What's the use for Bitcoin? • Hacker News Board

Re: What's the use for Bitcoin?

#21

Post by w-ll » Thu, Apr 02, 2015, 5:33 PM UTC

georgyo wrote: post #15

cporios wrote: post #9

Earlier quoted context omitted.

> The problems Bitcoin claims to be trying to solve were already solved by the banks a while back. Bitcoin (according to its website) claims to provide instant P2P transactions and very low processing fees. International bank transactions take days or weeks and have very high fees. But even more importantly, bitcoins do not require a bank account. All it requires is internet or text messaging access. This is very imp…

It still requires a bank account, just a difference sense of the word. If someone only has a phone, they need to store their bitcoin somewhere, and its unlikely to be their phone. So whoever is holding their bitcoin is acting as their bank.

You dont store Bitcoins, you store the private keys to wallets, which are tiny in size and there are many mobile Bitcoin clients.

Re: What's the use for Bitcoin?

#22

Post by spectrum1234 » Thu, Apr 02, 2015, 5:33 PM UTC

Bitcoin is all about the underlying PROTOCOL, not the currency itself. Note that the currency only has value because the protocol is sound.

What is the protocol? Basically it allows you to trust a network in which you don't have to trust any participants. Think about that for a minute - THIS IS A PHENOMENAL ACHIEVEMENT.

Use cases for bitcoin? Who cares. Use cases for the protocol? Countless. Just give it time. Its existed only for ~6 years people!

Re: What's the use for Bitcoin?

#23

Post by random28345 » Thu, Apr 02, 2015, 5:34 PM UTC

bdamm wrote: post #4

Useful but not on his list: * Bitcoin is excellent as a charity funding mechanism. Often I may wish to give to a charity, but don't want to give out my credit card number. I give up my tax credit, but for small handouts that's quite alright. * Micropayments. There is simply no other infrastructure that does this as well as Bitcoin does, because processing fees dominate.

> Micropayments. There is simply no other infrastructure that does this as well as Bitcoin does, because processing fees dominate.

You mean aside from currency conversion fees, the transaction fees (https://blockchain.info/charts/transaction-fees) and the massive $6,000 to $25,000 block reward?

If you do the math, bitcoin is easily the most expensive currency to transact in, and least economically efficient currency relative to legitimate economic activity generated.

Re: What's the use for Bitcoin?

#24

Post by rthomas6 » Thu, Apr 02, 2015, 5:34 PM UTC

cporios wrote: post #16

According to this half the world's population is unable to get a bank account: http://mckinseyonsociety.com/half-the-world-is-unbanked/ Bitcoin allows for anyone with internet or even text-messaging access to hold, receive and send money. To me, this seems revolutionary. I don't know how the author can ignore this.

There are things that the third world already uses for this purpose, such as M-Pesa. Money through SMS is already in wide use, for millions, right now. How can I send someone bitcoin through text messaging? http://en.wikipedia.org/wiki/M-Pesa

Re: What's the use for Bitcoin?

#25

Post by quinnchr » Thu, Apr 02, 2015, 5:34 PM UTC

aboutus wrote: post #6

I derided Bitcoin and cryptocurrencies in general until I seriously looked into it, and then I could hardly sleep for days because of the huge implications of it. Bitcoin allows people who are unbanked, especially in developing countries, to hold and transmit money across the world at practically zero cost. Since bitcoin is decentralized, there are no middlemen like banks to take a cut or freeze your account. Besides…

Except the unbanked have been transmitting money across the world outside of banks for a few centuries now: http://en.wikipedia.org/wiki/Hawala I'm not so sure Bitcoin is a ground breaking change for the unbanked in developing countries, especially when the hawala market is substantially bigger and already widely used.

Re: What's the use for Bitcoin?

#26

Post by jjbiotech » Thu, Apr 02, 2015, 5:35 PM UTC

random28345 wrote: post #14

aboutus wrote: post #6

I derided Bitcoin and cryptocurrencies in general until I seriously looked into it, and then I could hardly sleep for days because of the huge implications of it. Bitcoin allows people who are unbanked, especially in developing countries, to hold and transmit money across the world at practically zero cost. Since bitcoin is decentralized, there are no middlemen like banks to take a cut or freeze your account. Besides…

Bitcoin is for Criminals, Cowards, and Crazies. Criminals, who find it useful as a mechanism for transferring and storing income from illegal activities. Cowards, who want to hide behind a cryptocurrency to protect themselves from social and government problems that can only be solved through education and democracy. And crazies who think that Obama is a secret atheist muslim who is fighting a secret war of confiscat…

Physical currency such as gold or cash is for Criminals, Cowards, and Crazies.

