Blockchain technology allows for making transactions and recording transactions much simpler and easier.
What is missing is the safety net assuring that people's money are safe.
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Bottom line of those two things...
A bank can use the blockchain internally to make it's processes much cheaper. And it has the consumer trust and insurance that people want that their money/btcs/ctcs are safe no matter what.
On the other hand bitcoin... has the same blockchain technology, but only really nerds like us in here feel somewhat capable of keeping wealth in bitcoin... normal people would run screaming away if they understood the troubles of keeping bitcoins safe themselves...
So - for the average consumer.... citicoin might have a huge advantage right now...
Except for people who use bitcoin as a protest against the federal system etc instead of for its efficiency properties.
Bitcoin needs to quickly come up with better security measures for individuals... that is basically the interface between the currency blockchain and the consumer.... just like with the internet and many other things we had the technology first, but it did not at all take off until the interface was userfriendly enough...
Let's go.... get that sorted.... so that bitcoin has a chance...
There is no shortage of bitcoin startups attempting to solve these problems. My question is why we are not seeing quicker adoption. Merchant processors, etc. need to be hiring more and better sales people. The market is wide open.
Because people hesitate to put serious money into bitcoin because they cannot keep them safe. For now many see it as a very interesting thing... that they unfortunately only dare move toy money into because of the personal security issues.
The day someone solves security... we will see a massive change in uptake and adoption.
On the other hand, until we solve the security issues, we should not wish for general adoption because the horror stories of grand mothers and janitors etc losing their life saving will be all over the media.....
it would be a night mare. Bitcoin is not at all ready for mass adoption when it does not provide a way to keep bitcoin easily safe.
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I think bitcoin has a first mover advantage in a market that is likely a winner takes all market. There might be a support currency or two, but not even that is certain.
Does bitcoin have sustainable competitive advantage? No, not yet. The personal security challenge is the one I think will determine the race. If bitcoin solves this then in combination with the current first mover advantage.. I think bitcoin will be very very hard to beat. But if another major player solves it first (like Apple and then Android-based phones solved the user interface first for phones and thus all but put the smart phone first movers motorola, nokia, and blackberry almost out of business) then that entity might win the market. This is the absolutely crucial challenge right now.
Very good points. Regarding security though, this has actually been solved somehow, because all the banks are offering mobile banking. Securing private key strings should be no more difficult than securing online bank accounts or credit card numbers. There is all sorts of sensitive data that is currently stored and sent across the internet securely.
I guess maybe it's the issue of decentralization. You don't have to write down your bank account password, because if all else fails and you do forget it, you can go into the bank in person to reset it. Maybe someone needs to set up a service, insured by the FDIC, which simply holds a master password for you. That way you never write it down or store it on a computer, but you can prove your identity and get it back if you forget it. The master password would give access to your encrypted keys or wallet.
