Bitcoin will not be “the” money of the future. It will be “a” money of the future. It will have applicability in the international free market. The free markets in the world have always won and caused for greater innovation. Markets that are not free will fall behind the free markets since a free market sparks the greatest innovation. People can competitively attempt to solve problems. Humans are naturally a competitive species. It is the only way we can prosper.
Outsourcing Financing to Machines
Bitcoin can manage financing for cheaper than the current banks. The overhead to support all of the millionaires and billionaires in our current financial markets is overwhelming. The rich are feeding off of the economy one transaction at a time.
Bitcoin is the Next…
Bitcon is not the next Facebook, Apple, Google or Bank of America. It should be looked at more like the next telephone, internet or e-mail. It is the next step in the evolution of technology on our planet. I wouldn’t be surprised if there are other intelligent life forms in our universe that use, have used, or will use some form of crypto-currency during their evolution.
Bitcoin is a Trustless Currency
The parties do not need to trust each other for an exchange to happen. For credit cards and ACH, a lot of trust is required. That is not so much for the credit card case, but it is not a good experience to have your credit card numbers stolen. Your credit card company is responsible to cover any unauthorized purchases on your account. With bitcoin, if you use it properly, somebody can’t steal any bitcoin from you if you don’t give them your password and/or private key.
Printing Hard Copy of Bitcoin
It will be possible to have a wallet containing bitcoin converted to paper. Further, someone could verify that the paper wallet still contains the bitcoin. This would be done with a barcode. The password could be built into the barcode, so that it could be redeemed by whoever possesses it. A potential security problem for this would be that someone could steal it by taking a picture of it. A scratch off surface such as on lottery tickets could be utilized. A trusted corporation could manufacture a large number of these scratch cards and sell them at a small mark-up. It would be a huge business. The government is not as efficient as the free market! There have already been offline hard versions of bitcoin created https://en.bitcoin.it/wiki/Casascius_physical_bitcoins Casascius. These physical coins can hold value of 1, 10, 100 or 1000 bitcoins. I have a feeling there will be a version two of these items in smaller decrements and cheaper mediums like scratch off tickets.
A bitcoin can be divided up to very small parts. My sample wallet address 1HdXXkqjmHcTdX5FyMMUkARP6i4rtr1C74 from Bitcoin Core currently states a balance of 0.00007303 BTC.
Digital Funds In General
People are going to want an international digital currency. People want access to their funds in any currency that they would want online. This needs to be done without the user having to do any manual actions.