Much has been said lately about Bitcoin and all the fuss related to it. The media is full of Mt.Gox news after their spectacular bankruptcy with 600’000 Bitcoins lost. Amidst this noise we should remember that Crypto-currency is not any particular development or business. Crypto-currency isn’t Bitcoin or a fallen exchange. I think Crypto-currency is an idea rooted in freedom. It’s had a bad reputation from the beginning when people thought of it as a “secret money” to buy illegal things. After a few years, though, it seems like more and more people are starting to notice its utility. In fact, all of the media noise that has appeared recently, be it positive or negative, might just be a telltale sign that the rise of crypto-currency is inevitable.
The great economist and Nobel Prize winner Milton Friedman, speaking many years before Bitcoin appeared, said these prophetic words:
I think the internet is going to be one of the major forces for reducing the role of government. The one thing that’s missing but that will soon be developed is a reliable e-cash.
At the moment it seems popular belief is that Bitcoin is in late stage of a tragic downfall, but my opinion is opposite. On the contrary, it seems to be in a very early stage of inception and yet only a few choose to acknowledge this. For example, BTC.sx is expanding rapidly and an Australian Bitcoin company is launching a project to deploy hundreds of Bitcoin ATMs. Sure there have been a few industry problems, but with the amount of expansion that is going on simultaneously it doesn’t sound like a downfall.
In a world of lost confidence, persistent money printing and progressing devaluation, the idea of cryptologically secure currency with limited supply is very tempting for the masses who have lost faith in the traditional banking system. As other Noble Prize winner, Al Gore said:
Regulation of money supply needs to be de-politicized
Every time you open your morning newspaper it becomes clearer that when bankers play with money, guy getting hurt in the end is always the “Average Joe.” Let’s not forget that even in the age of internet and fiber optics our banks somehow still manage to maintain horrible charges on international money transfers that still take several days to be proceeded. BTC is a lot easier and cheaper to move, creating the impression of the perfect medium of value.
Throughout history we can see many examples of inventions that haven’t had the warm welcome they so much deserved. For example, Western Union rejected the telephone in 1878 as having “too many shortcomings to be seriously considered as a means of communication.” – said company in its memo. In 1977, chairman of Digital Equipment Corp., Ken Olsen, stated:
There is no reason anyone would want a computer in their home
but 30 years later it was hard to find home without one.
But what if Bitcoin were to really collapse? What would happen to the whole idea of crypto-currency? My guess is ‘nothing’. The idea is about survival as Auroracoin proves. This probably is a next step in cryptocurrency world – a government using it for sake of its own people. Personally, I have no doubts that we’ll see many (positive) surprises with crypto-currency and that the inception process is going on now.
- Denis Borisovsky, PFSOFT CEO