What is Bitcoin good for?
Bitcoin is useful for inter-bank settlement, and settlement between parties for whom a transaction carries a high degree of counterparty risk. Bitcoin is an ...
What's up, party people? Chris DeRose here, Community Director of the Counterparty Foundation and in this video, I'm going to talk to you about what is bitcoin good for? And I'm going to do it from the Swap Shop. Swap Shop is a flea market here in West Ft. Lauderdale and it's an old franchise; we have a lot of people that came here. Even Steve-O was a clown at this very flea market at one point in his career. So anyways, what is bitcoin good for? Well, bitcoin has a long history and I think about this a lot and my impressions of what bitcoin is changes as the protocol matures and as the actors and the platform mature. Bitcoin was primarily good for its usage as a currency-like mechanism for a good amount of time.
It may or may not be a currency but it acted a whole hell of a lot like one and a lot of people used it in that function for many years. A lot of the notoriety that we heard about bitcoin was within that framework as a currency. Now, I have since changed my mind about bitcoin to some degree. I think that as a currency it's just fine; it may or may not be a currency but it works like one at the very least. But what I think now about bitcoin is that it is a wonderful settlement mechanism; it's a wonderful settlement mechanism for all kinds of scarce resources and financial transactions. At the current state of bitcoin's development, we are seeing it find its use as more of a tentacle, plumbing if you will, a lower level mechanism for routing of transactions and routing of financial instruments from which other larger protocols are building.
And in the Counterparty project, we make extensive use of this. Because bitcoin is such an excellent settlement mechanism, we can do things like trade assets of companies, assets of shares in a commodity holding, we can do it in ways that perhaps represent dollar bills even in a bank if one were to declare that. But we use bitcoin's properties in the network as a settlement mechanism; we know that when this amount is transferred from this person to that person, that the network will rectify that transfer, it will remain settled after some very short amount of time and if that ledger that is the bitcoin ledger will reflect all of the intent of the actors in a way that it is decentralized and incidentally, or maybe not so incidentally but directly more efficient. In doing all of the work that bitcoin does and doing it in this decentralized way, we cut out the middlemen, that means lower to no fees and we remove the ability for actors to tamper or reverse transactions. So I think that what is bitcoin good for, these days? The best answer is settlement or as a settlement engine for finance and scarce resources. Doesn't mean it's not good for currency, doesn't mean that it is a currency, but it does mean that we can really do a lot of great platform building; huge applications that will be using the bitcoin in the same way that the Internet uses TCP/IP for performing scarcity allocation, tracking management, smart contracts etc.
That's it; did I address your question? Did I get you thinking? Do you have some more questions? Ask your question below and I'll answer them and if you like this video and you want to hear some more questions, I'd love to give you an answer. So subscribe to the channel and party people, peace out.