For nearly two years, we have been following Bitcoin in the mainstream news. For the most part, we’d have to say that the coverage has been bad. Drugs, money laundering, Ponzi and pyramid schemes, hacks, thefts, bankruptcies, arrests… For the most part, the technical aspects of Bitcoin have been too complex, the concept to weird, and the back story too shady for respectable journalists to give the fledgling technology anything better than a scoffing look.
That may be changing, though. Since Dish Network, REEDS Jewelers, and Expedia have begun to accept Bitcoin payments, the tone of those articles have suddenly become more respectful. The fact that Citi seems to be giving Bitcoin some real thought, that Apple changed their terms to allow apps that use Bitcoin, that PayPal has stated that they will probably have to integrate cryptocurrencies at some point has added to that momentum.
Take a look at a few recent articles:
If It Can’t Make It There (Economist)
Bitcoin’s Place in Wealth Management (Wall Street Journal)
This 15 Year-Old Kid Made 100,000 from Bitcoin (Business Insider)
The good news, though has been counter-balanced by the fact that Bitcoin adoption is proceeding in a plodding fashion, that the great promise of concepts like Colored Coins, Mastercoin, and Etherium remain as yet unfulfilled, and that there have been no great breakthroughs in remittance markets or developing world adoption. Bitcoin seems to be on the cusp, but it seems to be just teetering there without really taking off.
It has long been our position that although Bitcoin is touted as a currency, in its developmental phase, it’s actually much closer to a commodity, like gold, than it is to cash. It’s being used now a store of wealth and a way to carry or transmit value, but as money, it’s not really there yet. People like to comment on the price of Bitcoin a lot, and it is going to have to rise dramatically before Bitcoin can really fulfill its potential, but price watching also kind of misses the point of what Bitcoin is right now. It’s a risky unknown investment instrument to the vast majority of people out there.
As we watch the wild price swings, it’s important to remember that there is great value in Bitcoin and to watch also how much stronger the Bitcoin economy is becoming. The breakout will occur in its own time, and probably when none of us expect it. All we can do in the meantime is to continue trying to make Bitcoin a better place to be.
Posted on June 14, 2014 on BitcoinWarrior.net