Are You Ready To Admit Bitcoin Is A Failure?
The past month has been a brutal month for Bitcoin investors as the price of Bitcoin has decreased 25% in the last 30 days. Despite news that Paypal would be accepting Bitcoin, the selling pressure from Bitcoin exchanges has remained vicious. Many Bitcoin bulls may be left wondering if Bitcoin is a Failure? The graphic below shows the month’s price action, and the up-spike on September 24 was the Paypal announcement.
A thread on the Bitcoin Talk Forums put forth the question: Ready To Admit Bitcoin Is A Failure? The opening posts asks a provocative question to the forum, and states:
I want to talk about why and what can be changed to fix Bitcoin, but first we have to admit there is a problem.
Many people are noticing some problems with Bitcoin. If a merchant adoption the size of Paypal can only provide a 1-day price spike, then there may really be some fundamental problems with Bitcoin. However, not everyone agrees that Bitcoin is a failure. One poster retorts we are still in the beginning stages:
Why concede defeat when we’ve only just begun? The mainstream population needs more incentive to use Bitcoin. Give it time. If you haven’t noticed, the infrastructure is being built.
“Build it and they will come”.
Infrastructure is being built, but mining operations are being centralized. This means that large groups or corporations are becoming the only ones capable of running a profitable mining operation.
Many people remain bullish on Bitcoin, but are looking at longer time frames. It may be years before the Bitcoin catches on as one poster explains:
This is a 5-10 year play. It’s about the technology not price. Stop looking at price as indicator of progress. We all need to buckle down for the long haul and extend long term support.
Bitcoin technology is revolutionary, but Bitcoin still has long transaction times for small transactions which may prevent it from being used in stores. Other alternative coins such as LiteCoin have been advertised to reduce transaction time, but this comes at the cost of lower security with fewer confirmations. It is possible there will be a better Bitcoin which scales better for smaller transactions.
Does Bitcoin Merchant Adoption Mean Bitcoin Is a Success?
Many new merchants have begun accepting Bitcoin as a form of currency. Still it is unclear if this makes Bitcoin qualify as a success. One poster says Bitcoin Merchant adoption is growing at an exponential rate:
Adoption is accelerating faster than anyone could have imagined. It took Bitpay about 2-3 years to get 10,000 merchants and now within a few months they’ve got more than 30,000. Add to that several high profile names such as Overstock, Dell, Target, Cheapair, Newegg, Dish (most of whom just came on in the last 120 days) + Paypal imminent. By any definition, that rate of adoption qualifies as exponential.
Maybe you weren’t around when people were laughing at the idea of booking an airline ticket on the web. It’s not clear when web shopping reached “critical mass” but it if you were a “techy with vision” it felt exactly the same – like it was never going to happen. In fact it took about 10-15 years for eCommerce really to take hold from the point of inception of the web. Bitcoin is 6 years old.
Bitcoin may be on a slower growth path than many expected which is causing disappointment.
Definition of a Bitcoin Failure
Bitcoin has been one of the most revolutionary technological innovations of recent times. Even if the Bitcoin itself were to fail, the innovation it has sparked in computer sciences is incredible. Some see the recent price downtrend as evidence of a failure, while others are taking a much longer outlook and realizing that Bitcoin is still in its growing stages and destined for a spectacular future. One info-graphic shows why Bitcoin cannot be called a failure yet.