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Bitcoin changes the paradigm of the world's financial infrastructure

Milton Friedman predicted a crypto-currency to arrive on the monetary scene, while Warren Buffett doesn’t get it and discussed it as a ‘fad’ on CNBC Friday morning.

Bitcoin Center offers classes on digital currency
Photo by Andrew Burton/Getty Images

Ariel Deschapell, a finance major from Florida International University, has written on CoinDesk this morning that, 'Bitcoin is challenging the financial infrastructure of the whole global economy, and even more, it is challenging entire generations of established political and economic theory that that infrastructure is built on.'

Bitcoin went through its Wild West days of modern crooks disguised as bank robbers who is today’s computer hacker. Silk Road and Silk Road 2.0 have been closed down by the local sheriff, now today’s FBI and Ponzi schemes have fallen to bankruptcy.

What remains standing is a peer-to-peer twenty-first century crypto-currency that is a decentralized monetization system without geographical boundaries. Benjamin M. Lawsky, superintendent of financial services, took the big leap of faith and officially asked for proposals to create regulated virtual currency exchanges this past week. He had held meetings to review it last January and saw the need for a method of transferring at reasonable cost money out of the U.S. legally and to persons in countries off shore for legitimate and legal reasons as one reason to embrace Bitcoin.

Lawsky discovered as Jeremy Allaire knew when he created ‘Circle’ last year that Bitcoin provided a very cost friendly transfer of purchasing goods without the high merchant fees crippling the business owners. Allaire thinks Circle can fulfill Bitcoin’s promise of cheap, fast, highly secure financial transactions, reported in the Boston Globe this past week.

Allaire has figured out that if you can make near-instant settlements at very little cost anywhere in the world then you have a global currency.

US-based online restaurants’ service Menufy has integrated Coinbase into its e-commerce platform, so restaurant patrons can spend bitcoin at hundreds of US restaurants, announced Coin Desk this morning.

Menufy provides restaurants with e-commerce software and custom websites as part of their membership which is free for each of its restaurants. The approach is rather business smart and useful since most small restaurants do not have their own e-commerce platform, and many don’t even have a web presence. This allows the small restaurant the ability to compete with the large franchises that have more resources to provide a web presence and payment platform.

The current count for Menufy is 400 restaurants in 28 states with a popular concentration in Texas, where Bitcoin has been warmly welcomed and used early on in the Bitcoin movement last year. One Texan who couldn’t spend Bitcoin at the early phase last year flew to Berlin which had welcomed Bitcoin for dinner and hotel stay that accepted Bitcoin.

Bitcoin can be compared to gold which had no geographical boundaries or a centralized banking system. It was considered easily transferred, had purity in its property state and was anti-corrosive state. Bitcoin is valued for its non-destructive ability, quick transfer via the Internet, anonymity and low cost.

Warren Buffett, Nobel Laureate Robert Shiller and economist and author Paul Krugman think it a passing fad filled with potential evil of scams and nefarious thieves. Ben Bernanke, former Federal Reserve Board chairman, Milton Friedman, Entrepreneurs such as Jeremy Allaire and Barry Silbert see a new world evolving in the twentieth-first century for an e-commerce system to meet the monetary exchange needs of the world to come in future decades.

To view more articles on Bitcoin see the list below in Author’s suggestions and the video atop this article about why you should care about Bitcoin.

Twitter: Victoria Wagner@victoriaross888

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