Thought For The Week

Bitcoin Has 99 Problems...But Utility Ain't One

To state the obvious, Bitcoin has problems.

Some say it's major problem is regulation, some say it's adoption, some say it's the underlying technology (e.g. confirmation times, block size etc) and some just don't get it. The reality is all of these are issue that could/are/may impact it's growth. However, the main thing Bitcoin has going for it is that it solves problems - it has utility.

Its utility is undeniable. We're only really just now starting to see the first wave of Bitcoin companies emerge. Many investors are convinced and are pulling out their wallets to prove it - VC funding for Q1 2015 hit $229m.

Much like the internet in 1990, many can see the potential and companies are (slowly) finding the use cases. However, we need to remember that when we first connected to the world wide web (yes, that's what you called it) via dial up back in the 90s it wasn't a smooth process - there were problems. Over time the protocols were agreed upon, the piping got better and most importantly companies emerged who built 'killer apps' that solved real problems.

Like all curve shifting technology that has come before it, Bitcoin offers a truly insightful solution to a matrix of problems we don't yet realise are problems. Give it time, the 'killer apps' will emerge, the piping will get better and people will use the underlying technology - who knows, it might not even be the Bitcoin ledger that we end up using.

--- Alan Tsen, @alantsen

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