How bitcoin is like the internet in the 80s

How bitcoin is like the internet in the 80s


A lot of people talk about bitcoin as a new
kind of currency, but ignore that talk. Bitcoin is a crappy currency. Dollars are a good currency.
The real revolution of bitcoin is as a new kind of payment network, something like Visa
or PayPal. Those conventional payment systems are owned and operated by for-profit companies.
But bitcoin isnt — there’s no Bitcoin-the-company. Instead, bitcoin is run as a peer-to-peer
network. Computers on the bitcoin network process bitcoin transactions by adding them
to a shared public register. They call that the block chain. All the computers keep it
together. It’s as if we were all keeping Visa’s records up to date together as some kind of
weird volunteer project. You’re probably wondering, well what’s the point? Why not just pay for
things with PayPal or Mastercard like a normal person. And it’s a good question. But bitcoin
has one big advantage over conventional payment networks. It’s an open platform. To become
a Mastercard merchant, you have to apply for permission, pay a lot of fees to Mastercard,
comply with hundreds of pages of regulations. Bitcoin is different. Anyone can use it. It’s
free. And there are no rules limiting what bitcoin-based services can do. An open technology
platform like this can become a hotbed of innovation. Think about the internet. People
were as baffled by the internet in the 1980s as they are about bitcoin today. The internet
was unusable then. It seemed ridiculous that anybody would ever find anything useful to
do on it. Eventually, that freedom allowed people to build things like Amazon and Google
and Facebook. The buzzword here is “permissionless innovation.” You can do cool things without
any central authority being able to tell you no. In the same way, bitcoin can become a
platform for building a new generation of financial services, like international money
transfers that are faster and cheaper than Western Union, better security for everyday
purchases, and perhaps new services that aren’t even possible with conventional payment networks.
We don’t know what this stuff will be. But now that bitcoin is here, we’re going to find
out.

100 thoughts on “How bitcoin is like the internet in the 80s

  1. Blockchain is the real important tech. Bitcoin is susceptible to manipulation (e.g. pump and dump). Lots of people will loose their money

  2. The internet didn't involve money and forced people to invest or buy something non existing in the real world, did it? Now, look at all the possibilities of scams, fraud, underground and illegal activities, etc.

  3. As a democratic socialist I do embrace "central authority" when it comes to making sure society's priority is to ensure the population is fed, healthy, housed and given equal opportunities to better ones self regardless of financial circumstance, beliefs, race etc etc. However, where I don't necessarily embrace "central authority" is when the peer-to-peer model is under threat by national banks (public or privately owned it doesn't matter in my eyes) and to champion autonomy and innovation. If you're gonna gamble with markets and resources; do it away from government and potentially knackering up ones economy!

  4. Why not just use a credit card instead of bitcoin? Maybe why not just use math instead of a calculator. Bitcoin m a s t e r r a c e.

  5. Did Vox invest in bitcoins or something. They gave none of the disadvantage like it is use in the Black market to move money around or that it is very risk and the whole system might break down. Bitcoin isn't really used a currency. More like an investment but a risky one.

  6. 3 years ago? That explains why they think BitCoin transaction fees are low. It's now more than paypal or visa…. By a lot!

  7. When you have 3 mil subs and only .5 mil views on a video about bitcoin…

    You know it's time to invest.

    THE BUBBLE HAS NOT BECOME UNSUSTAINABLE YET. ALL ABOARD THE BIT-TRAIN WHOOP WHOOP

  8. This is a crappy crappy analogy. 'The only common thing betwee bitcoin and the internet in the 80s is that people are baffled by them' ????

  9. I own bitcoin and I can tell you: it’s just going to create more inequality we’ll have to fight and even kill the rich if we want to stop the automation apocalypse…

  10. by that analogy, I should stop watching youtube and innovate something for the blockchain platform, who knows I can become a multi-billionaire sometime soon…

  11. This video makes the basic and very common mistake of confusing Bitcoin and the blockchain. Bitcoin is built on the blockchain. All the advantages discussed in the video are advantages of the blockchain, and not specific to Bitcoin.

    The notion of a distributed ledger based on strong cryptography (like the "blockchain") is interesting, and should see much use. But this is an algorithm, not specific to Bitcoin, and will likely be modified for differing use.

    The blockchain (and similar algorithms) is interesting. Bitcoin is not.

  12. I highly recommend to support such a project like TokenGo! They wants to start a platform which will help new projects to create their own crypto and to participate in the ico! Also, the mining will be avaible too! Now is the pre sale period, u will recieve 50% bonus apart from your invest! Join to our team, the project has a future!

