10 reasons for bitcoin to prosper

[aminorex]

Re: Zimbabwe

Not on fundamental grounds would that imply $1k.  The BTC economy is turning at $22bn USD2013 /an currently.  Zim GDP is only $11bn USD2013 /an, so on a purely economic grounds it should only increase the value of the ccy to ~300 USD.  However, gaining FX status would change the regulatory environment and global mind-set towards BTC dramatically, so that it might experience a 1K bubble effect.  On a fundamental level, however, penetrating the $2tn global black market or absorbing a significant fraction of the secret-no-more swiss banking industry would be much more significant that a Zimbabwean adoption.

It would be brilliant move by Zim, however.  Suddenly their currency would be appreciating, and living standards would skyrocket.

[gaston909]

And the only reason why not to, is that it can be to risky to invest and depend on it. There are not enough ppl who will sell a house for X amount of bitcoins and risk losing a good % due to price fluctuation.

Risk is overrated.

instant conversion to fiat, no risk.

long term risk ib btc... might go up.

[Dioptriy]

so you realy think btc could become official currency in some country? Have big doubts for many reasons.

Maybe someone can add something to my list? Be my guests!

[maurya78]

Arguably, BTC's most compelling use case is for commerce in unstable nations with chronic inflation issues

The popularity of mobile money in parts of sub-saharan africa (M-PESA in Kenya etc) arguably paves the way for BTC to come into play going forward

Lots of telco hardware infrastructure is getting built right now and that is going to be key

Still some time away bit not too long now, I reckon

[Dioptriy]

in a light of recent events it appears i got it right   

[AnonyMint]

1)   It’s New!

As is the pimple on my left buttock.

2)   Freedom...

...To Incriminate Myself.

3)   Privacy...

...That Never Was.

4)   Safety...

...Is Now 10 Copies of USB Sticks.

5)   Market stats

~0.1% market cap/transactions

6)   Black market factor

Manny Pacquiao gives Rios a blackeye on Saturday.

7)   Limited emission and mining

Limited Technical Knowledge Speaks Nonsense

8 )   Herd instinct

Mooo. Baaa. Mooo.

9)   Geek effect

Alpha-Beta-Cratered

10)   Free market gap

BitCornthanol?

11)   Hidden functions

Satoshimotolapse.

PS

Postmenopalmalls Syndrome?

[Hawker]

in a light of recent events it appears i got it right   

Yes you nailed it.  Still think it should be stickied and that we need a Like button.

[nate008]

1)   It’s New!

As is the pimple on my left buttock.

2)   Freedom...

...To Incriminate Myself.

3)   Privacy...

...That Never Was.

4)   Safety...

...Is Now 10 Copies of USB Sticks.

5)   Market stats

~0.1% market cap/transactions

6)   Black market factor

Manny Pacquiao gives Rios a blackeye on Saturday.

7)   Limited emission and mining

Limited Technical Knowledge Speaks Nonsense

8 )   Herd instinct

Mooo. Baaa. Mooo.

9)   Geek effect

Alpha-Beta-Cratered

10)   Free market gap

BitCornthanol?

11)   Hidden functions

Satoshimotolapse.

PS

Postmenopalmalls Syndrome?

Do I have to "welcome" you on my ignore list ?

[mladen00]

The best thing about BTC is that ONE goverment cant do nothing to stop it.
Nobody cant stop the internet
Nobody cant stop the power

Sure gov. have opiton to say that BTC is illegal...BUT WHY ILLEGAL?

[niothor]

The best thing about BTC is that ONE goverment cant do nothing to stop it.
Nobody cant stop the internet
Nobody cant stop the power

Sure gov. have opiton to say that BTC is illegal...BUT WHY ILLEGAL?

Again with the crap the nobody can stop the internet?
It has been done , can be done and will be done!

[deisik]

1)   It’s New!
Bitcoin is a new and fresh thing. And there is always a factor of interest for something totally new and just gaining popularity. Whether this wave will be short or long, the main thing it exists.

The word prosper as far as I understand it implies at least some longevity of being successful. If you are rich now and the next day you turn poor, this surely wouldn't count as prosperity. Bitcoin might be new (though this is questionable) and because of that it may be attractive today, but this doesn't guarantee that it will be attractive tomorrow. So no point given...

[deisik]

2)   Freedom
There is always demand for a way to trade free and bitcoin is the only way today to do it. (altcoins still very small and underdeveloped). FIA currencies  hold so many limitation and borders , they hardly could be called a free way for trading today.

The freedom Bitcoin allegedly provides would be required only by a minuscule amount of people when compared to the number of people which would allow to call it a success. And Silk Road has showed us all that there is no freedom Bitcoin promises to deliver. No point either...

