Bill Gates 3 problems with BTC

[ChuckBuck]

Just having Bill Gates, founder of Microsoft, talking about Bitcoin is a win.

Having him critical of Bitcoin with 3 specific reasons, is 3 wins.

This is the type of thing Bitcoin can learn from and progress from.  Developers and investors alike will take heed and build whatever company or application is necessary to fix these shortcomings.

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[turvarya]

Poor people cannot currently rely on bitcoin

“The effort to make sure your bitcoin provider isn’t going to lose your money and your understanding of the volatility of bitcoin — I’d hardly say that it’s ready for, you know, poor people to have it go up and down by a factor of two and, you know — ‘Oops, I was at Mt. Gox. Now that’s not good. Now I’m at Bit-whatever.’”

Depends on the country. There are countries where inflation is pretty bad and therefor BTC is a good store of wealth. For countries with smaller inflation, BTC has to be looked at, as an investment. And yes, poor people can not invest, since they have nothing to invest with. That is not a problem with Bitcoin

Lack of transaction reversals

“So that basic technology shows that digital can do these things very cheaply, and the fees that have been building up over time won’t stand up even for small transactions. Now making sure that the thing is fraud-resistant and that money can be refunded – there’s somebody that you call up if you think you transferred to the wrong account or your account balance is not what you’d expect.”

There are already escrow services. Over time they will switch to multisig, which is way more reliable as the random system we are dealing with nowadays. Worst case scenario is to go to court, which is the same today.

Potential Anonymity

“Also governments, for most transactions, will want attribution, that is, the idea of a system where you can’t see — is that drug money, is it terrorist money? Should that be taxed? You’re going to have some tension between the attributed systems like credit card [or] debit card systems where there’s actually a record of who’s engaging and the purely anonymous ones. The one where I see it getting to critical mass, along with the government regulatory support we need is where it’s attributed; where we can see who actually did this transaction.”

If you want to deal with a serious company, they have to look at how to tax it. Same with fiat. The difference is, that you can track BTC via the blockchain, which is an advantage for the government.

[Biodom]

I hate to admit it, but Gates is completely right.

There is no question Satoshi is a genius, many aspects of his innovation are really remarkable, however Gates (who is very good at the implementation level) correctly spots the biggest issue with Bitcoin: that without a regulated third party it's not fit for trade and hard to integrate it in the existing regulated legal and financial structures. No wonder large adopters like Paypal and Microsoft use Bitcoin in a strictly regulated environment where the third parties can verify who is paying for who. In modern societies where drug traders, money launderers and terrorist organizations pose security risk from the state viewpoint only regulated financial instruments will be allowed by law enforcement, and therefore Gates very correctly states that it seems Bitcoin cannot be such financial instrument. What Gates said (despite what the OP states) nothing to do with privacy, it is all about the ability to comply with regulations.

In the meantime ignorant Bitcoin fanboys state that the lack of regulation what Gates points out is the strength of Bitcoin. In fantasy land yes, but in reality it is not.  The reality is that without regulated third parties Bitcoin won't be able to succeed. Only regulated third parties can take Bitcoin to the mainstream ... which completely defies the purpose of the decentralized aspect of Satoshi's great innovation.

The thing is fucked up from wider integration and regulation viewpoint, so it is better we the Bitcoin community and investors listen to smart people like Bill Gates.

the highlighted is pure nonsense because of this
http://www.npr.org/blogs/money/2013/04/12/177051690/most-100-bills-live-outside-the-u-s
look at that growth in $100 bills, which are 2/3 OUTSIDE of US. Americans almost never use $100 bills, but there are $625 billion in circulation.
http://visualeconomics.creditloan.com/the-value-of-united-states-currency-in-circulation/
what do you think these bills are used for?

[Come-In-Behind]

I hate to admit it, but Gates is completely right.

There is no question Satoshi is a genius, many aspects of his innovation are really remarkable, however Gates (who is very good at the implementation level) correctly spots the biggest issue with Bitcoin: that without a regulated third party it's not fit for trade and hard to integrate it in the existing regulated legal and financial structures. No wonder large adopters like Paypal and Microsoft use Bitcoin in a strictly regulated environment where the third parties can verify who is paying for who. In modern societies where drug traders, money launderers and terrorist organizations pose security risk from the state viewpoint only regulated financial instruments will be allowed by law enforcement, and therefore Gates very correctly states that it seems Bitcoin cannot be such financial instrument. What Gates said (despite what the OP states) nothing to do with privacy, it is all about the ability to comply with regulations.

In the meantime ignorant Bitcoin fanboys state that the lack of regulation what Gates points out is the strength of Bitcoin. In fantasy land yes, but in reality it is not.  The reality is that without regulated third parties Bitcoin won't be able to succeed. Only regulated third parties can take Bitcoin to the mainstream ... which completely defies the purpose of the decentralized aspect of Satoshi's great innovation.

