Why We Should All Hope Bitcoins Go Mainstream - InformationWeek

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Why We Should All Hope Bitcoins Go Mainstream
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Lorna Garey
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Lorna Garey,
User Rank: Author
2/26/2014 | 10:01:07 AM
Big, big money
Establishing a competing payment system to challenge MC/Visa seems akin to taking on the Comcast/AT&T duopoly - prohibitively expensive and with such a regulatory obstacle course than only an entity on the scale of Google or Amazon could really make a go (Google Fiber).

Even PayPal and Square can be pricey for small businesses. On the downside for cybercurrency, however, are the sometimes wild fluctuations. An SMB accepting payment for your sandwich in bitcoin can't be sure that next day, it really gets the full amount. Do you see any cybercurrency addressing that issue?
Lorna Garey
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Lorna Garey,
User Rank: Author
2/26/2014 | 11:10:24 AM
Re: Big, big money
Right, that's my point about fluctuation. However, if Bitcoins were more mainstream, why would you NEED to exchange them back to dollars? You as the deli owner would simply pay your bread supplier with the bitcoins you earned selling sandwiches.
Lorna Garey
50%
50%
Lorna Garey,
User Rank: Author
2/26/2014 | 11:10:24 AM
Re: Big, big money
Right, that's my point about fluctuation. However, if Bitcoins were more mainstream, why would you NEED to exchange them back to dollars? You as the deli owner would simply pay your bread supplier with the bitcoins you earned selling sandwiches.
DDURBIN1
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DDURBIN1,
User Rank: Apprentice
2/26/2014 | 1:14:14 PM
Nothing backs Bitcoin
"Think bonds, stocks, and business and national agreements: They all use large sums of extant reserve currency to secure relations and stabilize trade."  If you believe a Bitcoin is in this category you are very mistaken.  There is much more than just "extant reserve currency" behind these to secure them.  For example, bonds support public works project backed by governments.   Stocks support business endeavors backed by assets and captial.  What backs Bitcoin in a similar manor?  Nothing. 
Lorna Garey
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50%
Lorna Garey,
User Rank: Author
2/26/2014 | 3:03:22 PM
Re: Nothing backs Bitcoin
Governments certainly seem to see cybercurrency as a threat, above and beyond the possibilities for illegal activity. The US and Japan are investigating Mt. Gox and will, I imagine, do what they can to maintain the status quo.
moarsauce123
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moarsauce123,
User Rank: Apprentice
2/26/2014 | 6:52:52 PM
Backed by what?
The problem with these made up currencies is that they are backed only by virtual hype and nothing else. As quickly as this money from the land of makeblieve appears as quickly - poof - is it gone into digital nothing.


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