Bill Gates: "Bitcoin Alone Won't Solve Global Payments Challenges"

[darkota]

When computerization gets to the point that we can compare and trade items and services and labor, based on their average value relationship as sported by the whole, worldwide, free trade process, then we won't need fiat or Bitcoin at all. All we will need do is jump on the computer, show what our job is, show that we labored so many hours last week (a showing that is placed there by collaboration with our employer), and we can trade our labor for whatever goods or services we need.

All of this will be encrypted in a blockchain of blockchains, of course. We will be able to remain reasonably anonymous, just like with Bitcoin. For our purposes, we need only see the first entry of an "address" into the blockchain, and the value attached to the last entry. Probably a computer program will be needed to generate the whole operation. It may not be entirely programmable by people.

Parts of the above are being done right now in airline comparisons, and product and service comparisons. The difference will be that there won't be price comparisons. Products and services and labor will actually become the new money. There won't need to be stated divisions of "coin" like a satoshi is part of a bitcoin. Everything will be expressed as a percentage of value of anything else. The whole operation will be entirely decentralized, yet it will act like centralization in the ways that make centralization beneficial.

That won't work. Work hours does not equal worth. How would I trade a 6 hour workday for a new computer? My 6 hour workday is just numbers, it's not like I'm trading an actual product that the seller can gain a profit off(After all, that's their goal, to get a profit). You will still need money.

[Mellnik]

Satoshi Nakamoto is way smarter than Gates Bill could ever be.

[BADecker]

When computerization gets to the point that we can compare and trade items and services and labor, based on their average value relationship as sported by the whole, worldwide, free trade process, then we won't need fiat or Bitcoin at all. All we will need do is jump on the computer, show what our job is, show that we labored so many hours last week (a showing that is placed there by collaboration with our employer), and we can trade our labor for whatever goods or services we need.

All of this will be encrypted in a blockchain of blockchains, of course. We will be able to remain reasonably anonymous, just like with Bitcoin. For our purposes, we need only see the first entry of an "address" into the blockchain, and the value attached to the last entry. Probably a computer program will be needed to generate the whole operation. It may not be entirely programmable by people.

Parts of the above are being done right now in airline comparisons, and product and service comparisons. The difference will be that there won't be price comparisons. Products and services and labor will actually become the new money. There won't need to be stated divisions of "coin" like a satoshi is part of a bitcoin. Everything will be expressed as a percentage of value of anything else. The whole operation will be entirely decentralized, yet it will act like centralization in the ways that make centralization beneficial.

That won't work. Work hours does not equal worth. How would I trade a 6 hour workday for a new computer? My 6 hour workday is just numbers, it's not like I'm trading an actual product that the seller can gain a profit off(After all, that's their goal, to get a profit). You will still need money.

Hey! I was talking in generalities. I don't have the system built. So, you work at Walmart. Your work hour is worth only 25% of a heavy machine operator's work hour. That's part of the way the system would operate.

A person would be a number in the system. He would be an encrypted address. His labor would be coded regarding the value that his employer uploaded to his address from the company he worked for.

After awhile, the way things are rated might change. Job pay scales might become more equal. Until it happens, we won't know what will happen real world. At least at the beginnings of it, people will still use fiat and bitcoin - Bitcoin is a form of fiat.



EDIT: When you check the airlines for prices on the Net, most are at least a little different. Direct value relationships can be also, even for the same product traded in different locations.

[Lethn]

“There’s a lot that bitcoin or Ripple and variants can do to make moving money between countries easier and getting fees down pretty dramatically. But bitcoin won’t be the dominant system.”

Of course Bill Gates would mention a centralised and regulated altcoin, many of the financial elite are out attacking Bitcoin's strengths and claiming it as a weakness. Don't get me wrong, I too think altcoins have a place and Bitcoin won't necessarily be dominant, but it's obvious a large number of people who say this have an agenda.

[cyberpinoy]

Sounds like a compliment to me. 
To me it seems he likes the idea, tech, and believes it fills a need.  He just doesn't believe in btc due to the volatility and some other crap. 
It was such a vague answer that it could be interpreted in countless ways.

Please tell us what part of "But bitcoin won’t be the dominant system." was vague?

[RodeoX]

Well, it won't solve HIS global payment challenges. It has however solved mine. 

