Topic: "Good news" vs. price - page 2. (Read 2773 times)
I think international money transfer and offshore banking are two areas where it already beats the established competition hands down.
Let's ponder a question: what kind of news is good news for the price?
Lately there's been a lot of good news of the "Expedia accepts Bitcoin" and "New bitcoin ETF coming" variety, yet a rally is decidedly not underway. Why would this be?
Maybe it's relevant that while these new developments may increase Bitcoin's utility to existing holders, or provide avenues for new speculators, they bring little to the table to increase adoption of Bitcoin in the short to medium term. Competing as a payment method for traditional online commerce is a tough proposition for Bitcoin: Niche cases apart, credit cards work just fine for most consumers. Merchants would have to systematically offer high discounts for their customers to deal with the added hassle and high volatility of buying BTC just to pay for their purchases.
As for increased investor demand, that can't supplant fundamental growth of the ecosystem. New funds etc. may end up running the price up again, but if Bitcoin doesn't gather true utility for non-speculative demand to catch up, it's a bubble waiting to happen at best.
The most ambitious promise of Bitcoin, IMO, is to introduce sound money into commerce, reducing the deleterious effects of debt bubbles. It's an ambitious goal to say the least, but I don't see a noble idea driving consumer adoption. Most people do not voluntarily inconvenience themselves for the future greater good absent incentives in the here and now.
So, what are the incentives that will drive Bitcoin to true mainstream adoption? What is the pitch at this point?
P.S. This is a self-moderated thread - signal, not noise, please!
Lately there's been a lot of good news of the "Expedia accepts Bitcoin" and "New bitcoin ETF coming" variety, yet a rally is decidedly not underway. Why would this be?
Maybe it's relevant that while these new developments may increase Bitcoin's utility to existing holders, or provide avenues for new speculators, they bring little to the table to increase adoption of Bitcoin in the short to medium term. Competing as a payment method for traditional online commerce is a tough proposition for Bitcoin: Niche cases apart, credit cards work just fine for most consumers. Merchants would have to systematically offer high discounts for their customers to deal with the added hassle and high volatility of buying BTC just to pay for their purchases.
As for increased investor demand, that can't supplant fundamental growth of the ecosystem. New funds etc. may end up running the price up again, but if Bitcoin doesn't gather true utility for non-speculative demand to catch up, it's a bubble waiting to happen at best.
The most ambitious promise of Bitcoin, IMO, is to introduce sound money into commerce, reducing the deleterious effects of debt bubbles. It's an ambitious goal to say the least, but I don't see a noble idea driving consumer adoption. Most people do not voluntarily inconvenience themselves for the future greater good absent incentives in the here and now.
So, what are the incentives that will drive Bitcoin to true mainstream adoption? What is the pitch at this point?
P.S. This is a self-moderated thread - signal, not noise, please!
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