  13. Bitcoin still charges fees to do transfers?…hmm, a Raiblocks transfer is totally feeless…and it's instant, as opposed to Bitcoin, which could take up to many hours to complete a transfer…

  14. Really good comparison! I totally agree on everything and I want to go into detail why bitcoin is a crappy currency: because bitcoin is limited with no comparison to the real world or it’s growing userbase, it is deflating and people only use it as an asset. But its value should be determined by its funktion as a currency, and because it’s an asset it isn’t given away so it’s not used as a currency. As you see this results in a viscous circle and the bubble will burst.

  15. “Dollar is our good currency” It that something associated with the death of gold standard, the Great Depression, the Latin America, Asian, and global financial crises?

  16. Block Chain is like the Internet of the 1980s. BitCoin is like social media's Myspace. Other people with a better concept for a digital currency will overtake it. Meanwhile, the blockchain is a marketable commodity when patents are filed upon it.

  17. If you would have bought $100 in bitcoin when this video came out, you would now have about $1702.

    If you would have invested $100 every month since this video came out, you would have 85,000 dollars.

  18. Crypto-currencies are terrible, unstable, shadow payment methods. The real future of block chain technology is digital currency. i.e. digital versions of state currencies, like a digital US Dollar or digital Euro, controlled by the same central bank as the physical currency of the same name and worth the same, essentially just a digital version of the same currency. All the benefits of instant transactions etc. and block chain technology, without the black market, untraceable and unaccountable wild things that "crypto" currencies today are.

  19. Bitcoin is the most important invention since electricity! It will ensure a fair, incorruptible, inclusive world economy which grows as fast as computers–about 50% per year (Moore's law).

  20. CRYPTO WORLD COMPANY
    INVEST – TRADE – EARN
    SIMPLE – SAFE – SUPER

    https://cryptoworldcompany.com/referral?left=CWC292741

  21. I can't believe this is real .I just got $25,000 through hacked transfer all thanks to expeditetools com .I am still stunned .

  22. Fascinating to see the people invest in what amounts to a profitable scheme. Bitcoin is being propped up by the top owners of bitcoin including bitcoin miners. They are trying to sustain its value under the view that at some point BitCoin will gain broader value and they can sell their coins without causing the value of bitcoin to crash.You also can earn up to $7500 and above in a week with just a minimum investment of $400. Invest through Chuck and have standard chance to a lot within a week. Write to Chuck for more info : Wyvernchuck @gmail . com….<>

  23. Some people ask "Why use Bitcoin when we have credit cards?". Here are some of the reasons Bitcoin is better: There is a fixed supply. You don't get your savings diluted by a country's central bank endlessly printing more money. It is borderless. This means you can send money to any vendors or relatives anywhere in the world 24 hours a day instead of waiting for slow expensive wire transfers of banks that only work 7 hours a day 5 days a week. There is a cost to create it (through the mining rewards) just like there is a cost to mine gold or silver. This gives Bitcoin real value whereas paper currency has nothing backing it (the US dollar stopped having Gold backing it in 1971) and it is inexpensive to print paper currency so the central bank can print a lot of it thereby inflating your money away. It is much cheaper to use than credit cards. Merchants have to pay credit card companies typically 3% or more plus a minimum transaction fee of approximately $2 every time you use your credit card. Bitcoin transactions are much cheaper, typically less than 0.1% which will lead to lower prices for goods in the long run. It is inexpensive to store (you don't need bank vaults or expensive banking computer systems). It is better for the environment. You don't need to support all the tens of thousands of bank branches, all the electricity to power those branches, all the building materials needed to build those buildings, all the gasoline needed for the bank employees to go to work every day. Once a transaction takes place it is final. Merchants really like this feature which is a lot better than credit cards where the transaction can be reversed through a charge back up to 120 days later so a credit card transaction isn't really final for 120 days. You can send very small amounts (smaller than 1/100 of a penny) so new innovative business models are possible such as bloggers or musical artists getting paid a few fractions of pennies every time somebody listens to their song. You can't send that amount of money with a credit card and credit cards have minimum fees so the fee would destroy the value of the money you are sending if the amount is small. It has transparency, since every transaction can be seen by everybody it is much more resistant to fraud. It doesn't require cutting down trees to make paper because it is electronic. Bitcoin is near perfect money.

  24. After 10 years of it's creation, my parents still think it's a pyramidal scheme, but technologically advanced. Whatever I say to them, they'll never change. People are destined to hate what they don't understand.

Leave a Reply

Your email address will not be published. Required fields are marked *