BY CHRIS OSBOURNE • FEBRUARY 6, 2014
Our full Q and A for the article:
What processes are needed to get the mainstream to adopt bitcoin as a method of payment?
A lot of people don’t realise how well designed Bitcoin is as a cash system until they actually use it to make payments and transfers. However, we are still at a point where we are reliant on software wallets and no software wallet can be 100% secure. I’m hoping to see the introduction of hardware wallets soon and ones that get the use of public private keys right in a secure way. If someone can make an easy to use hardware wallet, say in the way the iPod made music accessible; I think we could well see the ubiquitous adoption of Bitcoin and cryptocurrencies.
Now the FBI are free to ‘Liquidate’, what impact do you think this will have on the ecosystem?
If they were to dump the confiscated BTC holdings into the market I don’t think it would have much long term impact on the economy or the price. I think if they did though it would be an opportunity missed for the US government at the beginning of a new era of finance. There are so many sub departments and fiefdoms within governments with each making its own policy decisions that it’s often very hard to coordinate anything with a sensible long term view.
Take a guess - what will Bitcoin be trading at in 12 months?
The fact that you are asking me this question I think is very interesting. Satoshi was very clever; he not only invented a system that was ultimately beneficial to society as a whole he also invented a system that plays to an individual’s motivation to make money. Yes: everyone wants to know that they are getting richer because they are holding BTC. And Yes: it is a more effective form of money. Everyone benefits both in the short and long term. I don’t think you could invent a better system to entice people to join. I have also not made my mind up about the belief that “deflation causes people to hoard their money” everyone I know sells a little BTC each time the price goes up. This seems to be spreading the currency in a very well designed way. Just as we can’t be sure that actual deflation causes hoarding because we’ve never experienced true deflation. Only time will tell how this experiment will turn out. I don’t think anyone can predict where the exact price will be in 12 months but I am very confident it will be much higher than it is now.