Is Bitcoin Ready for the Major Leagues?

[LakeBTC]

Bitcoin is a cryptocurrency that is now about five years old and there are more than a few experts speculating whether or not Bitcoin is ready for the Big Leagues or whether Bitcoin is robust enough to handle the workload of an entire national or global economy. But before we can answer that question we must first determine the hurdles still in front of the nascent digital currency. If Bitcoin has what it takes to overcome these challenges, then it could very well be ready for the spotlight.

Meeting the Challenges

There are a couple of important points that we need to remember. If Bitcoin is ever to become a mainstream currency at least one of the major economic nations will have to accept it as such and the truth is that this is not going to happen without regulations being attached to that recognition. There are several reasons for this:

• The government has a duty to protect consumers
• The government has a duty to prevent crime or criminal activity
• The government has a need to track money for tax purposes

But there is another reason as well. Regulations, especially in the financial industry, are often a matter of who has the best lobbyist. Laws are passed almost daily that favor one part of an industry over another or one industry over another. One of the main reasons for the 2008 economic crisis was the US deregulation of the banking industry, a problem that still has not been fixed.

The financial industry might see a way to make money with Bitcoin, but on the other hand if allowed to remain as is, Bitcoin could cost supplant the industry costing it tens of billions annually in transfer and account fees.



The Propaganda Wars

If you want news about Bitcoin you have to search for virtual currency focused media outlets. While the mainstream media certainly dabbles in Bitcoin, their coverage usually focuses on the negative aspects of Bitcoin’s growth such as criminal activity or a big loss by customers from a failed exchange.

A March poll by an online survey taken by Harris Interactive on behalf of California-based Yodlee, a self-described personal finance data platform, revealed that only 48% of American adults know about Bitcoin. And it is no secret that most of them get their news only from the major news outlets. Bitcoin’s public image will certainly suffer if this trend continues with only one side of the story is being reported.

A recent article in Bitcoin magazine illustrates the point perfectly:

“[…] We are distracted. Of 100 people personally polled, most people could not actually explain or define Bitcoin to me, but they could tell me all about how it “went bankrupt in Japan,” how “Bitcoin’s CEO committed suicide,” and how “the bank got robbed and they went under.” Like it or not, the majority of people are still convinced by 30-second television bits that focus on the 1% of “bad” news. And why would these news clips focus on anything else?”

But many Bitcoin startups are engaging with their communities. The Bitcoin Cup for instance is a charity centered at the 2014 World Cup that raises money for local communities by taking Bitcoin donations. Bitcoin clubs are springing up at universities all over the world, as are Bitcoin ATMs and this is before any countries have backed Bitcoin officially.

As Bitcoin gains in popularity, the corresponding news will also shift towards a more positive tone, which we are already seeing with headlines announcing major companies accepting Bitcoin and venture capitalists pumping money into the new economy.

....

http://cointelegraph.com/news/112259/op-ed-is-bitcoin-ready-for-the-major-leagues

[BittBurger]

whether or not Bitcoin is ready for the Big Leagues or whether Bitcoin is robust enough to handle the workload of an entire national or global economy

The protocol has sat with very little enhancement after an entire year now.  As Gavin stated recently:  Development has come nearly grounding to a halt due to bickering and differences of opinion.   Thats super.  Not like its the most important financial innovation of the last 500 years or anything.  

The excuse that it cant be modified heavily because its such an important piece of software is only going to be a valid excuse for so long.  (the whole "enhancing a plane while in flight" reference too).  

Bitcoin needs features that make it usable to the various financial industries.  Or some solution which allows for extending its capabilities to usurp those industries.   But alas, this suggestion, like all the others, is met with shrugged shoulders as far as I can tell.  Tree Chains, Sidechains, whatever ... someone needs to take the reigns and get development moving.  Now.  Fast.  Not next year.  Not in five years.  What becomes available as a feature *now* gets used in business in 5 years.  Wait 5 years to implement it, and someone else will make something better in the meantime.

It doesn't matter how much we love bitcoin.  If its not in a usable form to the various financial services out there, its simply not going to be used.  It will always be just a peer to peer payment system, with some creative startups branching out its features a teeny weeny bit.

But that is not what we all want is it?  We all want a new global currency and economy.  Well guess what?  Bitcoin, in its current form, can't do that.  And there go all your hopes of "to the moon".  Whether we admit it or not, we are all relying on Bitcoins "Programmability".  Its ability to be enhanced.  But its not being enhanced in any meaningful way which makes it more flexible or usable to the financial world.  At least not as far as I can see.  Five months pass and i see minor usability enhancements.  All talk of major enhancements are "years off".   If people in these industries have a first glance at Bitcoin and see an insanely limited, basic feature set, they will simply walk away.  Some already have.

There is a laundry list of features that could be safely added to Bitcoin which would make it usable in numerous financial industries.  And the items on that list simply aren't being added.  This is my biggest and only concern about the long term viability of Bitcoin.

