Bitcoin Adoption – the writings of Falkvinge

In May of 2011, a political evangelist for the Swedish Pirate Party, Rick Falkvinge, posted that he was putting all his savings into Bitcoin, which was trading at the time for $8.30 USD per coin.

https://falkvinge.net/2011/05/29/why-im-putting-all-my-savings-into-bitcoin/

People thought he was crazy, but history has shown it was an astonishingly smart move, with Bitcoin trading at $18,000 a coin today in November of 2020, roughly a 2,100x on his initial investment.

What really caught -my- attention was what he wrote in June 2011, outlined below, which looked at the long term strategy for Bitcoin, and the things it needed to overcome to be adopted.

First, the drivers. What is it making people interested in a crypto currency, why were people using it, what was the motivation?

Bitcoin’s Four Drivers:

9 years later, the world is a different place. Illegal usage, which at one time was more than 80% of the transactions, thanks to Silk-Road and others, has dropped to an estimated 5% or less. International trade hasn’t caught up, but Merchant trade has risen sharply, with merchants like Bitpay (https://bitpay.com/) doing millions of dollars a day for big names like Microsoft, Newegg, Twitch, etc. Even Paypal got in on it, announcing the ability to buy/sell Bitcoin via their service. (https://news.bitcoin.com/paypal-crypto-service-venmo/)

Investment has also exploded, with Wall Street investment firms offering funds, like Grayscale, who, as of this article, holds more than $5 billion in Bitcoin. The Chicago Mercatile Exchange (CME) even sells Bitcoin Futures (https://www.cmegroup.com/trading/equity-index/us-index/bitcoin.html)

With the price threatening the ATH of $20k, even the top 0.1% have noticed. According to a poll this month, 73% of billionaires will invest in Crypto before the end of 2022, or already have. (https://news.bitcoin.com/millionaires-fomo-73-own-bitcoin/)

Another set of challenges that Falkvinge outlined were the hurdles to adoption:

Bitcoin’s Four Hurdles:

While Usability and Transactions raised some valid points, Escrow and Exchanges are far stronger today than they were in 2011.

Escrow Services haven’t taken off as much as exchanges, but there are several active ones today.

  • Bitrated
  • Coinsavr
  • Escaroo
  • IBC Group
  • ItBit Escrow

Exchanges

https://coinmarketcap.com/rankings/exchanges/


So the questions of the day.. Should I buy Bitcoin? How do I buy Bitcoin? If you made it this far, you deserve short answers. 🙂

Unless you have a clear use-case, Cryptocurrency should be looked at as an investment. And like any investment, you shouldn’t risk any money you can’t afford to lose. Don’t mortgage your house, don’t raid your kids college fund, only play with money you won’t miss. At this stage in the game, investing in crypto is just like investing in a stock. There are really smart people who have spent years learning market movements, staring at screens 18 hours a day, who still lose massive amounts of money in the stock market. Trading is a skill you refine with education and practice.

Important – Bitcoin (and others) can be sub-divided down to 8 decimal places. That means you can buy 0.00000001 BTC – which today is $0.00018 USD if you want. you do NOT have to buy a complete coin.

Should you decide you’d like to by some Crypto, you have multiple ways to do it, from the exchanges listed above, to Bitcoin ATM’s. Bitcoin ATM’s?? Yep – there are more than 12,000 ATM’s planet wide, buying and selling Crypto. You’ll pay more in fees than using an exchange, but check the Bitcoin ATM Map, you might be able to just walk into the local mall, insert some cash, and leave with a some fractional coin. Sit on it, watch the market, and enjoy the ride.

-donn

Why Crypto Currencies Matter, and why Banks are scared of them.

If there was any question about why Crypto Currencies could change the world, check out what’s been happening in China.

Between AliPay and WeChat, large percentages of the population are able to shop, send money back and forth, live and exist, without ever involving a bank. Quote : “Western bankers and credit-card executives who travel to China keep returning with the same anxiety: Payments can happen cheaply and easily without them.”.

This is scary to the banks, where only $97.25 of every $100 charged goes to the merchant.. the rest is absorbed by banks, card networks, and payment processors.

 

The more we use crypto, the less banks earn, the more they fight.

Great article found here : https://www.bloomberg.com/graphics/2018-payment-systems-china-usa/ — worth reading.

 

 

Bitcoin is Digital Gold

Timothy Lee, over at ArsTechnica, has a great article today, titled, “It’s time to admit Bitcoin is more than just a bubble.”

But here’s the thing: people have been predicting Bitcoin’s impending demise for years, and they’ve consistently been wrong. Even if Bitcoin were to lose 90 percent of its value in the coming weeks, it would still be worth around $800—a value many people dismissed as an absurd bubble four years ago. If it lost 99 percent of its value, it would be worth $80—a value that would have been considered absurdly high less than five years ago.

Blockchains are an important new technology, and cryptocurrencies are a fundamentally new asset class. Bitcoin, the most popular cryptocurrency, might be overvalued right now, but it might not be. Either way, it certainly isn’t going to suffer an Enron-style collapse.

Couldn’t have said it better myself.. — read the rest of the article over at ArsTechnica

 

 

Dubai becomes the first country to create “official” state CryptoCurrency

Fascinating news, for the first time, a country is creating a Cryptocurrency for official use.

A partnership has been set up to develop and implement emCash, an encrypted digital currency, which people can use to pay for various government and non-government services in Dubai.

According to state news agency WAM, Emcredit, a subsidiary of Dubai Economy, and the UK-based Object Tech Group Ltd will work together to establish contactless payments.

Based on the latest blockchain technology, emCash will be the digital currency in emPay wallet, launched by Emcredit to support contactless payments.

emPay will allow the UAE residents to make varied payments through the near field communication (NFC) option on their smartphones.

 

See the rest of the article here.

 

 

Fidelity is mining Bitcoin?

I guess it was inevitable, but to see it admitted publicly is a surprise to me! Big financial business mining Cryptocoins?

One of Fidelity’s projects is mining bitcoin and ethereum, which Johnson said was started for educational purposes, but now turns a tidy profit. “We set up a small bitcoin and ethereum mining operation…that miraculously now is actually making a lot of money,” she said.

 

Read more about it over at the Quartz Article

 

Bitcoin News from Finland!

Outstanding news for Bitcoin today, from Finland.

“Bitcoin is a monopoly run by a protocol, not by a managing organization. Familiar monopolies are run by managing organizations with discretion to determine and then change prices, offerings and rules. Monopolies are often regulated to prevent or at least mitigate their abuse of power”

 

Finland Central Bank Praises Bitcoin

It’s a jungle out there!

So, it may surprise some of you to know that there are other Crypto currencies other than Bitcoin. One of the most dominant is a coin called Ethereum, which has a feature allowing sub-coins/aka-tokens to be created by anyone. This, in turn has opened up the door to abuse. Take a few minutes to read the article below, and walk the brave new world of digital money with the same care you would your real money. Be safe!

 

The ICO world is full of pump-and-dump schemes — don’t be a victim

Have Bitcoin? Need cash? Coinme can help!

two-way

 

We’re excited to announce the arrival of full 2-way operation on our Bitcoin ATM’s!
The ATM does not scan QR codes, so be sure to deposit your coins to your Coinme Wallet first.

How do I do it?

  1. Deposit Bitcoin into your Coinme Wallet account
  2. Visit the ATM
  3. Click “I want cash”
  4. Receive cash

As always, if you have any questions or comments, feel free to contact us.

Thanks for helping us share Bitcoin with the world.

 

The team at Coinme
800.944.3405
[email protected]
https://www.coinmewallet.com/