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...
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