-B-

[Candystripes]

"Only 48% of American adults know about bitcoin"

Stupidest phrase I've ever read^^

[doubleredrolex]

"Only 48% of American adults know about bitcoin"

Stupidest phrase I've ever read^^

Thats totally not true.. maybe 4.8%. I went to the bank and was asking about connecting my account to my exchange online and 3 of the 5 tellers didn't know what Bitcoin was. One had heard of it, and one actually knew it was a currency and people used it. And these are people in the financial industry.

[Candystripes]

"Only 48% of American adults know about bitcoin"

Stupidest phrase I've ever read^^

Thats totally not true.. maybe 4.8%. I went to the bank and was asking about connecting my account to my exchange online and 3 of the 5 tellers didn't know what Bitcoin was. One had heard of it, and one actually knew it was a currency and people used it. And these are people in the financial industry.

Aha no I'd say around 10% know about it. Even then, he used the word "only".

[desticy]

"Only 48% of American adults know about bitcoin"

Stupidest phrase I've ever read^^

This is a survey, but long time ago.

[hua_hui]

not yet! still no many people know BTC. Even they know,  they don't trust it. There are a lot bad news about it. It is understandable the government give warning about it.

[Kprawn]

Even though BTC is scalable, the amount of BTC availlable, would remain a problem in my opinion.

The volume of transactions needed to go mainstream, could be addressed, by the introduction of more data centres geared towards BTC mining and even subsidized by governments.

The blockchain would become massive, and future "Full nodes" would have to be stored on servers, for this purpose. {ISP's etc.} But it's a non issue and could easily be done.

With some investments and some tweaking on the protocol, it could be possible. 

[Este Nuno]

whether or not Bitcoin is ready for the Big Leagues or whether Bitcoin is robust enough to handle the workload of an entire national or global economy

The protocol has sat with very little enhancement after an entire year now.  As Gavin stated recently:  Development has come nearly grounding to a halt due to bickering and differences of opinion.   Thats super.  Not like its the most important financial innovation of the last 500 years or anything. 

The excuse that it cant be modified heavily because its such an important piece of software is only going to be a valid excuse for so long.  (the whole "enhancing a plane while in flight" reference too). 

Bitcoin needs features that make it usable to the various financial industries.  Or some solution which allows for extending its capabilities to usurp those industries.   But alas, this suggestion, like all the others, is met with shrugged shoulders as far as I can tell.  Tree Chains, Sidechains, whatever ... someone needs to take the reigns and get development moving.  Now.  Fast.  Not next year.  Not in five years.  What becomes available as a feature *now* gets used in business in 5 years.  Wait 5 years to implement it, and someone else will make something better in the meantime.

It doesn't matter how much we love bitcoin.  If its not in a usable form to the various financial services out there, its simply not going to be used.  It will always be just a peer to peer payment system, with some creative startups branching out its features a teeny weeny bit.

But that is not what we all want is it?  We all want a new global currency and economy.  Well guess what?  Bitcoin, in its current form, can't do that.  And there go all your hopes of "to the moon".  Whether we admit it or not, we are all relying on Bitcoins "Programmability".  Its ability to be enhanced.  But its not being enhanced in any meaningful way which makes it more flexible or usable to the financial world.  At least not as far as I can see.  Five months pass and i see minor usability enhancements.  All talk of major enhancements are "years off".   If people in these industries have a first glance at Bitcoin and see an insanely limited, basic feature set, they will simply walk away.  Some already have.

There is a laundry list of features that could be safely added to Bitcoin which would make it usable in numerous financial industries.  And the items on that list simply aren't being added.  This is my biggest and only concern about the long term viability of Bitcoin.

-B-

No one will listen to you.

Cognitive dissonance is easier than accepting reality.

Everything is just peachy.

[LiteCoinGuy]

500.000 people own bitcoins? source?

50% know about bitcoin?



i guess they made the survey:

[Dogtanian]

Bitcoin is ready, but I don't think that's the question... the questions is the mainstream ready for us? I think it'll be a slow but steady growth but it's clear many more merchants are warming to the idea and seeing the clear benefits.

"Only 48% of American adults know about bitcoin"

Stupidest phrase I've ever read^^

Thats totally not true.. maybe 4.8%. I went to the bank and was asking about connecting my account to my exchange online and 3 of the 5 tellers didn't know what Bitcoin was. One had heard of it, and one actually knew it was a currency and people used it. And these are people in the financial industry.

Yeh, that figure seems made up and way too high.

[guybrushthreepwood]

Even though BTC is scalable, the amount of BTC availlable, would remain a problem in my opinion.

 

I don't think this is a problem in my opinion. If it were ever to get where the demand outgrows the supply, it just means smaller denominations will be worth more, which is great news for us. I think bitcoin is ready for the Major Leagues. I really don't see any real problems at the moment, though I guess only the future will tell but it looks bright to me.

