Next generation money

[yayayo]

I think the wording of the Poll's question is not sufficiently precise. I don't think that Bitcoin revolutionized the concept of money, since the concept of money is extremely abstract. Money is perceived as a medium of value (this means you can purchase things with it). This holds true for Bitcoin as well. So there is no change in regard to the concept.

However I agree that on a technical level, Bitcoin is a new form of money: There has never been a decentralized verification of authenticity and ownership of electronic money before Bitcoin. So in that regard (the functional implementation of a specific kind of money), Bitcoin can be called "next generation money".

ya.ya.yo!

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[Cybertron00]

In my opinion bitcoin didn't revolutionize the concept of money, it just eases the way people earn online and eases online transactions.

[outatime1]

I think the blockchain and bitcoin revolutionized the storage and transfer of money in the same way the the internet revolutionized information access and the way email revolutionized communication.

[deisik]

I think the wording of the Poll's question is not sufficiently precise. I don't think that Bitcoin revolutionized the concept of money, since the concept of money is extremely abstract. Money is perceived as a medium of value (this means you can purchase things with it). This holds true for Bitcoin as well. So there is no change in regard to the concept

Yes, I knew that and concur with you. As I already said, Bitcoin can't change the concept of money in the strict and proper sense of the notion (since that wouldn't be money thereafter). Nevertheless, I thought this was the simplest way to convey the idea to an average Joe without getting into an explanation of insignificant details (in this respect)...

The concept of money despite it being highly abstract is pretty simple, though

[deisik]

However I agree that on a technical level, Bitcoin is a new form of money: There has never been a decentralized verification of authenticity and ownership of electronic money before Bitcoin. So in that regard (the functional implementation of a specific kind of money), Bitcoin can be called "next generation money"

But you are repeating the same mantra that has already been voiced and addressed on the previous page. That is, something new doesn't mean a revolution just for the fact of it having not been around before. On the other hand, if something had been around for ages, but found a fundamentally new implementation (for example, oil in the 19th century), it still revolutionized the ways people live. In what concerns money, the Freigeld money (free money) was also a brand new idea, but did it revolutionize anything and how many people today even heard about it?

In this way, the criterion for the state of being "revolutionary" should be the strength of impact on society as whole (like what Internet did), not the novelty of it

[mindrust]

Bitcoin is like mp3, torrent, napster, divx, 3d and so on...

All of those technologies above changed a lot in the world and bitcoin is doing exactly the same. It changes everyone's life in a good way. Mastercard also changed the world back in the day but thiss a whole new level.

[deisik]

Bitcoin is like mp3, torrent, napster, divx, 3d and so on...

All of those technologies above changed a lot in the world and bitcoin is doing exactly the same. It changes everyone's life in a good way. Mastercard also changed the world back in the day but thiss a whole new level.

What is napster and how did it change the lives (my life included) of people across the world?

[BobK71]

I hold the opposite view, actually.  The blockchain is just a piece of technology.  Bitcoin, on the other hand, if it succeeds as a currency or a store of value, changes the power relationship between the political and financial elites and the public.  It would help lead to a fundamentally more open and healthy society as well as economy.

I see what you mean, but I can't agree with this, though I wish you were right. So far it didn't change a thing in that direction. Let's face the facts, the fields where Bitcoin prospers, that is, trading and gambling, can't possibly lead to a better society and healthier economy by any means...

And I'm not even mentioning the DarkNet where Bitcoin also flourishes

Your wish might be more granted than you think.

Anything that empowers the citizenry against government will probably empower criminals and terrorists too (e.g. guns.)  IMO freedom from tyranny is more fundamental.  There are other ways to strengthen law enforcement, just as there are other ways for terrorists to transact, e.g. dollar cash.

In the realm of money and finance, these elements interact in very interesting ways.  E.g. it's the same illegal transactions that provide demand for Bitcoin, which in turn give confidence to Chinese savers today for using Bitcoin to get around their government's capital controls and get out of the yuan.

Probably, in addition to China's, all major central banks are being constrained by the possibility of capital flight to Bitcoin, even if, as usual, they will never admit it.

[freshman777]

I tend to think it revolutionized the concept of money, but it is not the last and not the only, it's a pilot project. Much like the first plane or the first car were basic mechanisms. The concept will change over time but it was a breakthrough - censorship resistant permissionless transactions sent over the wire, decentralized creation of money - we gotta give it to Bitcoin. Was the first plane and the first car a revolution in transportation industry 100 years ago? We can say in retrospect they were; it was far from obvious at that time though. The concept is changing already: as you said before, Bitcoin is not decentralized creation of money at this point in time. Censorship resistant transactions keep buzzing along, but the decentralization aspect of money creation is gone with ASIC mining, censorship resistance is weakened. Can the honey badger of money regroup and get rid of centralized ASIC mining is the big question. It doesn't bear much significance for the concept if Bitcoin is phased out over time. The concept can't be stuffed back in the box, it's been planted in thousands of minds who will build new, more advanced techniques to keep the idea alive.

[deisik]

In the realm of money and finance, these elements interact in very interesting ways.  E.g. it's the same illegal transactions that provide demand for Bitcoin, which in turn give confidence to Chinese savers today for using Bitcoin to get around their government's capital controls and get out of the yuan

Why go only halfway? Heroin trafficking from Asia to Europe doesn't let children die from hunger in Afghanistan, so why not legitimize it?

