Andreas M Antonopoulos, a well-known Bitcoin influencer and the Author of Mastering Bitcoin, spoke about the Bitcoin [BTC]’s use case and the current hindrances in its adoption, during a Q&A session.
The author was questioned on whether he knew any particular case where Bitcoin is helping out like M Pesa, a mobile phone-based money transferring system. Antonopoulos replied stating that he has not come across any such use case as of now. However, he added that there are some use cases of Bitcoin in Venezuela even if it is a very small percentage of the population.
“M Pesa in Kenya has been touted as a huge success of mobile money but don’t forget that that’s still very strictly controlled. It’s very difficult to move money in an ounce of Peso to other countries and from what I understand there are effectively currency controls on that too and it’s not an open system. It’s a completely controlled single provider closed system and you still need to to have an account with a central organization.”
Antonopoulos further stated that Bitcoin is not ready to help out as it still lacks scalability for wide adoption. He stated that there is a lack of ability to make micro-payments with low transaction fees that allow people living on $1-$2 a day to use this system. He also said that there has to be an easy-to-use technology which can be implemented in the most basic smartphones in a secure manner, with ease of use for everybody. He said:
“Bitcoin simply isn’t ready yet but that doesn’t mean we can’t get there. In fact, there are many promising technologies that are gradually evolving to get us there from hardware wallets […] lightning Network and various other technologies that will allow smaller and smaller payments for smaller fees, rapid settlement of payments and more scalability to put many millions of transactions into the blockchain so all of these things need to be mature before we can see adoption in other countries.”
According to him, the current state of Bitcoin is similar to the initial days of cell phones, when they were the “size of a suitcase and cost $25000”. This did not affect the communication state in Kenya as the people there could not afford it, he stated. However, he said, this does not imply that people can see the future of technology but as it progresses, it gets smaller and cheaper to buy and run.
“Things will happen to Bitcoin but it might take 10 or 15 years […] I think that is absolutely the number one application for cryptocurrencies which is giving people the freedom to transact internationally without access to a bank account without prior verification without fulfilling some arbitrary requirements and basically given them financial freedom”