I’m As Certain As Ever – Bitcoin’s Revolution Is Only Just Beginning
Tim Draper is a founding partner of Draper Associates and principal of Draper University.
For more information on Bitcoin's 10th anniversary, check out the new interactive features of Bitcoin at 10.
It was not 10 years ago, but it was like when I first saw the possibility of digital currency. I have been through some big changes with bit coin. But today I am convinced that the bit coin revolution is coming.
In 2004, I learned that people are paying real money for digital items such as weapons used in massive multiplayer video games from wealthy Korean industry. The game was "Lineage," which was driving Seoul into a storm.
I came to think that virtual products have amazing business.
Later, Joel Yarmon led me to a bitcoin around 2011. He introduced us to Peter Vincennes and his company Coinlab. Bitcoin was a new currency that could be used to save value and pay for not only the progress of video games, but also the value.
I quickly absorbed the basics of bit coins, such as miners, wallets, and so on. Decreasing the number of bit coins that can be mined over time meant that bit coin prices would increase as bit coins were picked up and usage increased. In fact, there was a possibility that the value of the currency would increase as the spread of the beat spread and the usage rate increased.
Coinlab will become an innovator and miner centered around the bit coin. We have made a small investment in the company. My son Adam started an accelerator called Boost VC for the Bitcoin (and block chain) company. He was Coinbase's first investor.
At that time, I asked Peter if he could buy a $ 250,000 bit coin. He bought some for me at about $ 6 and saved them to Mt. Gox, the biggest bit coin exchange at the time. Butterfly Labs said he could get a cheaper bit coin by buying a high speed mine chip, he said. Both of these efforts went south.
First, the mining chip was delayed. Butterfly Labs used this chip to collect bit coins instead of shipping them to Peter as ordered. When Peter received an ASIC chip, the difficulty level of the mine increased sharply. Meanwhile, a small piece I was buying was Mt. Gox.
Resilience of Bitcoin
But the failure of Mt. Gox. Bitcoin prices have fallen by only about 20%, and currencies have been traded on other exchanges. I was surprised.
The demand for this new digital currency was so strong that even bigger thefts realized that Bitcoin could not create a new way to process, store and move money. Since the financial crisis, people have lost confidence in the government or the "currency" currency. I went back to reclaim the number of Boost VC bitcoin companies, and there was a tremendous opportunity to discover more and more uses.
And I got another chance to get involved in the bit coin opportunity. The US Marshall office confiscated Bitco, owned by Silk Road, an online drug market, and had about 30,000 bit coins installed in the auction. I saw this as an opportunity to replenish the lost bitch.
The market price was $ 618 per beat coin. At the last minute, we decided to bid at a higher price than the market price. I bid $ 632 and got all the bit coins!
After feeling the inevitable buyer's remorse of having to pay a higher price for someone who is willing to pay, I thought about how to best utilize these bit coins through the contaminated past. I decided that people would use these to support the spread of beatco through an emerging marketplace that they are not confident in their currency.
Many people in such countries can not do "banking". The bank loses money to people who have not made all the paperwork worthwhile. The banking regulations set up to protect small people actually prevented small people from participating in the economy. He almost guaranteed that he would remain a "little person". There are billions of "unbanked".
Abish Bhama, a sidelined entrepreneur from Mirror, helped shape a good plan to put the currency into emerging markets. This idea gave people in developing countries the ability to invest in everything by using bit coin as a "conduit" for trade.
Mirror later changed its business model, but later backed up companies – BitPesa in Africa, Bitpagos in Latin America and CoinHako in Southeast Asia – are making the emerging world a market.
Bitcoin's great potential
I was deeply impressed with the possibilities of bitco and block chains. Bitcoin is a currency that is accepted everywhere without government friction or interference and is a frictionless call that can automatically move without a contract with a stored value solution that does not require a holder to hold a room full of metal and art. General draws coming from rules and accounting rules.
But there are many other uses.
Bitcoin wallets can also be used as an escrow as a previous agent for transitional contracts, real estate redistribution or payment, dividend or stock distribution. Block chains can track money, data, inventory, contracts, etc. "Smart" contracts can be designed to predict accidental events and automatically distribute funds appropriately. Companies can use block chains to automatically pay wages and benefits to their employees, pay dividends to shareholders, and pay shareholders with their accurate interest rates and principal payments with accurate accuracy and automatic accounting.
Block chains can easily manage three-way transfers and eventually handle retail transactions that do not require a credit card or debit card. Insurance companies can use this to manage insurance claims and automate collections. Both real estate escrow and title can be processed quickly and easily between buyer and seller. Drugs and food can be certified by a blockchain to ensure its origin.
In addition, the US government can manage all data verification for both social security, welfare, medicare, worker treatment, disability, and citizens and businesses in bitco and block chains because the block chain is the perfect government official.
Be honest, not corrupt, safe and fair.
Changes will come.
Many industries will have to undergo fundamental changes to adapt to the emergence of this new way of thinking. People will need to know that for centuries, a trusted third-party bank will soon be replaced by a computer that monitors ownership relationships through a block chain. Banking is simpler, safer and easier than relying on people doing monotonous work in brick and mortar facilities.
It is interesting that countries that are currently competing with each other are working to win the beatcoin economy. The smartest of these is recognizing that bitcoins need to be flourished, or that all the creativity, money and overflowing in the field require the light touch needed to adjust the bit coin to attract new businesses.
It was wise for the United States to maintain a free and free Internet because all Internet entrepreneurs had created entrepreneurship and the economy around the Internet flourished. Keeping the regulator's hands bright helps the innovator stay in the United States.
There are many similarities between Bitcoin and the Internet in 1994. In 1994, the Internet was for lovers and hackers. When I first used the internet, the only thing I could remember was trying to buy diamonds and break into NORAD. I rarely use it. It took years for the Internet to become mainstream, but then it changed the industry.
The long-term vision for Bitcoin is to liberate the global economy. Bitcoin's potential is limited only by the imagination of the entrepreneurs who lead the new virtual economy. To be honest, I believe that the user community will ultimately regulate itself and perhaps eliminate or eliminate the need for governments to regulate the cryptographic world.
I have experienced a bit of coincidence and am confident that the Bitcoin Revolution is coming.
It is here that we organize non-banking banks, democratize economic opportunities and re-evaluate governance. I expect it will change everything from banks and financial systems to health care, democracy and even the government.
Team Draper image through CoinDesk archive
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