Now that Bitcoin is here to stay, what’s next?
Bitcoin is a peer to peer decentralized cryptocurrency, and the first of its kind. It is one of the most exciting innovations in finance in at least the last hundred years. Bitcoin is completely determined by an algorithm and everything is open source, so there are no surprises. No central agency can control the supply of Bitcoin, unlike fiat currencies or even materials like gold. The world can only see a total of 21 million Bitcoins in existence.
Like any disruptive new innovation, Bitcoin has a fiercely loyal core group of fans and followers who are passionate about the idea. They are the ones who push it forward and spread the idea and take it to the next level. Bitcoin has many enthusiasts who are excited about the idea and how it can shape the future of finance, bringing the power of money back to the masses rather than under central control.
It’s not just a passing fad. Bitcoin is here to stay. Miners are gearing up to get the best of the best equipment to mine Bitcoin more effectively. Exchanges are investing heavily in the security and efficiency of the Bitcoin system. Entrepreneurs are taking risks and building huge businesses around this idea. Venture capital funds are beginning to back projects revolving around Bitcoin (Coinbase just raised a $5 million venture fund from some top VCs, including the team that backed Tumblr).
There are many scenarios, black swan and others where Bitcoins can become a dominant force in the financial industry. There are many pessimistic scenarios one can think of where Bitcoin will retain its value as hyperinflation consumes the fiat currency of a weak central government (there has been at least one recorded case in Argentina where a person sold their house for Bitcoin). . However, that is being too pessimistic. Even without anything bad happening, Bitcoin can live happily alongside the world’s traditional currencies.
Some of the biggest advantages of Bitcoin are realized in efficient markets. It can be divided into one hundred million parts, each called a satoshi, unlike fiat which can usually only be divided into one hundred parts. Also, transactions through this network are essentially free or sometimes require a small transaction fee to induce miners. By small, we’re talking less than a tenth of a percent. Compare this to the 2-4% fee typically charged by credit card companies and you’ll see why this concept is so appealing.
So now that you are convinced that Bitcoin is here to stay for the long haul, how do you make use of it? It is still in very early stages of development and there are plenty of places where you can do some Bitcoin. Faucets, for example, are only supported by advertising and captchas and have no problem: you enter your wallet ID and get free Bitcoins.
There are several other concepts from the Get-Paid-To world translated and created especially for the Bitcoin economy. For example, there are several ways you can take surveys, watch videos, and visit advertiser websites, all in exchange for a few Bitcoins. This being new, it’s a great way to test the waters and secure some of it in the process. Remember that it is much easier to gift Bitcoins because microtransactions are so convenient. There doesn’t have to be an actual minimum payment, and even when there is, it’s usually very minimal.
To participate in the Bitcoin economy, you don’t need to be a technical expert or even delve into how the currency works. There are several services you can use to make the process as easy as possible. It’s up to you to take that leap of faith and stay in the game for the long haul.