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2015 will be the year of cryptocurrency, with a little work

Patrick Nelson | Dec. 12, 2014
Bitcoin keeps growing. We may need to think about it differently, though.

As a consumer, if all you use Bitcoin for is to transfer funds in order to avoid paying the banks' exorbitant fees, the price changes don't matter that much.

Say the transaction takes about half an hour. If your sender converts from U.S. dollars to bitcoins just before the transaction, and then you convert the bitcoins back into dollars when you've received them, you're only interested in that thirty minutes of price movements. It's likely not much and probably still less than a bank wire fee.

So, if you're using bitcoins to make a transfer of value, not store wealth, who cares about price fluctuations?

And it is in this time, Bitcoin's early days, that fund transfers may be where Bitcoin can play best.

An open source developer named Venzen Khaosan has written an article about the differing functions of Bitcoin in, if you'd like to learn more about this idea.

Just numbers
"Unlike with traditional monies and financial systems, cryptocurrencies are just numbers," Šurda says on his blog.

It is still too early to tell how exactly it will all play out, Šurda says of the future. But "unorthodox thinking can help," he says.

If consumers can be encouraged to stop thinking of Bitcoin in wealth creation terms, 2015 could be the year cryptocurrencies take hold-but as a transfer tool. The user just has to ignore the price movements.

Source: Network World


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