Why Bitcoin's Growth Should Explode
The Big Difference
The big difference between these two technologies is that WhatsApp was immediately useful. There are no practical use cases for bitcoin today.
Bitcoin is held as a speculative investment. Bitcoin investors believe efficient digital cash will be very useful in the future. This could be compared to email versus standard mail. Bitcoin is the same idea -- send money as fast, cheap and easily as sending an email.
To realize that vision, two things need to happen: Infrastructure needs to be built, and a critical mass of people need to have bitcoin.
The Coming Explosion
Why so fast?
Bitcoin is a modern open system. There are no implementation fees, no approvals are required and the required technical skill is relatively low.
When useful services roll out, bitcoin adoption should soar because it costs nothing for users to engage and close to nothing for platforms to become part of the ecosystem. But when will this happen?
Useful services are currently being tested: remittances, tipping and notary services. As soon as one of those services (or something like them) becomes a best-in-class solution, bitcoin growth should explode to dominate that market. That explosive growth will ensure a critical mass of people.
One of the great things about bitcoin is that unlike WhatsApp, Facebook and other rapidly growing companies, retail investors have the same opportunity as big venture capital firms to invest and benefit from the expected explosion in usage and, therefore, price.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted in: Tech