I am new to Bitcoin so I feel uniquely qualified to add my 02uBTC.
Until the use of Bitcoin is as fast and easy as something like Paypal, it cannot catch on with 'regular' people. Right now it is just too confusing, difficult and slow.
Topic: State of the Real Bitcoin Economy - page 9. (Read 14575 times)
Or do you still think that Bitcoin can survive as an investment only and, if so, for how much longer?
Thats my fear. If it only survives off speculation about profits that can be made via exchange for USD then it'll become more and more useless as a currency.
I think it'll be just shoulders for the next thing that might achieve what btc failing too.
I think now people judge btc success on its value vs USD, rather then its adoption as a genuine currency....which is sad.
Internet services such as VPN's and VPS's are already functioning well as are DNS websites and hardware websites.
The adoption may be slow but it is not dying and as long as people are prepared to keep at it I think it will survive.
The adoption may be slow but it is not dying and as long as people are prepared to keep at it I think it will survive.
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or buying beer in Germany, and for buying electronics in China.
And buying coffee in China.
There's a few upscale coffeeshops taking Bitcoin as a form of payment since earlier this year. There is still growth, and that's increasing at a fairly rapid speed.
Reserved.
After almost three years in the Bitcoin community, I think it's time to step back and take a look at the state of the real Bitcoin economy. We all know that, ever since Laszlo bought his pizzas, Bitcoin has had difficulties breaking into the mainstream among physical merchants. Hundreds of businesses have been attempted, selling everything from wireless phone minutes to wedding cakes. Few have survived. Even fewer have really taken hold.
So what are the major bellwethers for the Bitcoin economy today, and what kind of prospects do they face? Here are a few:
Bitmit -- Slow growth
Bitcoin Store -- Not meeting goals
BitPay Merchants -- Stagnation
On the internet, growth is there, but slow. No major e-commerce site (besides Wordpress) has adopted Bitcoin. Adoption among smaller sites is fickle, at best. Today, you might see the odd Bitcoin offer on Craigslist, and if you look you can find a VPN provider or web host that accepts Bitcoin. But no Amazon, no eBay, not even Alibaba or Overstock.com support.
The state of physical transactions is even worse. There is at least an iPhone app now. That's a step forward. But still no practical physical Bitcoins, or other good method of reaching the billions of people without smart phones and internet access. No major retail acceptance. Not even the odd local community or farmers market.
Is there anywhere that Bitcoin is succeeding, among real-life physical merchants? Well, perhaps in two places: for buying beer in Germany, and for buying electronics in China. It's yet to be seen how long these will last.
Even in Argentina, which is arguably the perfect location for Bitcoin adoption, having both the infrastructure to support Bitcoin and the horrible national currency and regulatory environment to motivate its adoption, Bitcoin is still seen mostly as an investment, a hedge against inflation, rather than a practical currency.
So what does all of this tell us? It tells us that while Bitcoin may be a great investment, it's not a great payment mechanism, even on the internet. It tells us that Bitcoin early adopters are not very interested in spending. It tells us that industries in regions with stiff competition will branch out to accept Bitcoin in order to gain competitive advantage. But, mostly, it tells us that we really must re-consider the prospects for Bitcoin in the long term, if we have such difficulty making it work as a practical currency right now, with such a huge head-start.
Even with the difficulties of Dwolla and Liberty Reserve, Bitcoin is not picking up the slack. Relative unknowns like PerfectMoney and Payza are. Tough competititors like Ripple and Square are making gains.
The strategy of focusing on remittance payments has borne little fruit, for obvious reasons. What is a poor family in a third world supposed to do with Bitcoins, if they don't even have internet access? How is an immigrant worker in the developed world supposed to get Bitcoins to send, without incurring huge exchange fees, or losses due to volatility?
So, what do you guys think is the way forward? Now that we have ASICs, and Bitcoin is technically secure against all but the most capable threats, how will the real Bitcoin economy grow to capitalize on this investment? Or do you still think that Bitcoin can survive as an investment only and, if so, for how much longer?
So what are the major bellwethers for the Bitcoin economy today, and what kind of prospects do they face? Here are a few:
Bitmit -- Slow growth
Bitcoin Store -- Not meeting goals
BitPay Merchants -- Stagnation
On the internet, growth is there, but slow. No major e-commerce site (besides Wordpress) has adopted Bitcoin. Adoption among smaller sites is fickle, at best. Today, you might see the odd Bitcoin offer on Craigslist, and if you look you can find a VPN provider or web host that accepts Bitcoin. But no Amazon, no eBay, not even Alibaba or Overstock.com support.
The state of physical transactions is even worse. There is at least an iPhone app now. That's a step forward. But still no practical physical Bitcoins, or other good method of reaching the billions of people without smart phones and internet access. No major retail acceptance. Not even the odd local community or farmers market.
Is there anywhere that Bitcoin is succeeding, among real-life physical merchants? Well, perhaps in two places: for buying beer in Germany, and for buying electronics in China. It's yet to be seen how long these will last.
Even in Argentina, which is arguably the perfect location for Bitcoin adoption, having both the infrastructure to support Bitcoin and the horrible national currency and regulatory environment to motivate its adoption, Bitcoin is still seen mostly as an investment, a hedge against inflation, rather than a practical currency.
So what does all of this tell us? It tells us that while Bitcoin may be a great investment, it's not a great payment mechanism, even on the internet. It tells us that Bitcoin early adopters are not very interested in spending. It tells us that industries in regions with stiff competition will branch out to accept Bitcoin in order to gain competitive advantage. But, mostly, it tells us that we really must re-consider the prospects for Bitcoin in the long term, if we have such difficulty making it work as a practical currency right now, with such a huge head-start.
Even with the difficulties of Dwolla and Liberty Reserve, Bitcoin is not picking up the slack. Relative unknowns like PerfectMoney and Payza are. Tough competititors like Ripple and Square are making gains.
The strategy of focusing on remittance payments has borne little fruit, for obvious reasons. What is a poor family in a third world supposed to do with Bitcoins, if they don't even have internet access? How is an immigrant worker in the developed world supposed to get Bitcoins to send, without incurring huge exchange fees, or losses due to volatility?
So, what do you guys think is the way forward? Now that we have ASICs, and Bitcoin is technically secure against all but the most capable threats, how will the real Bitcoin economy grow to capitalize on this investment? Or do you still think that Bitcoin can survive as an investment only and, if so, for how much longer?
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