Do you see a future in cryptocurrency?

[T_Yamamoto]

So I don't really exist here anymore, but I have a simple question. Do you see a future in cryptocurrency? Now this doesn't have to be about Bitcoin, Litecoin, Dogecoin, Darkcoin, Vertcoin, etc etc etc, but rather, the existence of the idea of cryptocurrency. Will it just die in a fire or will companies make use of the technology driving it?

Thanks, Takumi

Edit: From my viewpoint, cryptocurrency is here to stay, yes, however, people will benefit greatly from the technology. This would be the use of the blockchain for anything ranging from faster bank transactions to using it as a way of voting.

EDIT: My topic now revolves around the use of the blockchain. There are numerous uses for it and I see a future in the use of it. Coins and that matter does not matter or pertain to this paper. The blockchain can be used for infinite number of applications ranging from encrypted email, storage, voting, etc

 

[lxskllr]

Yup, cryptocurrency is here to stay. It may not ever be a primary financial device, but it'll be around.

 

[darkewaffle]

About as much as Latin. There's enough of it out there that it ever dying completely is pretty unlikely.

 

[Appledrop]

I dont have confidence in the alternative cryptos but i'm sure Bitcoin will be here for years to come and its adoption increase steadily. There are strong advantages to a merchant being paid in bitcoin, a reason why for example newegg has recently been offering steep discounts to people who pay in BTC. I also think in the long run the price of bitcoin will increase substantially given there is a limit of 21 million coins in existence.

 

[TwiceOver]

Yes, but when the real one that comes out. Bitcoin was just a test.

 

[DaveSimmons]

Only as a tiny niche for cyber-rebels fighting "the system" and people who bought tulips in a previous life.

 

[Crono]

Yes. Cryptocurrency makes sense not just because it's digital, but because of the underlying strong encryption and verification behind these currencies. It's already clear from all the credit card fraud, large-scale theft of credit card numbers, and hacking/theft of other valuable data that traditional currencies just in digital form isn't the long-term solution. And it doesn't look like we're going to go back to paper-only anytime soon, so the transition to cryptocurrencies - at least as a vehicle of currency exchange - makes sense.

Add to that how terrible banking systems are right now, especially for things like remittance where people have to wait too long and/or pay too much to send money internationally. Bitcoin, Darkcoin, Litecoin, Ethereum, etc might not be the currencies we end up with 5 years from now, but it's early days still.

 

[Hugo Drax]

Imagine if one day a loaf of bread costs 100 dollars, the next day it costs 5 dollars, then some other day it costs 300 dollars and then 10 cents for a loaf of bread a week later, and on and on and on with the price swings ........

How useful is that as a currency? That is the issue. It's never gonna become anything but a niche speculators play.

 

[IronWing]

I think it will come back and become the dominant means of making payments. It will be developed by a consortium of banks under the auspices of the central banks. It will be adopted as the hacking financial systems costs the banks too much money. The perfect bread crumb trail created by cryptocurrencies will delight governments and big data miners There will be no revolution.

 

[mmntech]

The advantage of having a currency supported by a central bank is that money is backed up by the nation's assets and resources. That's what ultimately gives a money value.

BTC failed because it was being traded like a commodity. It's value wasn't stable enough to use it to exchange goods as services. Nor did it have any real assets attached to it. It became in essence a pyramid scheme. Not to mention the complete lack of protection in the event an exchange went under. If your bank fails, you have depositor's insurance provided by the state. When Mt. Gox went under, people lost everything they had put into it.

I like the idea of a single global currency that's accepted along side individual national currencies. However, for cryptocoin to work, it has to be backed by a corporation, group of states, or banks. I can actually see Google or Apple pulling it off.

 

[lxskllr]

BTC failed because it was being traded like a commodity. It's value wasn't stable enough to use it to exchange goods as services. Nor did it have any real assets attached to it. It became in essence a pyramid scheme. Not to mention the complete lack of protection in the event an exchange went under. If your bank fails, you have depositor's insurance provided by the state. When Mt. Gox went under, people lost everything they had put into it.

Failed? btc is still going strong, and it's adoption rate is increasing. Some dumbass gamblers losing money hasn't hurt its use a currency. Gamblers lose; usually... The ones that don't draw the losers in with the promise of free money. That's all peripheral to use a cryptocurrency though.