Or do children in Afghanistan not deserve to live?

[Mr.grin]

Well, maybe everyone will use one card can have value someday. and certainly bitcoin will be present in the future as a new currency and will probably be the next generation of money

[Snorek]

Some facts about Bitcoin:

1. Bitcoin is unique because it is backed by blockchain.
Blockchain is new concept and we never seen anything like that, it was simply not possible before internet to have totally transparent and ultimate ledger with every transaction stored forever.

2. Bitcoin is different because it is hard capped. FIAT can be created, printed or conjured out of thin air indefinitely. Bitcoin can't.

2. Bitcoin is ultimate money because you can't counterfeit it.

[deisik]

I tend to think it revolutionized the concept of money, but it is not the last and not the only, it's a pilot project. Much like the first plane or the first car were basic mechanisms. The concept will change over time but it was a breakthrough - censorship resistant permissionless transactions sent over the wire, decentralized creation of money - we gotta give it to Bitcoin. Was the first plane and the first car a revolution in transportation industry 100 years ago? We can say in retrospect they were; it was far from obvious at that time though. The concept is changing already: as you said before, Bitcoin is not decentralized creation of money at this point in time. Censorship resistant transactions keep buzzing along, but the decentralization aspect of money creation is gone with ASIC mining, censorship resistance is weakened. Can the honey badger of money regroup and get rid of centralized ASIC mining is the big question. It doesn't bear much significance for the concept if Bitcoin is phased out over time. The concept can't be stuffed back in the box, it's been planted in thousands of minds who will build new, more advanced techniques to keep the idea alive.

Methinks, decentralization aspect of money creation was the only real thing about Bitcoin. Though not entirely new (gold is also "created" in a decentralized manner) or perfect (as you say yourself), but that could be fixed either directly (through changes in the algo) or circumstantially, through feedback loops. Now that this aspect is almost gone, we just have corporations in the hide of mining pools doing exactly the same what governments (and banks) do...

Let's assume for a moment that governments are gone and Bitcoin has actually taken off as a world currency, what will it change fundamentally?

[DavidoAlto]

Bitcoin will be the future money and that is really nice because you can even now see that Bitcoin is becoming more popular and used so that is perfect.
The only thing that we cant control is the value and that is also the most risky thing of Bitcoin.

[d5000]

Gold as money existed long before fiat, and it was "created" in a decentralized way too, so nothing particularly new here as well...

In my opinion, the "revolutionary" property of Bitcoin and other cryptocurrencies is not only decentralization. It's the fact that it makes possible a financial system with much less overhead - in short, a much more effective system.

With cryptocurrencies you are able to open an "account" and to get "loans" and even use more complex financial products (see Bitshares / Ethereum) without the large security and labor costs that traditional banks and other financial institutions have.

The most severe problem of cryptocurrencies is still volatility. Bitcoin is basically unusable for everyday money use. Until now only Bitshares has a fairly secure and working model for a stable asset that exists only inside the "cryptocurrency sphere" without any centralized backing from external sources. Bitshares, unfortunately, is poorly managed by its "leaders" - and there should be no leaders at all. So I would consider "the next revolution" a non-volatile, totally descentralized cryptocurrency (or cryptocurrency asset).

[socks435]

Bitcoin will be the future money and that is really nice because you can even now see that Bitcoin is becoming more popular and used so that is perfect.
The only thing that we cant control is the value and that is also the most risky thing of Bitcoin.

Bitcoin is already money we already use it to buy something in online.. if you mean that bitcoin will be replace money as our new money for me its impossible to happen in the future.. this is just currency online.. anytime internet can be gone..

[BlackPanda]

It could happen. if the current bitcoin already seen positive changes that significantly. maybe the next few years could become the standard bitcoin currency in the world. the future is technological progress and all of our lives will be accompanied by sophisticated technology. bitcoin present to the future.

[deisik]

Bitcoin will be the future money and that is really nice because you can even now see that Bitcoin is becoming more popular and used so that is perfect.
The only thing that we cant control is the value and that is also the most risky thing of Bitcoin.

Spammers are not welcomed here

[deisik]

Bitcoin will be the future money and that is really nice because you can even now see that Bitcoin is becoming more popular and used so that is perfect.
The only thing that we cant control is the value and that is also the most risky thing of Bitcoin.

Bitcoin is already money we already use it to buy something in online.. if you mean that bitcoin will be replace money as our new money for me its impossible to happen in the future.. this is just currency online.. anytime internet can be gone..

Answering to spammy posts isn't welcomed either

[deisik]

Some facts about Bitcoin:

1. Bitcoin is unique because it is backed by blockchain.
Blockchain is new concept and we never seen anything like that, it was simply not possible before internet to have totally transparent and ultimate ledger with every transaction stored forever.

2. Bitcoin is different because it is hard capped. FIAT can be created, printed or conjured out of thin air indefinitely. Bitcoin can't.

2. Bitcoin is ultimate money because you can [not] counterfeit it.

These facts aren't enough to make Bitcoin into a revolution in the "money-making"

1. Being unique just as being new won't suffice. I have explained this earlier
2. Gold is also "capped". On the other hand, this alone can be hardly construed as a "revolution", by any means
3. Double-spend and whatever else that I don't even know about