5 Interesting Things People Are Saying About Bitcoin

1. "Bitcoin Is A Disruptive Technology"
Forbes contributer Timothy B. Lee called the bitcoin a "disruptive technology," referring to a term coined in Clay Christensen’s The Innovator's Dilemma to describe something that is simpler and cheaper (although often inferior) than what is already in the market. He compares the current bitcoin economy to the PC market in the late '70s in the sense that while it may now just be something that a few nerds are playing around with, the right applications could turn it into something more. From Lee's perspective, "When people dismiss bitcoins because they can’t think of how they’d use it, they’re missing the fact that bitcoin is a platform, not a product in its own right."

2. "Chinese People Will Drive The Next Bull Market In Bitcoin"
Quartz writer Gwynn Guilford offered several reasons for why the Chinese may be likely to join the bitcoin craze. One is the potential of the bitcoin to help the Chinese people evade strict currency controls which can make it difficult for them to buy stuff online. The inability of the government to track the transactions or circulation of bitcoin may make it impossible for regulators to crack down on.

3. Bitcoin "Tells Us Something Important About The Nature Of Money"
Although he calls the bitcoin "ludicrous", Neil Irwin points out that it raises the question "What is money?" He says that we need to think of money as an idea rather than a thing and that it is just "the way we as a society record how much capacity to buy stuff each of us possess." Regardless of whether it is tied to precious medals, or central banks, or very difficult math problems, it is only as good as what you can do with it.

4. "Bitcoin's Volatility Is A Disadvantage, But Not A Fatal One"
Forbes contributer Timothy B. Lee suggests that the bitcoin is volatile because it's a "startup currency" and that its volatility will decline once people learn more about the bitcoin platform's potential. Although he admits that the bitcoin is still likely to have higher volatility than conventional currencies, this isn't as important if we stop making the mistake of thinking of the bitcoin as a replacement for conventional currencies instead of focusing on its potential to serve special niches. In other words, there are cases when the advantages of using the bitcoin may be worth the extra volatility.

5. Bitcoin "Says Something Important About The Current And Future State Of The Global Economy"
Times writer Micheal Sivy wrote that the bitcoin's recent gains are not merely a result of speculation but also reflects "anxiety about the safety of the global banking system and the stability of major international currencies." Internet currencies may offer an alternative for investors worried about government control and fiscal policies. Bitcoin may just be the beginning.