[oceans]

I agree that the the figures for how many Americans know about bitcoin is far too high especially at 48% there is no way that is correct at all as I know many people who when bitcoin is mentioned to them they always end up asking me what it is leaving me to have to try and explain. The amount of people that actually know about bitcoin is a lot less than many may think.

[Balls]

"Only 48% of American adults know about bitcoin"

Stupidest phrase I've ever read^^

Indeed. The figure will be no where even near that. In my opinion it doesnt matter how many do know now, but how many will in the future.

Even though BTC is scalable, the amount of BTC availlable, would remain a problem in my opinion.

 

I don't think this is a problem in my opinion. If it were ever to get where the demand outgrows the supply, it just means smaller denominations will be worth more, which is great news for us. I think bitcoin is ready for the Major Leagues. I really don't see any real problems at the moment, though I guess only the future will tell but it looks bright to me.

Agreed. The future seems very brighter because of bitcoin. It's very exciting to see where this revolutionary technology can go and take us with it. I'm glad to be involved and I think those unaware of bitcoin now will wish they got involved soon enough.

[Fraxinus]

I don't believe these figures are true.It seems a lot exaggerated to me.

[Jesu]

I think we really need to define what ready means. I think bitcoin will enjoy a natural growth and adoption slowly over time. More merchants and charities and services seem to be springing up daily, not to mention numerous regular people just getting involved with it somehow. Just keep spreading the word and we'll get there eventually.

[will_see]

may be not 500K people own btc but there are 500K wallets they mean?

[hannscryo]

may be not 500K people own btc but there are 500K wallets they mean?

The wallets are impossible to be counted and the addresses generated are much more than 500k.

[thimo]

I think if bitcoin finds a way to stop the possibility of 50% attacks, truly decentralizing mining, it will be ready.

[iluvpie60]

Bitcoin is a cryptocurrency that is now about five years old and there are more than a few experts speculating whether or not Bitcoin is ready for the Big Leagues or whether Bitcoin is robust enough to handle the workload of an entire national or global economy. But before we can answer that question we must first determine the hurdles still in front of the nascent digital currency. If Bitcoin has what it takes to overcome these challenges, then it could very well be ready for the spotlight.

Meeting the Challenges

There are a couple of important points that we need to remember. If Bitcoin is ever to become a mainstream currency at least one of the major economic nations will have to accept it as such and the truth is that this is not going to happen without regulations being attached to that recognition. There are several reasons for this:

• The government has a duty to protect consumers
• The government has a duty to prevent crime or criminal activity
• The government has a need to track money for tax purposes

But there is another reason as well. Regulations, especially in the financial industry, are often a matter of who has the best lobbyist. Laws are passed almost daily that favor one part of an industry over another or one industry over another. One of the main reasons for the 2008 economic crisis was the US deregulation of the banking industry, a problem that still has not been fixed.

The financial industry might see a way to make money with Bitcoin, but on the other hand if allowed to remain as is, Bitcoin could cost supplant the industry costing it tens of billions annually in transfer and account fees.



The Propaganda Wars

If you want news about Bitcoin you have to search for virtual currency focused media outlets. While the mainstream media certainly dabbles in Bitcoin, their coverage usually focuses on the negative aspects of Bitcoin’s growth such as criminal activity or a big loss by customers from a failed exchange.

A March poll by an online survey taken by Harris Interactive on behalf of California-based Yodlee, a self-described personal finance data platform, revealed that only 48% of American adults know about Bitcoin. And it is no secret that most of them get their news only from the major news outlets. Bitcoin’s public image will certainly suffer if this trend continues with only one side of the story is being reported.

A recent article in Bitcoin magazine illustrates the point perfectly:

“[…] We are distracted. Of 100 people personally polled, most people could not actually explain or define Bitcoin to me, but they could tell me all about how it “went bankrupt in Japan,” how “Bitcoin’s CEO committed suicide,” and how “the bank got robbed and they went under.” Like it or not, the majority of people are still convinced by 30-second television bits that focus on the 1% of “bad” news. And why would these news clips focus on anything else?”

But many Bitcoin startups are engaging with their communities. The Bitcoin Cup for instance is a charity centered at the 2014 World Cup that raises money for local communities by taking Bitcoin donations. Bitcoin clubs are springing up at universities all over the world, as are Bitcoin ATMs and this is before any countries have backed Bitcoin officially.

As Bitcoin gains in popularity, the corresponding news will also shift towards a more positive tone, which we are already seeing with headlines announcing major companies accepting Bitcoin and venture capitalists pumping money into the new economy.

....

http://cointelegraph.com/news/112259/op-ed-is-bitcoin-ready-for-the-major-leagues

bitcoin is kind of ready for the big leagues. it is but it isnt at the same time. some changes could be made to confirm transactions faster, i understand though most vendors accept 0 confirms which is a fine way of doing it, but even then sometimes the nodes dont broadcast as fast as they usually do. a 0 confirmation transactions for me one time took a few minutes somehow.