12/09/2014

what will come in the place of bitcoin ?

"It wouldn’t be the least bit surprising to see the best bits of Bitcoin be grafted into new products and services (like facilitating international transfers),” said David Yermack, professor of finance at New York University Stern School of Business, to CNN.

 

“A lot of the breakthrough products tend to get taken over pretty quickly by improved versions and I think that’s likely going to be the fate of Bitcoin. It’s certainly played a role in raising issues and opening possibilities that people were only dimly aware of before. But if I owned Bitcoins, I would be a seller at the current market price as I think a year from now they may be all but worthless.”

http://www.mintpressnews.com/bitcoin-hype-spent-whats-nex...

first they seem to forget that some - even essential parts - of bitcoin (like for example the encryption) seem to have some fundamental logical mistakes which makes it insecure an sich. So incorporating parts of bitcoin into new digital currencies that are part of the normal financial systems can introduce some grave mistakes into the normal financial system. 

secondly the biggest advantage of Bitcoin is that it is anonymous but governments all over the world are trying to limit the anonimity of money transfers because they want to receive the right amount of due taxes. So this fundamental part of bitcoin won't ever be incorporated without a backdoor for tax and law agencies. It will also be much easier to follow digital currencies through their CHAIN if there is such a backdoor than with our present ways of paying. 

and last but not least

bitcoin has shown what the internet have shown in so many other industries and that is that if there is an unfair interference from businesses in a normal process it can and will be replaced by an internetbased direct system. It costs much too much to transfer money around the world - and even across accounts. But I don't see the bitcoin replace the dollar as an international currency. It will be much easier to have a 'digital dollar' with the possibilities of a digital bitcoin than a bitcoin with the financial trust of the dollar. 

and so

there will always be anonymous digital currencies because there is a reason for them to exist and if you use them for that reason (to give anonymously to support causes by example) whatever the value of the bitcoin at any moment. But it will never become a real investment product (except as pure speculation with the risk of losing nearly everything) because it is insecure, prosecuted by law agencies and not supported by any financial institution. 

if you use bitcoin, use it to do something with the same value you have bought it 

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