[2014-07-22] Stripe: Bitcoin Has Future in Global Payments if Issues Solved

[epere]

http://www.coindesk.com/stripe-bitcoin-future-global-payments-issues-solved/

San Francicso-based Stripe, a company that offers API-based payment systems, has published a blog post examining how it expects the bitcoin market to develop.

Titled “Bitcoin: The Stripe Perspective”, the article examines what the company believes it may take for mainstream consumer adoption of digital currency to ignite.

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[Carlton Banks]

Seems a little strange that a payments company that does not have an international payments presence is giving advice about getting international reach in respect of a system that already has international scope (and always has done). Do donkeys give horses advice on how to gallop?

[Whitehouse]

Umm... what are these issues that bitcoin apparently has? Volatility?

[williamj2543]

Probably volatility, because who wants to pay 3$ for a big mac, then the next day it is 1$, and then the next day its 6$. People don't want every day to be a gamble with their entire bank account.

[Chef Ramsay]

Probably volatility, because who wants to pay 3$ for a big mac, then the next day it is 1$, and then the next day its 6$.

The yo yo pricing you're describing only take place during the bubble formations when there's mania buying in progress. The last 3-4 months, while there has been fluctuations in pricing, has been fairly steady in terms of if one spends a BTC there is ample time to get another one in due time for a similar price. There's volatility in what one can purchase for their value of USD and it's an upside down correlation short and longer term compared to BTC. BTC's value or purchasing power doesn't have the leisure of economists cooking the different indexes and hiding things like they do w/ fiat's inflationary aspects.

[bitbouillion]

Probably volatility, because who wants to pay 3$ for a big mac, then the next day it is 1$, and then the next day its 6$. People don't want every day to be a gamble with their entire bank account.

Who wants to pay 3.50$ for a gallon of gas, then the next day it is 3.20$, and then the next day its 3.90$? This was never resolved and sale of gas never went mainstream. The same is true for food prices, hotel rates, airfares and many other things.

Sorry for being sarcastic, but price fluctuations are just a symptom of the algorithm to adjust to demand and supply. Even gold, treasuries and real estate prices go up and down. People tend to forget how volatile our world and in fact the Dollar is. It all depends on the viewer perspective.   

To "resolve" price fluctuations means interference, manipulation and in the end destruction of the market. This never ends good.  

[williamj2543]

But my point is that the price has a chance of fluctuating very greatly. Imagine bitcoin becomes big. Most people are using it, some people have their entire live savings in it. Imagine if the price fluctuated 50% daily. Your 2 million dollars in your live savings, now 1 million. Next day its 3 million. If holding money was a gamble, I probably would not use bitcoin.

[Ron~Popeil]

But my point is that the price has a chance of fluctuating very greatly. Imagine bitcoin becomes big. Most people are using it, some people have their entire live savings in it. Imagine if the price fluctuated 50% daily. Your 2 million dollars in your live savings, now 1 million. Next day its 3 million. If holding money was a gamble, I probably would not use bitcoin.

But the price doesn't fluctuate 50% daily. Fiat currency has been known to do so at times. As acceptance grows market forces will keep the price in a relatively narrow window. Steadily upward growth is the most logical path.

[Swordsoffreedom]

Seems a little strange that a payments company that does not have an international payments presence is giving advice about getting international reach in respect of a system that already has international scope (and always has done). Do donkeys give horses advice on how to gallop?

Good point kind of does seem strange when you think about it that way
That said everyone has an opinion

Well from CD
Despite potential obstacles to broader adoption, however, Stripe posits that digital currency and the underlying technology could be a valuable tool in solving some of the key challenges in payments today.
Seems positive enough though.