5 ms·

Unfortunately the squiggle trick doesn't work to send $0.20 to that friend in Angola who runs the water and sanitation project? It also doesn't convert to Mpes

Unfortunately the squiggle trick doesn't work to send $0.20 to that friend in Angola who runs the water and sanitation project? It also doesn't convert to Mpesa in Kenya [1] (Bitcoin now does). And wiring $500k to China for that shipment on a Sunday doesn't work either with squiggles or e-payments. [1]: http://www.economist.com/blogs/economist-explains/2013/05/economist-explains-18 http://www.economist.com/blogs/economist-explains/2013/05/ec...

nhaehnle 13y ago
On the other hand, all of your examples could easily be addressed if there was sufficient demand for it. So Bitcoin could be valuable in disrupting payment systems: Step 1: Bitcoin becomes superior to traditional payment systems. Step 2: This becomes relevant enough in the large scheme of things that Bitcoin gets serious adoption outside of speculation. Step 3: Traditional payment providers up their game. Step 4: Traditional payment providers win, because their intrinsic costs are lower (mining is inherently costly and not needed for traditional payment systems). So - there's a buck to be made in Bitcoin, but it's implausible that Bitcoin should remain superior to more traditional systems in the long term (except for illegal purposes).
- alphydan 13y ago
  I fully agree. It's not something traditional payment systems couldn't do (at least in principle. In practice I don't know if they can operate on such low fees). The actual success of Bitcoin over the next decade is a much more uncertain issue.
notahacker 13y ago
Do you know anyone in China that will accept $500k in BTC for real goods and services, or is your Bitcoin example just as hypothetical as the squiggle?
- icelancer 13y ago
  The manufacturer of goods I export from there has taken small six-figure USD transfers solely in BTC, so, yes.

5 ms·

Unfortunately the squiggle trick doesn't work to send $0.20 to that friend in Angola who runs the water and sanitation project? It also doesn't convert to Mpes

by alphydan 13y ago

nhaehnle 13y ago
On the other hand, all of your examples could easily be addressed if there was sufficient demand for it. So Bitcoin could be valuable in disrupting payment systems: Step 1: Bitcoin becomes superior to traditional payment systems. Step 2: This becomes relevant enough in the large scheme of things that Bitcoin gets serious adoption outside of speculation. Step 3: Traditional payment providers up their game. Step 4: Traditional payment providers win, because their intrinsic costs are lower (mining is inherently costly and not needed for traditional payment systems). So - there's a buck to be made in Bitcoin, but it's implausible that Bitcoin should remain superior to more traditional systems in the long term (except for illegal purposes).
- alphydan 13y ago
  I fully agree. It's not something traditional payment systems couldn't do (at least in principle. In practice I don't know if they can operate on such low fees). The actual success of Bitcoin over the next decade is a much more uncertain issue.
notahacker 13y ago
Do you know anyone in China that will accept $500k in BTC for real goods and services, or is your Bitcoin example just as hypothetical as the squiggle?
- icelancer 13y ago
  The manufacturer of goods I export from there has taken small six-figure USD transfers solely in BTC, so, yes.