The thing is fucked up from wider integration and regulation viewpoint, so it is better we the Bitcoin community and investors listen to smart people like Bill Gates.

100% spot on.

There can be no such thing as 100% decentralization in this world with current technology as frankly everyone is not equal intellectually(Thus a 100% decentralized system could never hope to be the dominant system i.e what some people hope is Bitcoin). But the twist is, Bitcoin isn't fully decentralized, which is a good thing, in fact it's a great thing.

If countries start taking Bitcoin seriously, and banning the creation of exchanges that don't register for money transmitter licenses and comply with regulation etc, then Bitcoin would actually be on the road to stability and security. Of course that only partly fixes the issue, there's still Bitcoin's volatility at hand. However, that issue can also be addressed through adoption i.e the more people are using Bitcoin at a consumer level, instead of hoarding it or using it as a speculative investment, the less volatile Bitcoin's price will become.

Frankly, all the idiots here who oppose regulation are also harming Bitcoin, as regulation is the only way for Bitcoin to reach both a secure and less volatile state.

[jubalix]

I hate to admit it, but Gates is completely right.

There is no question Satoshi is a genius, many aspects of his innovation are really remarkable, however Gates (who is very good at the implementation level) correctly spots the biggest issue with Bitcoin: that without a regulated third party it's not fit for trade and hard to integrate it in the existing regulated legal and financial structures. No wonder large adopters like Paypal and Microsoft use Bitcoin in a strictly regulated environment where the third parties can verify who is paying for who. In modern societies where drug traders, money launderers and terrorist organizations pose security risk from the state viewpoint only regulated financial instruments will be allowed by law enforcement, and therefore Gates very correctly states that it seems Bitcoin cannot be such financial instrument. What Gates said (despite what the OP states) nothing to do with privacy, it is all about the ability to comply with regulations.

In the meantime ignorant Bitcoin fanboys state that the lack of regulation what Gates points out is the strength of Bitcoin. In fantasy land yes, but in reality it is not.  The reality is that without regulated third parties Bitcoin won't be able to succeed. Only regulated third parties can take Bitcoin to the mainstream ... which completely defies the purpose of the decentralized aspect of Satoshi's great innovation.

The thing is fucked up from wider integration and regulation viewpoint, so it is better we the Bitcoin community and investors listen to smart people like Bill Gates.

100% spot on.

There can be no such thing as 100% decentralization in this world with current technology as frankly everyone is not equal intellectually(Thus a 100% decentralized system could never hope to be the dominant system i.e what some people hope is Bitcoin). But the twist is, Bitcoin isn't fully decentralized, which is a good thing, in fact it's a great thing.

If countries start taking Bitcoin seriously, and banning the creation of exchanges that don't register for money transmitter licenses and comply with regulation etc, then Bitcoin would actually be on the road to stability and security. Of course that only partly fixes the issue, there's still Bitcoin's volatility at hand. However, that issue can also be addressed through adoption i.e the more people are using Bitcoin at a consumer level, instead of hoarding it or using it as a speculative investment, the less volatile Bitcoin's price will become.

Frankly, all the idiots here who oppose regulation are also harming Bitcoin, as regulation is the only way for Bitcoin to reach both a secure and less volatile state.

you don't say why to any of your assertions.

[muhrohmat]

well we dont have to thing bill gates the way of technology for money is also implemente by banks all over the world and the btc might do the trick of beeing good also for banks currency if they look at decentralization like bill gates would not go on it becuse the btc its too conected to the eeast crime he does not want to spend time on this method if its depriciated by name BTC=east crime of course we know its not like that its the good people of using btc the makes the coin and the personal power its good soo btc will rise and bill gates or appe will suggest to put the treades of market selling products also in btc currency for those  obiles and computers.

[Netnox]

For the first one. Gotta agree, normal people (non-technology) wont be investing in Bitcoin. Most of them are afraid for the rapid changes in the exchange rate. And.. some of them can't understand how Bitcoin work. Unless Bitcoin is value stable, else, people wont be investing in it.

Volatility, a heaven for the majority of traders.

[Moonpig]

For the first one. Gotta agree, normal people (non-technology) wont be investing in Bitcoin. Most of them are afraid for the rapid changes in the exchange rate. And.. some of them can't understand how Bitcoin work. Unless Bitcoin is value stable, else, people wont be investing in it.

Volatility, a heaven for the majority of traders.

Exactly, it';s this volatility that makes it possible to profit, only people obviously don't like it when it doesnt go the way they want it to but that's part of the game that they need to understand. The hodlers and long term believers don't really care about minor fluctuations.

