Transaction rate is all down to speculation.
Payment systems already work fine with minimal cost. Store of value: yes you cannot overissue but the speculation tide could go out removing the store of value. Gold was/is volatile.
Payment systems already work fine with minimal cost. Store of value: yes you cannot overissue but the speculation tide could go out removing the store of value. Gold was/is volatile.
Did you read what I wrote? "this indicator is not typically impacted by mere speculators: buying coins and leaving them on an exchange does not create a transaction"
«Payment systems already work fine»
It took me 7 days to move $300k from one bank account to another, because of closures on weekends & ACH limits. This is not "working well". With Bitcoin I can move $100k+ in ~10 minutes.
I have had many instances of credit card payments being declined while travelling internationally due to false positives from anti-fraud systems. This is not "working well".
In 2013 I couldn't even pay my rent using my bank's electronic payment system, even though my landlord and I had the same bank, because of arbitrary policy limit of $2k/mo for personal payments. This is not "working well".
I have had paypal steal ~2% through forex fees for a transfer to my family overseas. This is not "working well".
I have had fraudulent merchants stealing my CC info and created a bunch of hassle that took me time to sort out. This is not "working well".
And so on. Bitcoin may not be perfect, but it solves all these scenarios incredibly well.
Regardless, the problem of cryptocurrency theft has been largely solved by hardware wallets and multisig wallets: there hasn't been a single documented case of bitcoins stolen from such a device. Also phone wallets, as long as running on a stock iPhone or Nexus/Pixel with recent security updates, are decently secure. And you can back up the seed of hw & phone wallets, so there is no risk of losing the coins if the device gets destroyed/misplaced.
You can move the bitcoin equivalent of $100k+ in 10 minutes. It'll take you longer than a week to convert to cash (not to mention the cost you'll be paying in fees). Plus you still have to deal with all the regulatory checks (unless you think you can get away with laundering money)
Incorrect. I trade at Gemini where I can sell BTC and wire the USD in less than 24 hours to a bank account.
I'd argue the opposite: this is working well.
Imagine travelling overseas, you go to pay for a coffee only to discover you've had all your cryptocurrency stolen. Who you gonna call?
Cryptocurrency theft has been solved: https://news.ycombinator.com/item?id=15229869
Cryptocurrency theft has been solved by hardware wallets?
What happens when you lose your hardware wallet? Now you have to restore from backups, if you have them, but they're in cold storage 4000 miles away.
Yes the systems are nice. In theory. But when they cause more problems than they solve, that's not "working well". Bitcoin's systems to prevent loss are hardware wallets, and multisig addresses (eg. requiring 2-of-3 wallets/persons/automated systems to approve a transaction).
«Now you have to restore from backups»
The backup is simply a list of 12 words. Write it somewhere safe. Split the list. Memorize it. Hide it. Store it via steganography in an image in your email account. Whatever. It's easy to hide and have it accessible 24/7.
I'm willing to bet traditional payment card anti-fraud and consumer protection systems are solving more problems than they cause.
So you have been inconvenienced by them on occasion. That says nothing for the frequency these systems work as intended.
> The backup is simply a list of 12 words.
I wasn't aware of that, thanks for clarifying.