 

[DrPizza]

Yes. Cryptocurrency makes sense not just because it's digital, but because of the underlying strong encryption and verification behind these currencies. It's already clear from all the credit card fraud, large-scale theft of credit card numbers, and hacking/theft of other valuable data that traditional currencies just in digital form isn't the long-term solution. And it doesn't look like we're going to go back to paper-only anytime soon, so the transition to cryptocurrencies - at least as a vehicle of currency exchange - makes sense.

Add to that how terrible banking systems are right now, especially for things like remittance where people have to wait too long and/or pay too much to send money internationally. Bitcoin, Darkcoin, Litecoin, Ethereum, etc might not be the currencies we end up with 5 years from now, but it's early days still.

I lose my credit card, I call the credit card company and get a new card. Something happens to my bitcoin wallet, bye-bye. To a large degree, it's little more than a pyramid scheme. It makes anonymous trades & sales very easy. I suspect for that reason alone, it'll eventually draw plenty of scrutiny & be banned, much the same as those online casinos were shut down.


A currency based on, "I turned my computer on. It ran a program 24/7 for a few weeks. Now, I'm rich!" Give me a break.

 

[Crono]

I lose my credit card, I call the credit card company and get a new card. Something happens to my bitcoin wallet, bye-bye. To a large degree, it's little more than a pyramid scheme. It makes anonymous trades & sales very easy. I suspect for that reason alone, it'll eventually draw plenty of scrutiny & be banned, much the same as those online casinos were shut down.


A currency based on, "I turned my computer on. It ran a program 24/7 for a few weeks. Now, I'm rich!" Give me a break.

You think the money people steal magically gets replaced by the credit card companies from their private money trees? Storing Bitcoin is safe when done right, especially when employing encryption, cold storage, and/or multiple addresses on different machines, versus hacking into someone's bank account or skimming their cards. Credit card fraud, meanwhile, is a huge problem and increasingly large breaches of retailers means tens of millions of numbers are stolen at a time. This might not directly impact the perfect, never-carry-a-balance ATOT ballers, but the credit card companies and banks indirectly pass on the cost to at least some of their customers. Bitcoin has gotten some bad press because of failures like Mt. Gox, but newer, better run businesses are doing security right, and personally securing your own wallet is entirely doable.

If you lose your Bitcoin wallet because of a computer crash or lost hardware, guess what: unless you absolutely didn't care about backup, it's far easier to replace that wallet if you have the paper wallet/private key than a lost credit card. That private key can be stored safely, especially if you leave out some characters that you've memorized or otherwise conceal the key. Takes seconds to replace versus days waiting for a replacement credit or debit card.

Mining is just one way to generate cryptocurrency. There's nothing stupid about it; you don't generate a massive amount of wealth from simply having a computer, it takes a lot of resources and time to mine effectively (excluding those who mined early). In that way it isn't much different from literal mining for gold or precious metals; no one who has actually mined for any significant amount of time expects to get rich overnight, not without the resources or equipment to do so. There are also cryptocurrencies like CureCoin or Gridcoin, which seek to put that computing power to good use.

Bitcoin and cryptocurrency isn't some pyramid scheme. You really must have no idea of the level of interest and development going into cryptocurrency in Silicon Valley and New York. Anyone who undestands how the technology works also realizes how ingenious from a technical perspective Bitcoin is, and even if it isn't the ultimate form of cryptocurrency, the technology isn't going to disappear anytime soon. I would think someone who has an interest in mathematics would at least appreciate the necessity of strong cryptography in the financial sector, not to mention the other kinds of transactions (e.g. contracts, data storage, etc) decentralization and blockchains enable.

There's already a more anonymous payment method than Bitcoin already, and it's widespread: it's called cash. Even if Bitcoin or altcoins like Darkcoin are made completely secure and anonymous, it's not as if the NSA, FBI, or other law enforcement agencies don't already possess tools to investigate criminal organizations or other illegal activities, and for the most part (excluding hacking to some degree) almost all crimes involve some physical aspect that can be tracked, traced, or monitored, besides directly "following the money". Bitcoin is actually more transparent than our current financial system because of the blockchain, even if you or I can't readily associate each transaction with a specific person individual or organization. The "online casinos" comparison is a bad one because gambling is illegal except when it's run by the state or on reservations, whereas Bitcoin and cryptocurrencies are perfectly legal. Even the IRS put out guidelines on Bitcoin, so it's clear at this stage that at least the U.S. government considers it as property, if not a true currency.