[deisik]

3)   Privacy
This is actually very big and complex issue. Privacy is needed not only for selling illegal stuff, but needed  by general public as well. Whether it is psychologically motivated or legit need for fund safety. Principals of Secrecy and  sanctity of property rights were untouchable but not anymore. Cyprus was just a warm-up, test for the incoming actual attack on property rights all around the world.
Just recently ended long respected era of bank secrecy in swiss banks
http://en-maktoob.news.yahoo.com/swiss-sign-last-rites-banking-secrecy-oecd-100647333.html

Oh, it seems that I have been running ahead of you. Thus, Silk Road and all that. Block chain is there forever, what could be better for an inquiring investigator? So you guess it right, this doesn't count...

[deisik]

4)   Safety
Today banks are not actually safe way to hold to your money anymore. Banking crisis, high possibility of money theft, shifts in personal rights politics and many more. Bank can freeze your account or even take away a part of your money like they did all over the world. (again Cyprus is the most graphic example). Bitcoin gives you today maybe the highest level of money safety and freedom.
Bitcoin is the first structure that gains its safety not by political or cultural decisions but from great open source code. This is actually kind of “New Era” stuff.

Do you actually think that your computer would be harder to break in than into a bank account? I don't say that banks are not being hacked or anything, but your chances are by a long shot higher to get your money back from the bank if it is hacked or goes belly up (FDIC or whatever it may be called) than when your wallet is stolen from the computer you sit at in the Internet (which could just fail). Well, Cyprus happens just like any other shit happens in life, but why do you compare banks vs Bitcoin in the first place and consider this as a proof of Bitcoin's safety?

[deisik]

5) Market stats
Whatever the reasons are, crypto-currency  market is growing, and it’s a fact. So the tendency will continue for some time. People believe in what they see so stats are not only “conclusion” but also a “reason”.
You can look here for number of transactions growth stats
http://blockchain.info/en/charts/n-transactions-excluding-popular?timespan=all&showDataPoints=false&daysAverageString=1&show_header=true&scale=0&address=
And here for market capitalization
http://blockchain.info/charts/market-cap?timespan=1year&showDataPoints=false&daysAverageString=1&show_header=true&scale=0&address=

Bitcoin market cap is minute in absolute terms, to say the least. Its growth is provided primarily by speculation, not with goods and services which could mean something worthy of consideration. With the same success you could consider a "market cap" of some Ponzy scheme. Easy come, easy go...

[deisik]

6)   Black market factor
It is all about reasons 2, 3 and 4, but what I am trying to say here is little bit different. Total black market capacity of the world is more than 2 trillion US dollars. And BM actually needs systems like bitcoin. So we will witness a big  shift towards bitcoin with those groups, I think.

When we actually see this shift of the black market toward Bitcoin, then it will be a point for discussion. Now there is none that I know of, and I doubt it strongly this will ever happen. The Silk Road example has given the black market a strong evidence that Bitcoin's safety is questionable at best...

[deisik]

7)   Limited emission and mining
As you know bitcoin code limits daily emission of coins into the network, so there is no regulatory or any other softening factor to limit deficit when it hits the market. So significant deflation kicks in. And though mining difficulty does not have direct effect on BTC price, it still kind of does, as bitcoin quantity is limited in the end.

If you think that deflation will make Bitcoin prosper, then you don't have a clue what constant currency appreciation actually means for the economy. Have you ever heard anything about the Great Depression, the reasons behind it and why gold standard was abandoned after the shit happened?

[deisik]

8 )   Herd instinct
Even not very good or valuable products can witness the herd instinct effect. When everyone uses twitter(service with very limited functionality), a lot of people kind of subconsciously want to use it too. In some cases you will even have to follow the public in case if you need to reach that group of people. The effect is also witnessed at vogue waves. So the more people will use bitcoin, the more new ones will follow them. So it can kind of  snowball at some point.

For using twitter you don't have to pay anything, for using Bitcoin you have. And I think that you would need something better than just herd instinct to make Bitcoin prosper. And don't forget that in reality it works the other way as easily...

[deisik]

9)   Geek effect
Geeks are a very big group of people and bitcoin is as cutting edge as it gets. So it is match made in heaven. We already can see a huge support from fans of new technology. For some it’s “just for fun”, for others it’s lifestyle or even ideology.

In the first place, geeks wouldn't be called geeks if they were "a very big group of people". Actually, Bitcoin support is very limited and it may remain so despite being highly popular within that group of people. This certainly wouldn't count as success in absolute terms, which you herald here, as far as I can guess...

[deisik]

10)   Free market gap
1,5 billion dollar “capitalization” today is a drop at the sea. There is a huge market for that kind of financial instrument and there is no actual competition. Altcoins are trailing behind and IT corporations are afraid to start a new currency.

It is actually at around 10 billion dollars if I'm not mistaken, though I agree this is still a drop in the sea. You just wouldn't be able to think up a cogent reason why these figures taken as such would mean there is a huge market lying ahead. Actually, what you say here is no more than just wishful thinking...