I'm not a billionaire. I'm not even a millionaire. Some people in this world are millionaires and billionaires. So why would I want to work in the USA, and buy shares in Google...
You're referring to speculation and savings, which are not the sole foundations of a currency.
Bitcoin is missing some infrastructure which keeps it from going mainstream but it is experiencing the network effect and just like Facebook did...
Facebook was free, Bitcoin is not. No comparison anyhow as amongst other things bitcoin is not claiming to be a fad.
This isn't true. The idea that superior technology always wins isn't true. Myspace was a superior technology to Facebook and it did not win...
Don't mistake a network effect and the luxury of risks taken with existing wealth by an already comparitively wealthy subset, to the ability to shoehorn ordinary people from their hard-earned money. I'm not at all negative on cryptocurrencies in general, in fact I'm incredibly optimistic, only making the point that the winner will not be bitcoin as is.
The only thing it would take to make Bitcoin be mainstream is infrastructure. When a human being can live off Bitcoins, pay their bills, rent, buy food, and Bitcoins are easy to use and buy, then it's ready to go mainstream. Right now Kashmir Hill has tried to live of Bitcoin and found it's still not ready. When this test takes place again and they find out its ready, then these journalists will begin hyping Bitcoin.
Right this is where we really part company. You would be absolutely correct, except youre missing the pivotal point that any transaction requires two sides, including for Bitcoin. And to achieve any of the things you refer to beyond saving somebody is going to have to take the shitty side of a hoarded deflationary asset.
And this is where we disagree. I don't think Bitcoin will be stopped once the technology is set up where people can live off them. It's not there yet. There needs to be Bitcoin banks, ATMs, credit/debit cards, secure hardware based wallets, distributed exchanges, and jobs which pay in Bitcoins along with the ability to buy anything with Bitcoins. These problems are being solved this year. Sometime in 2014 most of these problems will be solved. Then it's just a matter of scaling up.
No they won't be solved. They were not designed to be solved because Bitcoin is not what you advocate it to be. You say that people dislike inflation. You mean every saver dislikes inflation. Every borrower loves inflation (when balanced against asset price, wage trends). Could you explain, in practical and transaction terms:
(a) Why and how any borrower or anyone on the shitty side of bitcoin credit would choose to borrow in bitcoins when they can instead elect to borrow in stable or inflationary currency.
(b) If (a) is a problem, how the Bitcoin infrastructure persists without consistent interest in that side of the balance sheet
(c) If you dont think (a) is a problem, how Bitcoin would support both the asset and liability sides of transaction, borrowers and lenders, buying and selling with credit/upfront/assured future goods and services delivery etc.
You shouldn't have to buy them. You should be able to work for them. The reason Bitcoin isn't mainstream is because there isn't enough infrastructure set up for people so they can work for them. Coinbase is solving this problem, and Bitcoin banks and credit unions solve the other half. Coupons which give discounts to people using Bitcoin will promote demand.
The reference to buying them was that somebody somewhere at sometime has to obtain them. My sloppy language.
There will be other coins. Bitcoin does not have to be a niche coin either. When the exchange problem is solved then anyone who wants to can buy portions of Bitcoins at any time from any ATM or Walmart. When that happens it's all over for Paypal and that along would make Bitcoin mainstream. Go into Walmart and buy a Bitcoin debit card. Go to the Bitcoin ATM to turn Bitcoin into fiat and fiat into Bitcoin. Go to the Bitcoin credit union to get loans. Receive discoints, points and rewards for buying products and services with Bitcoins. It's an easy choice for anyone to use Bitcoins when they can get sales.
Yes there will be other coins. Bitcoin does not have to be a niche but it will be when it's quite a straightforward proposition to establish ones own blockchain, call it Wallmartcoin or VisaCoin or Devcoin etc with a foundation that better serves the needs of all users (i.e. that there are more of them).