Ever since Bitcoin was started, it has caused a divided opinion between both professionals and those interested in the financial district. So, what is more useful, the internet or Bitcoin?
One popular decision is that the internet could actually solve real problems, whereas Bitcoin, and cryptocurrencies as a whole cannot.
The internet promised, and ultimately produced a more efficient way of selling just about everything. Even when the stock bubble burst, the internet was able to boost productivity and living standards.
Tim Mullaney, a writer for MarketWatch recalls on his own experience of working at BusinessWeek, and a particular meeting regarding Priceline and Amazon.com. As we all know, Amazon quickly became incredibly successful, and the owner, Jeff Bezos quickly worked out that he could under price big named brands, whilst still making a profit for himself. The risk with this was that the financial markets would cut him off before he was a well known name. Had this happened, the company would not have been successful.
How does Bitcoin compare, and could it ever be as successful?
The main problem is that Bitcoin could not be compared to solely internet based companies because the currencies that are managed by central banks whose monetary expansion would cause hyperinflation simply does not exist. The value of Bitcoin has never been stable, so there is no one that is willing to support them, and provide essential monetary support when the value decreases.
The blockchain technology that is used to track crypto currency trades is a much more secure and safe way to process transactions – more so than the method the banks are using now. Despite this being true, there are only some blockchain companies that are vendors to real banks.
Let’s take Polybius for example – they strive to be a bank that specialises in peer to peer lending that is denominated in cryptocurrency. However; companies like this simply did not reach the IPO markets quite like the dot com ones did.
The dot com companies on the other hand were much more simple and far less of a risk – if the investors held on until they made it big, they would make a profit.