Criminals, who find it useful as a mechanism for transferring and storing income from illegal activities.

Cowards, who want to hide behind physical currency to protect themselves from social and government problems that can only be solved through education and democracy.

And crazies who think that Obama is a secret atheist muslim who is fighting a secret war of confiscation and redistribution against America.

> new allegations that it was the US Feds that stole the money from Mt. GOX users

Which category do you most identify with?

Re: What's the use for Bitcoin?

#27

Post by tikhonj » Thu, Apr 02, 2015, 5:35 PM UTC

random28345 wrote: post #14

aboutus wrote: post #6

I derided Bitcoin and cryptocurrencies in general until I seriously looked into it, and then I could hardly sleep for days because of the huge implications of it. Bitcoin allows people who are unbanked, especially in developing countries, to hold and transmit money across the world at practically zero cost. Since bitcoin is decentralized, there are no middlemen like banks to take a cut or freeze your account. Besides…

Bitcoin is for Criminals, Cowards, and Crazies. Criminals, who find it useful as a mechanism for transferring and storing income from illegal activities. Cowards, who want to hide behind a cryptocurrency to protect themselves from social and government problems that can only be solved through education and democracy. And crazies who think that Obama is a secret atheist muslim who is fighting a secret war of confiscat…

BitCoin, or at least decentralized currency in general, is great for anyone for whom the current system isn't. People whose interests are do not align with the majority. The disadvantaged. Non-conformists. Individualists and free thinkers.

To some, indeed, such people are all "Criminals, Cowards and Crazies". But that just makes a stronger case for why something like BitCoin is needed.

Re: What's the use for Bitcoin?

#28

Post by jerguismi » Thu, Apr 02, 2015, 5:36 PM UTC

Why is not speculation/wealth storage not an use case?

Re: What's the use for Bitcoin?

#29

Post by zzleeper » Thu, Apr 02, 2015, 5:38 PM UTC

random28345 wrote: post #14

aboutus wrote: post #6

I derided Bitcoin and cryptocurrencies in general until I seriously looked into it, and then I could hardly sleep for days because of the huge implications of it. Bitcoin allows people who are unbanked, especially in developing countries, to hold and transmit money across the world at practically zero cost. Since bitcoin is decentralized, there are no middlemen like banks to take a cut or freeze your account. Besides…

Bitcoin is for Criminals, Cowards, and Crazies. Criminals, who find it useful as a mechanism for transferring and storing income from illegal activities. Cowards, who want to hide behind a cryptocurrency to protect themselves from social and government problems that can only be solved through education and democracy. And crazies who think that Obama is a secret atheist muslim who is fighting a secret war of confiscat…

So I was kinda agreeing with you, but a quick google search did turn out some insane accusations made by the US Govt that rogue DEA officers were behind retaliations to MtGox, including seizing 5MM of cash.

Not so sure what to think anymore..

Re: What's the use for Bitcoin?

#30

Post by evbots » Thu, Apr 02, 2015, 5:39 PM UTC

Mikeb85 wrote: post #12

cporios wrote: post #9

Earlier quoted context omitted.

> The problems Bitcoin claims to be trying to solve were already solved by the banks a while back. Bitcoin (according to its website) claims to provide instant P2P transactions and very low processing fees. International bank transactions take days or weeks and have very high fees. But even more importantly, bitcoins do not require a bank account. All it requires is internet or text messaging access. This is very imp…

> International bank transactions take days or weeks and have very high fees. Not really. I mean, I'm sure they can if you're moving millions, but small transactions are pretty much instant, even internationally, at least between modern banks in 2 countries. And the fees (if there even are any) are negligible. Anyhow, that's my experience with my bank. I do know that American banks can be behind the times a bit...

ACH bank transfers in the united states take on average 2-3 days to clear. Instant may mean the funds are available at your bank, but the clearing process may not be complete.