Is the bitcoin project done?
October 18, 2011
Many are asking if the bitcoin project is done. According to ounce.me.
Many major media outlets (Wired, Ars, Forbes) are stating that it’s over. I personally invested a large sum of time and money into bitcoins building a bitcoin bank. The success of my investment however isn’t based solely on what I put into it, it’s what the community does as a whole with the entire bitcoin project. I felt I did my part to make it survive. However the amount of investment is dwarfed by the amount of unbridled mass printing of bitcoins. There is no way that any individual or organization could keep up with a near 5 bitcoins per minute inflation rate.
This means that more people need to join the project, but with prices collapsing it’s becoming harder and harder to see it.
The P2P project most likely isn’t “done” however, but it is a wounded beast that needs serious investment in order to survive. Hacking, business security, ease of use are all factors. It’s too technical for grandma to use yet is too easy to hack.
The problem drives down the investment and adoption. If it remains too hard for the average person to use it then bitcoins will forever be an interesting blip on radar that perhaps one day people will cite it in research papers. “Back in the 2010′s the first cryptocurrencies showed up, however they were before their time”
So we’re at a crossroads with bitcoins. Either they will stand or they will fail, in order for them to fail we just have to continue down the road we are on. If we want them to survive then people that adopted them must fight to make them survive. That means more direct investment, more businesses opening that accept them, a general push to make them more secure and easier to use.
That’s not what we are seeing now. What we are seeing is a slow down in adoption that is directly related to the price displayed (currently $2.50 per bitcoin, down from $35 just a few months ago).
At that point (in June) bitcoins traded for about the same as one ounce of silver. Near Parity with American Silver Eagle.
Today that same silver eagle could buy multiple bitcoins, within a few months it’s possible at current trajectories that that single ounce of silver could buy 50 bitcoins.
Invest in bitcoins or let them crash, pick one. I choose to invest.
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