I consider myself an enthusiast of technology. On many occasions, I’ve wildly speculated about emerging technology and expressed unapologetic excitement about certain trends. In general, I have the utmost respect and support for those who share this passion. I don’t always agree with their outlook or speculation, but I get where they’re coming from.
Then, there are Bitcoin enthusiasts. I’ll just come out and say I have mixed feelings about them.
Don’t get me wrong. I don’t want to diminish what a remarkable technology Bitcoin is. It is a complicated and, at times, confusing technology. Even the Wikipedia page only does so much to explain what it is, where it came from, and why it matters. That’s not surprising. There was plenty of confusion about the internet too when it first emerged.
While I don’t consider myself an enthusiast, Bitcoin has sparked my curiosity. I do sometimes look into major news stories and developments surrounding the technology. The fact that it has lasted over a decade and made some people legitimate millionaires is proof enough that Bitcoin has real, tangible value. Those who keep saying that Bitcoin is just a fad or will crash are becoming increasingly scarce.
I’m convinced that Bitcoin, and other cryptocurrencies like it, are here to stay. They’ve proven that they have value in an increasingly digital landscape. As the internet becomes more prevalent and accessible, their role will only grow. That being said, I’m not yet convinced Bitcoin’s role will go beyond a certain point.
Those who say Bitcoin is the future of money are likely talking in hyperbole.
Those who say Bitcoin and the blockchain are the most revolutionary technologies since email are also likely exaggerating.
I don’t doubt for a second that these people believe in what they’re saying. I just haven’t seen enough to warrant that kind of enthusiasm. The issue isn’t as much about the merits of the technology as it is about how it’s being used. I’m not just referring to its role in the illegal drug trade, either.
At the moment, Bitcoin is fairly accessible. If you have a smartphone and an internet connection, you can download a simple wallet for free. If you do a quick search for a Bitcoin ATM, you can purchase Bitcoins with the same ease you would when purchasing a gift card. It’s what you do after that where the issues arise.
What exactly can you buy with Bitcoin that you can’t buy more easily through other means? That’s not me being facetious. This is where I tend to diverge with Bitcoin enthusiasts. I understand that some major ecommerce sites accept Bitcoin, namely Overstock. I’m also aware that more and more retailers are accepting Bitcoin.
However, the only ones taking advantage of that option are those who go out of their way to use Bitcoin. For most people, especially those who aren’t as tech savvy, there just aren’t enough benefits to warrant the extra effort. On top of that, Bitcoin does have some lingering flaws that are hard to work around. Then again, you can say the same thing about traditional money.
None of that even begins to highlight the growing issues associated with mining Bitcoins.
Now, that could change. It’s not a certainty, but it is a possibility. Like any new tech, the issue isn’t always about whether or not it works. Bitcoin clearly works and it’s been working for nearly a decade. It’s whether or not there’s a “killer app” to entice ordinary people to go through the effort of learning about, acquiring, and using Bitcoin.
The problem is that, thanks to incidents like the Silk Road, the primary use of Bitcoin and cryptocurrencies like it have been for the purchase of drugs or other illicit services. Regardless of how you feel about the politics surrounding illegal drugs and services, that’s the reputation Bitcoin has. It’s just a way for criminals and their cohorts to operate.
That’s not a killer app. It’s also not sustainable.
In order for Bitcoin to play a bigger part in our future, it needs to have a good, meaningful use. It took cell phones decades to find that. Just being able to make phone calls, remember phone numbers, and occasionally host a game of solitaire wasn’t enough. Other apps like music, video chatting, and cameras had to get into the mix before the public and the market embraced them.
That’s what Bitcoin needs. I don’t claim to know what that entails. I think Bitcoin has to get to a point where using it is as simple as using a credit card or debit card. It also needs a particular use or product that will justify the physical and financial investment. That use also can’t be illegal. It’s no secret that the internet owes much of its early growth to the porn industry, but porn isn’t illegal.
Bitcoin, in my opinion, will need something bigger than porn. It might also need to wait until more parts of the world are connected to broadband internet. Maybe it involves voting, enforcing contracts, or the development of new peer-to-peer networks, such as Open Bazaar. I don’t know. I’m not smart enough to figure it out at the moment.
In the meantime, I’ll certainly keep an eye on Bitcoin. I don’t deny it has its uses in the current world. It’s just too limited right now. Whether it has a large or small role in the future that awaits us remains to be seen.