This post is a response to the recent blog by @dollarvigilante titled
Is Peter Schiff Against Bitcoin Because He Is A Globalist Insider Shill?
https://steemit.com/bitcoin/@dollarvigilante/is-peter-schiff-against-bitcoin-because-he-is-a-globalist-insider-shill
This blog hits on some keys issues with Peter Schiff's position against Bitcoin which I find worrisome in an investor I used to spend a lot of time following. However, @dollarvigilante has pointed out some shady connections which do cause concern.
The thing is...
Peter Schiff is right about one thing with Bitcoin...
Bitcoin not delivering on the promise of being the future money of the world.
If you've followed Peter Schiff, as I have, you know that he doesn't think gold is the money of the future so much as the money of all time.
By default, a crypto currency is never going to be his number one money - because gold is his number one money.
Although, I look to make profits in Bitcoin, I do believe it's a bubble. There is no logical reason for Bitcoin be worth $2000 or more without fiats also being in a bubble. One could argue that paper bookmarks are worth $2000 when global fiats crash.
Also, other than being the 'base currency' for most altcoin exchanges and keeping your business out of bankers/goverment's review, there is no other real purpose to Bitcoin; making it a very minor alternative to all fiats.
But let's move on...
Here are the 7 problems with Bitcoin and, to a lesser extent, all cryptos, in general:
1. Bitcoin doesn't seem any further along on the mainstream adoption path
If anything, Bitcoin seems further back with Ethereum, Ripple and others making headway and partnerships where Bitcoin couldn't.
Years ago, you might see stores offering to trade goods for Bitcoin. I can't say I've seen ANY of that recently and Bitcoin is higher than ever...
2. Bitcoin's extremely volatile valuation, due to speculation, is incredibly troublesome to anyone wanting to trade with it while working on tight margins.
Double and triple digit price swings would wipe out businesses with large orders and long delivery times. Bitcoin just wouldn't work.
3. Bitcoin is somewhat difficult to understand.
It has become popular to consider getting rid of our smallest coin (the penny) and others because people do not want to do basic arithmetic. A currency system like Bitcoin's is doomed to mainstream failure when people feel any seller or vendor is able to easily trick them into overpaying.
Imagine you are a merchant who is trying to sell goods to someone who has been drinking heavily and has not yet learned how to pay in decimal increments. Or getting them to remember how they stored their long cryptic codes when the crutch of fiat bills will get them out the door and yourself paid.
4. Bitcoin has too much competition.
Getting the public to buy into cryptos over fiat would just open the door to infinite number of scammers and account phishers dealing in 'the new standard' and the infinite march of ICOs.
"Alright, grandma.
This new insurance ICO token is based on Bitcoin. It's totally safe.
Now, just let me copy your base code for my records and... all done!
Easy as that!"
5. Customer Service is virtually non-existent for crypto currencies, in general.
If a mistake is made or someone doesn't understand the process, they're out of luck... PERMANENTLY.
No forks for life savings lost due to lack of familiarity.
6. What happens when you need to transact in Bitcoin when networks or services are down?
Sure you can send Bitcoin to paper wallet, but where are the mobile paper wallet solutions for little kids wanting ice cream cones or people who lost or had their devices stolen?
Bitcoin traveler's checks maybe?
In an emergency, we all probably know where to go to buy gold, silver, etc. Will the internet even be online when economies falter? How would I trade my fiat into crypto currency if the power is out due to looters and rioters?
7. Bitcoin's name is dirty.
Bitcoin isn't Ethereum, Litecoin, Ripple, EOS or any other coin. Governments and large institutions are not going to switch to the platform of black markets despite what anyone thinks.
Becoming more than the routine bad news bait and the most popular way to trade black market goods, Bitcoin has a tough road ahead versus fiats.
Now, maybe Bitcoin doesn't have to solve all these problems, but I do believe some of them will need to be solved to address the needs of the populace who doesn't spend a good portion of their day thinking about anything crypto related.
A lot of people don't know or care about cryptography or blockchains. They want to pay for goods and services and go about their day.
Until Bitcoin can provide superior scale, speed, security and privacy and somehow get the public to understand and accept it, I'll have to partially agree with Peter Schiff about the stalled success of Bitcoin and cryptos, in general.
Now, it's your turn.
What do YOU think?
Please leave a comment down below if you agree or disagree.
Disclosure: I am long BTC, XRP, BCC and looking to add XEM, BTS.
your right @ranger74, i feel like bitcoin has played its part and now other more reputable and well thought alternatives will come and take over.
Well, with sidechains (and drivechains) honestly, I think Bitcoin could destroy all other crypto as the exchange would make Bitcoin the 1-to-1 partner to fiats.
I think cryptos have a lot of excitement, but it's a bit backwards.
Mostly, I see cryptos as 'a product seeking a market' not 'a market seeking a product.'
Bitcoin is simply the proof of concept for blockchain. It will eventually be replaced by a much more efficient model but not for SEVERAL more years