This recent article from Wamda laid out 5 things that bitcoin needs in order to grow adoption in emerging markets. I disagree with most of what was written. In this article I will show why those 5 issues have already been resolved. Finally, I will reveal the only 1 thing that I see bitcoin needing to explode its adoption.
1) Bitcoin volatility is not an issue.
First of all bitcoin already has become less volatile. Second of all, as the market liquidates and stabilizes it will continue to do so. Third and finally, a measure of volatility is good. What is the opposite of volatility? Pegging. No, we want a free-floating coin, which means we will accept some volatility.
2) Bitcoin doesn’t need more exchange platforms.
Sure, we can always use more. A larger network is always a plus, but we don’t ‘need’ more. The number we have, though not optimal by any means, is sufficient to allow functionality. People can buy and sell freely already, and this will only become easier over time. Lastly, exchanges are not really necessary in general. We can always exchange over the counter or outside of the market overt.
3) Bitcoin doesn’t need more liquidity.
The same arguments from #2 apply. We don’t need more, we just want more. We are becoming more liquid everyday and will continue to do so.
4) Bitcoin doesn’t need to be able to be traded for cash.
Bitcoin can develop and is developing an entirely independent ecosystem. People can both earn income and consume using bitcoin. While it would be a great bonus to be able to exchange to trade currencies, it is certainly not necessarily. As more countries including Germany and the US begin to recognize and stabilize legal precedent for bitcoin it is becoming and will continue to become easier to trade.
5) Bitcoin doesn’t need startups.
Actually I can’t argue with this one. If bitcoin did not ever have another startup there is little potential it might survive. Bitcoin does need more start-ups. However I would argue, just as for points 2 and 3, that bitcoin does have a substantial stream of new business development that continues to grow everyday. Despite that fact, it remains true that if BTC startups somehow altogether ceased bitcoin as a whole would probably be out-competed and eventually cease to exist itself.
However bitcoin could never have any more startups if it were not for this one thing I am about to mention. There is really only one thing that bitcoin needs, and it will take care of both bitcoin’s needs as well as all of the wants which have been described in the Wamda article and elsewhere.
The one thing that bitcoin needs is time. Bitcoin is on the right path, it just needs to continue down that path. Everything bitcoin needs is already underway. Bitcoin has startups, exchanges and liquidity entering into the network every day at great speed. Bitcoin is becoming less volatile over time. It is becoming easier to obtain or trade for good, services or other kinds of currency as time goes on.
In conclusion, many of the problems with bitcoin are not problems of need or necessity, but problems of preference. The bitcoin network is swelling rapidly with value and will be able address these preferential issues with just one ingredient, time.
- 5 ways Bitcoin could become the currency of choice in emerging markets (wamda.com)
- Germany Sets Standard for Bitcoin Regulation (bitcoinmagazine.com)
- Argentina Bitcoin Adoption Jumps in Recent Months – Report (onbitcoin.com)