Bitcoin is finding its way from big cities to remote places around the globe and into Native American Indian reservations, according to Coin Desk today. Why is Bitcoin embraceable around the world with an ability to promote trust? It opens the door to everyone and moves past the elite of Wall Street.
The blockchain technology developed by Satoshi Nakamoto and released in 2008 promotes access to the common man. It allowed an organic farmer in Santiago Argentina began using it in 2013 to sell his product. Shannon, South Dakota- the second poorest county in the US now can embrace it and use it. There are no geographical boundaries or financial restrictions.
Silicon Valley entrepreneur Andreas Antonopoulos describes Bitcoin as “trust by computation.” He views Bitcoin and the blockchain technology as allowing anyone to participate in it and use it for an exchange medium. There is no centralized authority. Antonopoulos describes the flow of bitcoin and exchange as no borders, no boundaries or central authority to limit an individual.
The power of bitcoin exchange that Antonopoulos sees is that the remittance costs offer competition to a remittance market which in 2012 totaled somewhere between $400 billion and $530 billion. Banks and Western Union will take a large amount of the projected $685 billion in the upcoming 2015. People who are in countries of highly volatile currency and no local bank system can have access to receiving funds.
Entrepreneur Marc Andreessen, creator of the Netscape Web browser, sees bitcoin as the Internet was in 1993. Another entrepreneur, Adam Draper, the CEO of Boost, a venture capital investment firm in bitcoin, has twenty-six Bitcoin start-ups and plans to have one hundred upstart venture capital firms for bitcoin within three years. He will focus Boost exclusively on bitcoin companies.
Melanie Shapiro, founder of CryptoLabs and CEO of Case, compares Bitcoin as a protocol that anyone can hook up to an open network called Bitcoin and exchange a token from someone else. Shapiro sees the disruption of Bitcoin as an advantage. Bitcoin will provide transactions globally without the excessive fees. Merchants lost $230 billion in 2013 to merchant fees and fraud transactions. Bitcoin is now utilized by over 100,000 merchants and there are 80,000 transactions daily with bitcoin.
Shapiro sees that the volatility in bitcoin will stabilize once there are more transactions. Visa and Master Card trade five trillion daily to bitcoin $10,000 million daily. This will change as Bitcoin and blockchain evolve and reach high transaction exchange. Bitcoin and the blockchain technology is definitely the disruptive force today as was the Internet and will be the next level of technology for lifestyle in a network of trust.