Topic: My thoughts on why Bitcoin’s success is actually built into its business model. (Read 213 times)

Exactly. Large amounts = smaller fees = attract larger longterm investment. High fees for smaller transactions keep smaller purchase/point of sale money out at this stage.

The fees aren't that bad when dealing with large amounts. I think it's only ever a problem when you need a fast transaction and you are sending very small amounts, which means sometimes the fee is higher than the actual amount. Larger amounts, have very small fees though.

How can you ensure that the transaction fees will decrease? I agree with your main points, but unless transaction fees decrease drastically, I think bitcoin's "business model" (if there is even such a thing) as a mode of payment will not happen.

As long as investment continues, Bitcoin’s longterm success is ensured. Sounds obvious enough, I know, but consider this theory: Controllers established initially expensive transfer rates, so that early on BTC is treated as an asset (gold, stocks etc), vs. an everyday currency, thus attracting long term institutional money, the asset foundation if you will. Once a valuation foundation is established, and in the process transfer speeds/bugs are naturally ironed out, the rates will be lowered making BTC practical for even the smallest transaction, which in turn attracts the Amazons, Visas, and mom and pops, further ensuring integration into society.

We’re obviously still in the speculative phase, with an ‘institutional’ phase to follow, and the ‘transactional’ phase after that. The value in everyday future transactions will be underwritten by the intrinsic built-in value that’s being created now, which in turn will be validated by the high volume of future, widespread use among all financial sectors. Brilliantly, the creators anticipated this current volatility and realized that for a finite currency to be successful in the long term, it was most important for it to be considered an asset and not a currency, first.

I purposefully didn’t consider the civil war that’s recently occurred; seems it’s part the natural process, though ultimately avoidable had they realized that in fact BTC should be both, an asset and a currency. Minus govt intervention such as govt creating  its own fedcoin, and outlawing all others, this supports the theory that Bitcoin’s value will continue to increase, to untold heights. Thoughts?