Bitcoin is still a very young technology, despite the fact that the underlying model has been around for decades. The solution to the problem of double spending was found - a digital certificate can be used instead of money, being sure that no one except you will use it. The prospects for this cardinal shift are still not fully understood, nor are the tools available to take full advantage of these advantages.
New technology implies a new way of thinking, especially if different companies are created on its basis. The first email providers did not understand the product they had been selling for several years. They, just like Bitcoin, needed new and correct thinking. Only after people begin to understand Bikoin will he be able to reach his full potential and spread throughout the world.
Hotmail used different technologies (browser, e-mail) to find the best way to deliver messages - gradually, clients like Outlook Express were supplanted by web interfaces and cloud mail. Bitcoin, a transforming way of remittances is not just an electronic form of money. To consider Bitcoin as money is as absurd as to consider electronic messages as one of the types of mail. One doesn’t just replace the other; the way of sending and receiving messages changes fundamentally. This cannot be called a replacement or improvement of an existing idea or service.
Similarly, Bitcoin cannot be called money, because it is a protocol. Each component of Bitcoin is a text, and, being a text, it is protected by the provisions of the constitution on freedom of speech. If Bitcoin is a protocol, not money, then the banal creation of commodity and stock exchanges that imitate real money is not the only way to determine its price. You are not sending emails to find out the cost of the service - the same applies to bitcoin.
The true nature of Bitcoin is an instant means of payment (despite the fact that it is not money) anywhere in the world. Bitcoin is not an investment, and storing it, hoping for a price increase, is the same as storing an e-mail or PDF file in the hope that their price will increase in the future. It's pointless. Of course, you can store Bitcoin, and its price will really grow, but before it matures, it has a lot of ups and downs.
Despite the fact that Bitcoin cannot be spent twice and each coin is unique, unlike physical objects, it does not have intrinsic value. The erroneous notion of bitcoin that it behaves, like money, is due to the impossibility of double spending. The misunderstanding of the true nature of Bitcoin hides its true essence - its digital nature.
Bitcoin is digital and has all the inherent qualities of information. It lies somewhere in the middle between the goods of the physical world and the digital world of information. It belongs to the digital world, but has the characteristics of both spaces. That is why Bitcoin is often misunderstood and that is why companies that want to work with it need a new approach.
Why is the Bitcoin purchase price on stock exchanges not important to the consumer? If the cost of buying Bitcoin rises to 1 ¢, it will not change the amount of money at the other end of the transfer. If you do not convert Bitcoins immediately after they are received into goods or currency, the cost remains at the end of the transfer, no matter how much you paid for Bitcoin at the beginning of the process.
Imagine this as follows. Suppose you want to send a long text file to another person. You can send it as is, or compress it using an archive. The size of the archived file can be reduced to 87%. If you transfer this idea to Bitcoin, the compression ratio will be the price of Bitcoin on the exchange. If Bitcoin costs $ 100, and you want to buy something for $ 100 in India, then you need to buy 1 Bitcoin to send it to India. If the price of Bitcoin is 1, you will need 10,000 bitcoins to send the same $ 100 to India. This can be expressed as a ratio of 1: 1 and 10 000: 1, respectively.
Whether you use 10,000 or 1 bitcoin, the same cost of $ 100 will go to India. The price of bitcoin is not related to the transferable value, just like the archived files “do not know” about what is inside them. Both Bitcoin and the archive are silent protocols that do their job. As long as the cost of bitcoin drops to zero, it will have the same functionality as at a very high cost. Given all this, it becomes obvious the need for new services that will allow Bitcoin to operate according to its nature.
The existing model of exchanges incorrectly interprets the nature of Bitcoin. Commodity and stock exchanges use a twentieth-century model and try to apply it to bitcoin. Interaction with such exchanges is not very convenient - sometimes users have to wait several days to get the fiat derived from a bitcoin account. Although there are no guilt exchanges here, they represent an obstacle for Bitcoin to act in accordance with its nature.
Imagine: you received an e-mail from another country and you received a notification in the browser bar. After that, you need to submit an application so that the letter will be delivered to you and wait seven days, when it will finally be in your mailbox. The idea is completely absurd, but this is exactly what is happening with Bitcoin right now. Obviously, services that use Bitcoin need to be rethought and revised, and this is a necessary component of success. Therefore, to focus on the price of Bitcoin on exchanges that use the inappropriate model for it is simply not rational.
Bitcoin and the ideas behind it will continue to exist. As the number of Bitcoin users increases, it will grow and eventually reach a critical mass, after which it will begin to expand exponentially on the Internet. When this happens, the right business models will spontaneously appear, in the same way as Hotmail, Gmail, Facebook, cell phones and instant messengers evolved.
In the future, a very small number of people will speculate on the cost of Bitcoin, because even if it is profitable by providing easy-to-use Bitcoin services, you can earn much more. Surely, we can say one thing: speed will lie at the heart of all future Bitcoin business models. Success will be achieved by startups that provide instant transactions. The needs of Bitcoin-based businesses pose many problems. Solving these problems will open up new methods and products that we do not yet know.
Finally, when the fiat currency is gone, everything will be evaluated in bitcoins, there will be no volatility, because nothing except bitcoin will be used for buying and selling. At the moment, in comparison with the fiat currency in circulation, bitcoin can grow very quickly, since its volume is still very small. Its price can rise to incredible values, and then fall again. As it grows larger and gains more mass (prices expressed in Fiats), the number of such deviations will decrease. At the same time, Bitcoin remains the same, it does not change. Its users are changing.
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