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April 09, 2013, 03:16:57 PM |
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Ask anyone who knows me, they will tell you I'm obsessed with Bitcoin. I have no doubt that Bitcoins will grow and entire countries may start adapting the currency into their every-day economy. With that, I give you my fears.
For the businesses who don't/can't use Bitcoins: It is possible that Bitcoin can become to big to actually threaten the usage of the United States Dollar. With this, it is also possible that big businesses (Government, Visa, Mastercard, Paypal) that rely on this "USD" may soon fear the BTC. There is a possibility of them getting together to take out a monetary loan to attempt to eradicate the exchange of Bitcoins for USD. What's $1,000,000,000 to milti-billion dollar companies to save their USD from loosing it's value?
For the businesses who use (or require the use of) Bitcoins: There will be little fear of Bitcoins unless government intervenes and denies the usage for sales. This will do one of two things: 1) Drive Bitcoins into the ground, or strait into underground-only markets or 2) force companies to shutdown/re-locate in support of the ever-growing new currency (unlikely).
If it hasn't already, Bitcoins will change the idea of currency for the world. Even if Bitcoins doesn't succeed, the idea of having a decentralized economy will still spring back up in the future one way or another. Mark my words, by ~2023 (this date should sound familiar) either Bitcoins will be the only currency or a look-alike will take it's place.
What would help keep Bitcoins alive? My idea?
It would take a movement to convert people from constantly using USD to: occasionally using USD and constantly using BTC. First, businesses will need to start accepting Bitcoins wide-scale. Unfortunately, the USD/BTC market isn't deep enough for any multi-billion dollar companies to see the use in accepting this currency where they can't even afford to pay the electricity bill on all their buildings in Bitcoins without crashing the exchanges.
We need to talk to as many small-to-medium size ($1-$10 million/year) companies in order to create a stable growth in Bitcoins. Once the depths reach ~$5million (to move BTC/USD $1), that is when it would be suitable for larger companies ($10-$50 million/year) to start accepting. After that, it would be a toss-up for larger companies to start accepting.
These are my guesses. Everything is from my brain (watching markets, trading, news...etc).
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