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  • A lot of people talk about bitcoin as a new kind of currency, but ignore that talk.

  • Bitcoin is a crappy currency. Dollars are a good currency. The real revolution of bitcoin is as a new

  • kind of payment network, something like Visa or PayPal. Those conventional payment systems

  • are owned and operated by for-profit companies. But bitcoin isnt -- there's no Bitcoin-the-company.

  • Instead, bitcoin is run as a peer-to-peer network. Computers on the bitcoin network

  • process bitcoin transactions by adding them to a shared public register. They call that

  • the block chain. All the computers keep it together. It's as if we were all keeping Visa's

  • records up to date together as some kind of weird volunteer project. You're probably wondering,

  • well what's the point? Why not just pay for things with PayPal or Mastercard like a normal

  • person? And it's a good question. But bitcoin has one big advantage over conventional payment networks.

  • It's an open platform. To become a Mastercard merchant, you have to apply for permission,

  • pay a lot of fees to Mastercard, comply with hundreds of pages of regulations.

  • Bitcoin is different. Anyone can use it. It's free.

  • And there are no rules limiting what bitcoin-based services can do.

  • An open technology platform like this can become a hotbed of innovation.

  • Think about the internet. People were as baffled by the internet in the 1980s

  • as they are about bitcoin today. The internet was unusable then.

  • It seemed ridiculous that anybody would ever find anything useful to do on it.

  • Eventually, that freedom allowed people to build great companies like Amazon and Google and Facebook.

  • The buzzword here is "permissionless innovation."

  • You can do cool things without any central authority being able to tell you no.

  • In the same way, bitcoin can become a platform for building a new generation of

  • financial services, like international money transfers that are faster and cheaper than Western Union,

  • better security for everyday purchases, and perhaps new services that aren't

  • even possible with conventional payment networks. We don't know what this stuff will be.

  • But now that bitcoin is here, we're going to find out.

A lot of people talk about bitcoin as a new kind of currency, but ignore that talk.

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B1 US Vox payment currency conventional paypal platform

How bitcoin is like the internet in the 80s

  • 90 6
    Samuel posted on 2018/01/11
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