Why bitcoin can defeat the ingrained payment industry
People are most concerned about bitcoin Price Volatility: it is up or down? Bitcoin is a good investment, or just a speculative bubble?
“BI intelligent” in a recent report explains bitcoin from the local currency is converted into bitcoins at this moment, it reaches to the whole operation process that a receiver of the electronic wallet. The key advantage of our optimistic bitcoin payments than traditional rivals, and examine the bitcoin as a payment network will face some challenges. We believe that a payment network is the real value of bitcoin. Bitcoin offers a very low cost to businesses and individuals, there is a nearly frictionless payment system. This value is very easy to transfer in the world, does not need to send sensitive information may be used for fraud, also do not need to force merchants to pay high transaction costs.
Here are a few key factors mentioned in the report:
1, unlike government backed currency, bitcoin has a can be called elegant design, that is he on how many units can be created are strictly limited, which was limited to 21 million pieces. But every coin can be divided into 100 million parts, which can make it extended to a payment technology.
Daily trading volume of 2, bitcoin is only maintained at $89 million, while rival Visa is $16 billion 500 million, trading volume Master Card is $9 billion 800 million.
3, generally speaking, bitcoin can in no intermediary case of online value is simple safe transmission. A lot of game player in the bitcoin ecosystem, can help to achieve this goal, including bitcoin exchange, bitcoin wallet and miners.
4, the third party payment processors are involved in bitcoin. It can handle like price fluctuations, the bitcoin network length of time to eliminate defects of this kind of exchange. Businesses can also deal with bitcoin transactions in a timely manner, to avoid foreign exchange risk.
5, however, bitcoin is still facing other significant threats, such as fraud and supervision. And now, too much power in the small group of miners, which will give bitcoin bring more profound vulnerability.
6, although there is an obstacle in front, we believe that bitcoin has higher efficiency and lower cost. Compared with the traditional payment tools including credit cards, remittance service, credit, bitcoin will eventually become a business, personal, B2B application is difficult to resist the payment.
In general, the report is as follows:
1, the report examines some problems after the creation of the bitcoin, bitcoin and provide the perfect solution. These are obvious advantages over the current bitcoin payment system.
2, the report gives the industry bitcoin view. Report from bitcoin investment trust fund founder Barry Silber (Barry Silbert) and BitPay’s vice president of marketing Stephanie Vogel (Stephanie Wargo) exclusive interview.
3, report about bitcoin security, volatility and regulatory exploration of the open problem, but also provides a potential answer to these questions.
4, the report analyzes the traditional payment system in the game player. If bitcoin has become a trading network, the game player will likely eliminate them.