Have you ever tried funding a PayPal or Google Wallet account from your bank? It takes days. There's no reason why what is ostensibly your money should take that long to move - not in the digital age. They aren't sending that money via horse and carriage, you know. Sending money abroad is also unnecessarily expensive. Banks and other financial services companies charge too much in fees simply because they can and there was no alternative for consumers. Now with Bitcoin and other cryptocurrencies you can send your friend or family member money across the globe in a matter of minutes (or hours, on the higher end) with zero cost (or a miniscule network transaction fee to speed things along), and verify receipt of that payment through the blockchain. How is that not a significant and valuable technology?

 

[trungma]

IMHO ease of use is what is preventing crypto currencies from becoming mainstream. If you make it easy to use then you will be introducing the same problems you have with regular currencies so what is the point? Maybe in a few generations where everyone is much more tech savy.

 

[BoberFett]

Apples
0.00000000000000000473 BTC per pound


Yeah, I see that catching on any day now.

 

[lxskllr]

IMHO ease of use is what is preventing crypto currencies from becoming mainstream. If you make it easy to use then you will be introducing the same problems you have with regular currencies so what is the point? Maybe in a few generations where everyone is much more tech savy.

Ease of use will ruin it's usefulness to me. I don't want regulation, protection, or anything else. It's currently digital cash for the most part, and that's the way I'd like it to stay. I don't need to use it everywhere. I just want it to be a solid alternative to spy cards, and central scam companies(Paypal).

 

[Crono]

IMHO ease of use is what is preventing crypto currencies from becoming mainstream. If you make it easy to use then you will be introducing the same problems you have with regular currencies so what is the point? Maybe in a few generations where everyone is much more tech savy.

More online retailers accepting Bitcoin, increased prevalence of Bitcoin ATMs, and cryptocurrency debit cards will do it in time. Companies like Bitpay are making it easier for businesses like NewEgg to start taking Bitcoin.

 

[trungma]

More online retailers accepting Bitcoin, increased prevalence of Bitcoin ATMs, and cryptocurrency debit cards will do it in time. Companies like Bitpay are making it easier for businesses like NewEgg to start taking Bitcoin.

So nobody can steal that card and use it?

 

[Hugo Drax]

Failed? btc is still going strong, and it's adoption rate is increasing. Some dumbass gamblers losing money hasn't hurt its use a currency. Gamblers lose; usually... The ones that don't draw the losers in with the promise of free money. That's all peripheral to use a cryptocurrency though.

Seriously how can you use it as a currency when the valuation of the currency swings like cattle futures.

Bread today 100 bitcoins, tomorrow it might only cost 50 bitcoins etc..

Just imagine if the USD would swing like the way bitcoins do, it would wreak havoc.

 

[Crono]

Seriously how can you use it as a currency when the valuation of the currency swings like cattle futures.

Bread today 100 bitcoins, tomorrow it might only cost 50 bitcoins etc..

Just imagine if the USD would swing like the way bitcoins do, it would wreak havoc.

a) It has stabilized more or less at around $500 a bitcoin

b) Even if it is volatile, that doesn't mean it can't survive as a currency. The U.S. dollar may be the most stable currency, but that doesn't mean the (less stable) currencies of other countries aren't usable as currencies.

c) It will grow: any currency or market is subject to swings like that when immature. That doesn't mean it can't grow or develop as more individuals and organizations provide balance.

 

[Crono]

So nobody can steal that card and use it?

It's a debit card. You load it with funds. For safety you obviously keep the majority of coins in your wallet and keep whatever amount you feel necessary in the card for daily use or specific purchases.

It's still in pre-order stage, though, and they aren't the only ones working on a card. There are some cool standalone wallet devices in the works, too, as well as existing wallet apps for smartphones.

 

[DrPizza]

It's a debit card. You load it with funds. For safety you obviously keep the majority of coins in your wallet and keep whatever amount you feel necessary in the card for daily use or specific purchases.

