Wednesday, December 04, 2013

Interesting comment on Bitcoin

....the exponential growth that is seen in BTC is observed in both bubbles and to network technology adoption.

You think it is the former. I think that it is much more likely that we are looking at the adopti on of a fundamentally new network technology. We are already seeing it develop an ecosystem and secondary uses (e.g., proof of existence of documents at a given time by inserting info into the public blockchain). Moreover, the ordinary transaction trades are increasing exponentially along with the speculation, and this is despite the massive deflation it is experiencing, which ordinarily depresses transactions in a currency.

BTC may be supplanted by another better currency, or may succumb to one of the many upcoming hurdles it faces. But it is also providing real value as a global, essentially frictionless and fee-free way to transfer funds around the world (and potentially eating the bank's lunch on the funds transfer biz.).  

Business Insider

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