Bitcoin: the effect of 20MB blocks on bitcoin’s value proposal

Part 1: The secondary, and then primary, way of spending money on the internet.

Bitcoin will slowly gain traction as a valid way to spend money across the internet. There are two chiefs reasons for this; one economical and the other psychological. First, in keeping with the main focus of the site, let’s go with the economic reason.

Simply, Bitcoin is a cheap way to transfer money across the web. As businesses continue to pop up across the web that allow consumers to buy bitcoin nearly instantaneously, these consumers will find it a more and more attractive option to capture the price discounts that businesses will increasingly offer as it becomes easier and cheaper to accept it. If things can be done cheaper, even if it requires the toppling of industry giants, it will be.

bitcoin advantages
Bitcoin Advantages

While it is possible, and in fact increasingly probable, that Bitcoin popularity will hit a point in the relatively-near future where it sees an explosion of growth and usage among the general population, it is unlikely that the now-popular methods of transferring money across the internet, such as credit cards and services such as PayPal or Square, will fade away as quickly as some of the more – optimistic supporters believe.

Eventually, Bitcoin will overtake the contemporary systems of sending money. The companies that offer these services, fearing their future irrelevance, will find ways to implement the protocol under their own products – in a way that end-user may very well be unaware of.

In lieu of traditional transactions, offchain transactions will prove to be a way for more and more users to instantaneously confirm transfers as they are offered as a service through trusted third-parties at substantially less than even the current average transaction fee. Eventually, everyone will have easy access. This will lead to widened application possibilities for Bitcoin and make it a much more practical way to send money online.

In summary, the future is bright.

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