It's still in pre-order stage, though, and they aren't the only ones working on a card. There are some cool standalone wallet devices in the works, too, as well as existing wallet apps for smartphones.

So, what's stopping some hacker from gaining access to your computer and loading the funds for you, then spending them? I'm covered if someone does that with my debit or credit card.

 

[halik]

Pushed by tiny minority of tech libertopians with minimal grasp of economics. It's not good currency or a unit of account because it's deflationary, because it's not backed by anything, it's highly volatile, has no recourse during loss and it's not very time-efficient for transactions.

Also as for the wall of text response to "if lose my debit/credit card", the point you miss entirely is I have full recourse and zero liability. How the bank handles those issue is not my problem and you'd have a very good argument / be pretty stupid to come up with reason to assume that liability yourself. It's akin to self-insuring your $100K house when your net worth is $200K.

FYI the reason why it costs so much money/time to move money around banks is compliance; aka all the regulation that makes sure magic the gathering enthusiast doesn't disappear with your money or you're selling gulfstream 5s and MANPADs to certain sinaloa enterprises.

 

[Crono]

So, what's stopping some hacker from gaining access to your computer and loading the funds for you, then spending them? I'm covered if someone does that with my debit or credit card.

Best practices to protect against hacking is the first line of defense. Another would be to not have all your eggs in one basket, i.e. have more than one wallet (easy enough to have one on smartphone, desktop, tablet, etc).

On top of that, companies like Xapo are starting to use insurance for coins stored on their end. They assume liability: http://help.xapo.com/categories/6680-Insurance/questions

But the cost for insurance - whether it's coming from credit cards insuring you against fraud or these new Bitcoin service companies - is built into fees. I'd rather protect my coins myself and not pay those fees (the same way anyone would with cash in their possession) but of course with large amounts of money I can see the need for insurance.

 

[Crono]

Pushed by tiny minority of tech libertopians with minimal grasp of economics. It's not good currency or a unit of account because it's deflationary, because it's not backed by anything, it's highly volatile, has no recourse during loss and it's not very time-efficient for transactions.

Also as for the wall of text response to "i lose my credit card", the point you miss entirely is I have full recourse and zero liability. How the bank deals with that issue is not my problem, nor do i want that to be my problem.

Bitcoin isn't inherently deflationary (those who claim it is assume continued hoarding, and dismiss the divisibility of a single Bitcoin); it's decentralized and I don't see that it actually needs a single government or entity to back it; the volatility problem is going away (but is an problem with many "real" currencies, anyway); and insurance is starting to be offered for online wallets like through Coinbase, Xapo and for merchants using payment gateways like BitPay. The reason large companies are starting to accept Bitcoin is precisely because it's trending in the right direction in all these areas, but of course there's a lot of work and growth to be done. No one is claiming any cryptocurrencies are a mature financial platform yet.

You do have a point about it not being time-efficient (unlike cash) but that's where Bitcoin debit cards - and eventually credit cards - offered by financial service companies will come in. Even with regular cards you are waiting for a transaction to "post", but with Bitcoin that verification happens in a matter of minutes or a few hours at most. You should have the option to either pre-load a Bitcoin card, or with a Bitcoin credit card a company will absorb the risk of a transaction not clear confirmations (they would probably do what credit card companies do and screen people using credit checks, run risk assessments per transaction, limit transaction size, etc).

I'm just hypothesizing here, as Xapo has just started to ship their debit cards, and I'm not sure of any Bitcoin credit card yet. It's likely to happen in the near future, though.

FYI the reason why it costs so much money/time to move money around banks is compliance; aka all the regulation that makes sure magic the gathering enthusiast doesn't disappear with your money or you're selling gulfstream 5s and MANPADs to certain sinaloa enterprises.

True, but the advantage of Bitcoin lies in automated, decentralized confirmations. Regulations may slow down the process in the future, but starting fresh I think has it's advantages, in addition to the technical advantage of being a purely digital system. There's no risk of "bouncing" a Bitcoin transaction given enough confirmations, which doesn't take long, and right now there isn't the same kind of convoluted system of clearing houses or waiting for the next "business day". I would hope Congress - if they do get around to imposing regulations - would be cautious not to over-regulate, but I'm not an unrealistic "libertopian"... it's entirely possible we end up with a similarly screwed up system. Call me optimistic, though.