IT corporations are afraid to start a new currency.
11) Hidden functions
Well, not actually hidden, but not used. Bitcoin code gives us much more financial instruments then most people even know. Like futures trading, betting, sharing info, securing links, contract registration and so much more. As new bitcoin functions will be discovered by the public, more people will get involved.
PS
I know that some reasons are part of another and my “factors” are from very different fields of marketing. I am not trying to pass the test! I am trying to make a point.
All of the following is my humble opinion about bitcoin future from the marketing point of view.
So here we go:
1) It’s New!
Bitcoin is a new and fresh thing. And there is always a factor of interest for something totally new and just gaining popularity. Whether this wave will be short or long, the main thing it exists.
2) Freedom
There is always demand for a way to trade free and bitcoin is the only way today to do it. (altcoins still very small and underdeveloped). FIA currencies hold so many limitation and borders , they hardly could be called a free way for trading today.
3) Privacy
This is actually very big and complex issue. Privacy is needed not only for selling illegal stuff, but needed by general public as well. Whether it is psychologically motivated or legit need for fund safety. Principals of Secrecy and sanctity of property rights were untouchable but not anymore. Cyprus was just a warm-up, test for the incoming actual attack on property rights all around the world.
Just recently ended long respected era of bank secrecy in swiss banks
http://en-maktoob.news.yahoo.com/swiss-sign-last-rites-banking-secrecy-oecd-100647333.html
4) Safety
Today banks are not actually safe way to hold to your money anymore. Banking crisis, high possibility of money theft, shifts in personal rights politics and many more. Bank can freeze your account or even take away a part of your money like they did all over the world. (again Cyprus is the most graphic example). Bitcoin gives you today maybe the highest level of money safety and freedom.
Bitcoin is the first structure that gains its safety not by political or cultural decisions but from great open source code. This is actually kind of “New Era” stuff.
5) Market stats
Whatever the reasons are, crypto-currency market is growing, and it’s a fact. So the tendency will continue for some time. People believe in what they see so stats are not only “conclusion” but also a “reason”.
You can look here for number of transactions growth stats
http://blockchain.info/en/charts/n-transactions-excluding-popular?timespan=all&showDataPoints=false&daysAverageString=1&show_header=true&scale=0&address=
And here for market capitalization
http://blockchain.info/charts/market-cap?timespan=1year&showDataPoints=false&daysAverageString=1&show_header=true&scale=0&address=
6) Black market factor
It is all about reasons 2, 3 and 4, but what I am trying to say here is little bit different. Total black market capacity of the world is more than 2 trillion US dollars. And BM actually needs systems like bitcoin. So we will witness a big shift towards bitcoin with those groups, I think.
7) Limited emission and mining
As you know bitcoin code limits daily emission of coins into the network, so there is no regulatory or any other softening factor to limit deficit when it hits the market. So significant deflation kicks in. And though mining difficulty does not have direct effect on BTC price, it still kind of does, as bitcoin quantity is limited in the end.
8 ) Herd instinct
Even not very good or valuable products can witness the herd instinct effect. When everyone uses twitter(service with very limited functionality), a lot of people kind of subconsciously want to use it too. In some cases you will even have to follow the public in case if you need to reach that group of people. The effect is also witnessed at vogue waves. So the more people will use bitcoin, the more new ones will follow them. So it can kind of snowball at some point.
9) Geek effect
Geeks are a very big group of people and bitcoin is as cutting edge as it gets. So it is match made in heaven. We already can see a huge support from fans of new technology. For some it’s “just for fun”, for others it’s lifestyle or even ideology.
10) Free market gap
1,5 billion dollar “capitalization” today is a drop at the sea. There is a huge market for that kind of financial instrument and there is no actual competition. Altcoins are trailing behind and IT corporations are afraid to start a new currency.
11) Hidden functions
Well, not actually hidden, but not used. Bitcoin code gives us much more financial instruments then most people even know. Like futures trading, betting, sharing info, securing links, contract registration and so much more. As new bitcoin functions will be discovered by the public, more people will get involved.
PS
I know that some reasons are part of another and my “factors” are from very different fields of marketing. I am not trying to pass the test! I am trying to make a point.
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