Thursday, December 12, 2013
Bitcoin or Bank
I have avoiding discussing bitcoin until now while we waited out the potential of serious regulatory blowback which so far appears seriously muted. What bitcoin provides is a natural currency which is not managed for the interests of a national government. This makes it ideal for simple transactions for which there is always ample demand. As a result this will drive down individual costs and take some day to day liquidity away from the retail banking sector.
This item pretty well tells the story. You may well have to double click the image in order to see a larger version.
This media also sets the stage for purely local banking internal to even a small community of fewer than a couple hundred who wish to set up a local internal exchange system can interface with handily.
Bitcoin Or A Bank? Here's How They Stack Up
The following graphic was put together by the folks at Promontory Financial and is extremely telling. It looks at three ways in which a U.S. citizen might choose to go about sending a $1,000 downpayment to Europe for the purpose of renting a vacation home. They put Bitcoin side by with with a traditional bank wire as well as a credit card transaction. The results might surprise you...