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Sooner or later, a trusted financial institution will start to issue USD and EUR as colored coins on the Bitcoin network (or another cryptocurrency). From that
by Hermel 12y ago
Sooner or later, a trusted financial institution will start to issue USD and EUR as colored coins on the Bitcoin network (or another cryptocurrency). From that point on, the volatility risk will be gone, but the benefits of a freely transferrable currency will remain.
With the benefits being: fast (with traditional currencies, settlement takes two days), easy to integrate, and open source. In particular, the latter point can offer a huge strategic advantage. Linux is successful because companies like IBM do not want to depend on Microsoft. Bitcoin can be successfuly for the same reason - namely because big corporations prefer depending on an open standard over depending on a competitor's payment system.
- atmosx 12y agoThe only reason a big corporation would want to depend on a currency without central bank banking (e.g. controlled somehow) is if it owns the largest chunk of that currency, so it can play the role of the central banker as it see fit. When other corporations realize what is happening they will dump the currency in no time and the currency will lose value. The Linux is not controlled by anyone. Any company can build upon it, modify it and do what it needs to do. The comparison between Linux/BTC is extremely flawed!
- Hermel 12y agoThis is not about Bitcoin the currency, it is about Bitcoin the payment system. The currencies used would be the traditional ones (e.g. USD coins), but the payment system would be Bitcoin. Thus, your argument does not apply.
- wcoenen 12y agoI don't think that colored coins will have much success. There is a reason that bitcoin was designed without a fixed exchange rate to any other asset or currency. An issuer of colored coins would be centralized. It would be a weak spot that needs to be trusted and that can be controlled. The benefits of bitcoin would soon be lost.