[thejaytiesto]

For the first one. Gotta agree, normal people (non-technology) wont be investing in Bitcoin. Most of them are afraid for the rapid changes in the exchange rate. And.. some of them can't understand how Bitcoin work. Unless Bitcoin is value stable, else, people wont be investing in it.

Volatility, a heaven for the majority of traders.

Exactly, it';s this volatility that makes it possible to profit, only people obviously don't like it when it doesnt go the way they want it to but that's part of the game that they need to understand. The hodlers and long term believers don't really care about minor fluctuations.

Yup but we eventually need the price to stabilize otherwise we can never use it on daily shopping.

[madmax6688]

At least he's not toting it as a ponzi scheme with fake magic money...

He's saying it fuels the terrorist economy. Much better?

[Father Ted]

For the first one. Gotta agree, normal people (non-technology) wont be investing in Bitcoin. Most of them are afraid for the rapid changes in the exchange rate. And.. some of them can't understand how Bitcoin work. Unless Bitcoin is value stable, else, people wont be investing in it.

Volatility, a heaven for the majority of traders.

Exactly, it';s this volatility that makes it possible to profit, only people obviously don't like it when it doesnt go the way they want it to but that's part of the game that they need to understand. The hodlers and long term believers don't really care about minor fluctuations.

Yup but we eventually need the price to stabilize otherwise we can never use it on daily shopping.

Why not? It's not idea but people are still using the currency now even despite it's fluctuations. Merchants will be protected by using a payment processor so there's no excuses there.

[muhrohmat]

btc its not that depreicatible as terrorism its just a bit of crime and left wing crime associated in east but theress lots of good people using it bill gates and other capital economy could do a bit of btc aproval for it to go as fast trasnactions in money.

[ronaldo40]

For the first one. Gotta agree, normal people (non-technology) wont be investing in Bitcoin. Most of them are afraid for the rapid changes in the exchange rate. And.. some of them can't understand how Bitcoin work. Unless Bitcoin is value stable, else, people wont be investing in it.

yes true, especially the unemployed, will only look for bitcoin for free every day, without ever buy bitcoin to invest

[Drummer]

i know bill gates can create new amazing crypto if he want
but i think h doesn interest with money

[colinistheman]

One of Bill Gates' mistaken ideas about bitcoin is in regards to transaction irreversibility.

The following video is THE best video response I've ever seen to the tiresome complaint that bitcoin transaction irreversibility is a problem. Andreas debunks this claim in a few minutes with finesse.

Bill Gates needs to watch this clip so he gets we're dealing with a flexible *protocol* which is programmable and can offer reversals if needed.

https://www.youtube.com/watch?v=XsW_bsFAWgw#t=245

This is why Bitcoin is more powerful than anything that has been seen before.

How do we get him to watch it?

[manselr]

One of Bill Gates' mistaken ideas about bitcoin is in regards to transaction irreversibility.

The following video is THE best video response I've ever seen to the tiresome complaint that bitcoin transaction irreversibility is a problem. Andreas debunks this claim in a few minutes with finesse.

Bill Gates needs to watch this clip so he gets we're dealing with a flexible *protocol* which is programmable and can offer reversals if needed.

https://www.youtube.com/watch?v=XsW_bsFAWgw#t=245

This is why Bitcoin is more powerful than anything that has been seen before.

How do we get him to watch it?

He's not going to like Bitcoin because of the anonymity no matter what.

[colinistheman]

One of Bill Gates' mistaken ideas about bitcoin is in regards to transaction irreversibility.

The following video is THE best video response I've ever seen to the tiresome complaint that bitcoin transaction irreversibility is a problem. Andreas debunks this claim in a few minutes with finesse.

Bill Gates needs to watch this clip so he gets we're dealing with a flexible *protocol* which is programmable and can offer reversals if needed.

https://www.youtube.com/watch?v=XsW_bsFAWgw#t=245

This is why Bitcoin is more powerful than anything that has been seen before.

How do we get him to watch it?

He's not going to like Bitcoin because of the anonymity no matter what.

That's strange to me.. is he part of the government or something?

[Meuh6879]

i have 3 problems with Gates, too ...

1) Windows Me
2) Windows Vista
3) Windows 8

[cellard]

For the first one. Gotta agree, normal people (non-technology) wont be investing in Bitcoin. Most of them are afraid for the rapid changes in the exchange rate. And.. some of them can't understand how Bitcoin work. Unless Bitcoin is value stable, else, people wont be investing in it.

Volatility, a heaven for the majority of traders.

It is, but its not for the average joe whose wants a steady currency that doesnt change a lot. Thats why I think Bitcoin is egold and not emoney.

[cozk]

I only see one problem here. Taking advice from someone that represent the current dominant financial paradigms.

This guy is the embodiment of the current financial system. Why would he want to lose power to bitcoin ? Of course he will gently tell you that bitcoin is shit.