[EvilPanda]

wow, scary how everyone turned their backs on Gates after he said that there could be something else beyond Bitcoin, he doesnt need to praise Bitcoin fools he is already the richest man on earth.

Were people supporting Gates in the first place? The opinions I read about him were mostly negative, as he got bored with innovations long ago, but is still asked for opinions about new technologies.
He was an inventor in the 80's, a celebrity in the 90's and 15 years later he's just a rich man who leaves thinking to others and just finances their ideas.

[AtheistAKASaneBrain]

I saw the Jimmy Fallon interview, here is the full interview and at 3:00 he mentions cryptocurrencies:


https://www.youtube.com/watch?v=v2A69Io1VD0

[kenny83]

Bitcoin is better when it can exchange with another concurrency , i will not alone i think

[jacktheking]

Hmm.. I read about this in a blog recently. When Bill Gates say that, Bitcoin sure have a new challenge.. To tell people what Bill Gates said is not true.. Let's see..

[Madness]

Bitcoin is better when it can exchange with another concurrency , i will not alone i think

I disagree here , Bitcoin is better alone but since the other currencies came first , people are trading it for other currencies .
1BTC = 1BTC . That's sad to be honest but well ...

[NeuroticFish]

Bitcoin - and any crypto - needs to be backed with a couple of very big and known payment processors and a couple of insurance companies (insurance against fraud, to offer reverse payments and so on).

Average Joe, when buying goods, will not want to care about multisig. He wants all payment done good and fast.

[Eastwind]

I think he is right, bitcoin alone can't change the future, but it will pave the way to the new generation of payment service.

Bitcoin, together with some kind centralized system such as Paypal which can do transmission reversal and instant transaction (do not need to wait 10 min), is the future.

[Bitcoinexp]

The first is always bound to see through the front-line, predicted and unforeseen problems alike. And bitcoin is the first of it's kind. I agree somewhat with Bill Gate's comment, that the technology behind Bitcoin could be utilized more ideally. Bitcoin has major ups and downs like most other things. But it's a digital currency that has 2 very big problems as said by Bill Gates, that is generally weighing it down. Irreversibility and price fluctuation.

[BittBurger]

sounds like he has plans to pump a new digital currency

http://www.betterthancash.org

-B-

[foxkyu]

"“There’s a lot that bitcoin or Ripple and variants can do to make moving money between countries easier and getting fees down pretty dramatically. But bitcoin won’t be the dominant system.”"

i'm agree with bill gates statement
bitcoin needs at least one or two competitor cryptocurrency
but no one know what will be the other cryptocurrency
and  i'm sure time will tell us

[runningfree]

Does Bill Gates know how Bitcoin will mutate of the next decade? Does anyone?

[DoubleTrouble]

Does Bill Gates know how Bitcoin will mutate of the next decade? Does anyone?

This is a very good point actually. Bitcoin could change entirely within 10 years.

[QuestionAuthority]

Gates is so passive aggressive. I don't think he really believes in Bitcoin at all but the best way to make people believe him is to feign support and then jab at every turn. That's the worst kind of supporter. They're more believable because they really "like Bitcoin" so if they're saying there's a problem it must be true.

[ArticMine]

sounds like he has plans to pump a new digital currency

http://www.betterthancash.org

-B-

This is nothing more that expanding the debit based payment systems to a broader group of people. The key here is: Can a poor, starving, homeless person, accept payment as part of a business transaction using this payment system and then be free to spend these funds anywhere she chooses? More often than not with debit based electronic payment systems the answer is NO. With cash the answer is yes. The answer is also yes with crypto currencies.

I noted that the Coca Cola Company is listed as a private sponsor of this initiative. It is also no secret that the Coca Cola company is an strong supporter of GMOs in food. https://www.change.org/p/coca-cola-stop-funding-anti-gmo-labeling-campaigns. So is is safe to assume that this electronic cash can be used to purchase food that contains patented GMO genes. The real question is can this electronic cash be used to purchase food grown organically with GMO free seeds? We know the answer with cash is yes. The answer with crypto currency is also yes. We debit based payment systems the answer more often than not is no.

Edit: Do ALL vendors at all Farmer's Markets in the United States accept EBT? How about the neighbour selling those extra vegetables she grew in the community garden?