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Bitcoin

Bitcoin is a cryptocurrency developed by Satoshi Nakamoto.
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Is Bitcoin the greatest scam in history?

Scam shouldn't be used as a label for Bitcoin at large, but the hype machine and pump-and-dump schemes around Bitcoin are most certainly teetering on the lines of being a scam. Bill Harris, former CEO of Intuit and founding CEO of PayPal and Personal Capital, writes: Promoters claim cryptocurrency is valuable as (1) a means of payment, (2) a store of value and/or (3) a thing in itself. None of these claims are true. Means of Payment. Bitcoins are accepted almost nowhere, and some cryptocurrencies nowhere at all. Even where accepted, a currency whose value can swing 10 percent or more in a single day is useless as a means of payment. Store of Value. Extreme price volatility also makes bitcoin undesirable as a store of value. And the storehouses — the cryptocurrency trading exchanges — are far less reliable and trustworthy than ordinary banks and brokers. Thing in Itself. A bitcoin has no intrinsic value. It only has value if people think other people will buy it for a higher price — the Greater Fool theory.

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Medium Icon Medium

Why decentralization matters

Chris Dixon on Medium: Early internet protocols were technical specifications created by working groups or non-profit organizations that relied on the alignment of interests in the internet community to gain adoption. This method worked well during the very early stages of the internet but since the early 1990s very few new protocols have gained widespread adoption. Cryptonetworks fix these problems by providing economics incentives to developers, maintainers, and other network participants in the form of tokens. They are also much more technically robust. For example, they are able to keep state and do arbitrary transformations on that state, something past protocols could never do. What Chris is advocating is the protocols of the past weren't made for the internet of the future. The next era of the internet is being built with Web 3.

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Stripe Icon Stripe

Stripe is ending their Bitcoin support

For Stripe, Bitcoin isn't scaling well to make it "useful for payments," and it's expensive in both time and money to process transactions. However, Tom Karlo said "Bitcoin has evolved to become better-suited as an asset rather than a means of exchange." A line in the sand has been drawn for Bitcoin as a useful payment currency. Therefore, starting today, we are winding down support for Bitcoin payments. Over the next three months we will work with affected Stripe users to ensure a smooth transition before we stop processing Bitcoin transactions on April 23, 2018. Clearly the value of Bitcoin is still there as an asset. It's just not working out (for Stripe) as a means of exchange for payments. Though they remain optimistic. Despite this, we remain very optimistic about cryptocurrencies overall. Tom also provided some insights to where things are heading for crypto and payments. We may add support for Stellar (to which we provided seed funding) if substantive use continues to grow. It’s possible that Bitcoin Cash, Litecoin, or another Bitcoin variant, will find a way to achieve significant popularity while keeping settlement times and transaction fees very low.

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