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The money use case is cool, but only really that helpful if you want to evade the law. A much broader use case is building applications. This will not work for
by clemensley 6y ago
The money use case is cool, but only really that helpful if you want to evade the law. A much broader use case is building applications. This will not work for all apps (eg social networks that produce massive amounts of data), but many apps in the business world (eg accounting systems) do not produce a lot of data.
The advantages are that it will be easier to build apps this way because no outside server is needed. This is great for prototyping and bootstrapping. Apps built on Bitcoin have other advantages like maintaining data provenance (useful for audit purposes), managing data ownership (who is allowed to update a piece of data), or storing cryptocurrency atomically with data.
Frameworks along these lines are starting to pop up. One example is the Bitcoin Computer (http://bitcoincomputer.io/ http://bitcoincomputer.io/): It allows you to write an app entirely as frontend code and gives you simple provisions for persisting data on chain with a single line of JS code.
- ballenf 6y agoI don't get the dogma that bitcoin as a currency is all about lawlessness. What if I just want to make an electronic transaction and maintain the same privacy I have with physical currency? Am I an outlaw because electronic transactions are usually completely tracked? (And I understand that physical currency transactions do not have absolute privacy. I can be physically tracked or recorded, etc. Just as my computer can be bugged before I make a cryptocurrency transaction.) My fear is that the answer very soon will be: only criminals want to use physical currency -- what are you hiding?
- someguyorother 6y agoI think it comes down to convenience. Paying in bitcoin is significantly more of a hassle than paying with a card, and it has much less recourse for a buyer that isn't careful (e.g. no chargebacks). Thus few people use bitcoin just as a means of exchange unless they have some specific reason for doing so that outweighs the inconvenience. You thus end up with a fairly heavy concentration of criminals, fans of the ideology (libertarians and goldbugs), and very privacy-minded people. Of these three categories, the former draws a lot more attention than the other two, and thus bitcoin becomes associated with crime. Physical currency is still convenient, and the state can go after fraudsters and thieves, so there's more recourse as well. In addition, it's the original form of money, so it has an established user base (so to speak) who aren't criminals. A closer analog to bitcoin would be very large denomination bills, which are both risky to carry and has little wider use; and, indeed, the EU is retiring its 500 euro note on suspicion it's mainly used by criminals.
- clemensley 6y agoWhere the legal money use case really shines is in micro transactions. If the amount you want to send is really low it makes a difference if your fee is 30 cents on paypal vs a fraction of a cent with bch, bsv, or ltc. The problem is that it is very hard to monetize apps with micropayments: you need a massive user base because you only earn a fraction of each micropayment. It is hard to convince a massive user base to go through the hassle of obtaining Bitcoin. I do not want to discourage the use of Bitcoin for that, I think there will be awesome businesses built on micropayments and payments in general. I just want to point out that there is an opportunity to use Bitcoin to make application development faster and cheaper.
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- hydrogenbonds 6y agoReplace "Bitcoin" with "Ethereum" in everything that @clemensley said, and it will make even more sense.
- clemensley 6y agoSince the original post is about Bitcoin I wanted to point out that you can do these things on Bitcoin now. Of course this can be done on Ethereum as well.