Bitcoin is a intriguing idea. Nonetheless, it’s not likely to work with a thriving platform which faithfully takes Bitcoins as a medium of trade.
I feel that no money — possibly no payment method — has become popular without being intimately correlated, almost from birth, using a prosperous platform where the money is a main medium of trade. I believe that the properties of the money are nearly irrelevant — it isn’t important if the money is backed by commodities, while it’s inherently deflationary, or perhaps if it’s highly secure. Rather, the value of the system is the dominant variable on if the platform’s network of exchange could be prosperous.
In the event of national monies, the”platform” is the country itself. When a country declares some type of money to become official legal tender, then that money will fail or succeed depending on the failure or success of the country. The US Dollar is among the most effective monies in the world due to the properties of their United States market. The Dollar triumphed because the United States economy triumphed, not the other way round.
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Consider how small money concept actually matters. This disagreement had been (and in some areas, still is) so angry that you’d have believed that the world would end with no gold standard. Sooner or later, the US Dollar will probably evaporate compared to other currencies, but decline in dominance will not have anything to do with whether or not the Dollar or the recently dominant money is about the gold standard. The properties of this money just don’t matter very much. To believe money features drive the achievement of this market would be to think that the tail wags the dog.
I feel the most prosperous fiat (i.e. worth through announcement of jurisdiction, not through being endorsed by commodities) virtual money so far remains the Linden Dollar, the medium of trade from Second Life. During its summit, the Linden Dollar has been the medium of trade in about US$500 million value of user-to-user trades each year. The Linden Dollar had value due to its guaranteed usability within a stage which L$ holders desired to utilize. Truly successful traders finally expand their usability off-platform, but always stay connected to a booming base stage. (Linden neglected to extend the L$ off-platform, although enabling the base stage to stagnate. Painful.)
In payment methods (which are not as complex than fiat monies ), think about their future and past successful examples. The crucial elements in each these cases are about the expansion and the possessions of the programs, not the properties or theories of the payment methods.
Bitcoin does not have any stage. It cannot become effective only through the energy of its abstract thoughts. Unless there’s main use case, one platform where earn bitcoin for free is the principal medium of trade, Bitcoin will not be widely employed.
