As I pointed out in the start of the essay The Revolution of Bitcoin Banking, we are still in the 11th century of online exchange with bitcoin. Today we are slinging around digital coins online using quite real value; which does not have any real difference from paying for any goods or services together with gold or cash. While this does not seem to be a problem right now, we need to remember that we live in a modern society where such primary transactions reach their limits rather quickly. What we want are complex kinds of contracts that could create insurance, debt, and other types of contracts. In other words, we want real fund and not simply cash.
While I don’t feel that bitcoin will ever fade as a storage of value, it will seem to be a powerful payments system. Though the ‘has been bitcoin a storage or payment of value program’ debate has been going on from the start of bitcoin, it has more recently picked up steam using the blocksize debate. No matter if bitcoin does increase the blocksize or not it may not matter very soon, and That’s because of the following celebrity We’re seeing rising to choose bitcoin’s location less a currency system, but as a fund system: Ethereum
Ethereum was created by Vitalik Buterin in late 2013. It was not developed as a altcoin, but instead as a full contracts platform to have the ability to work as a coating on top of bitcoin, or some other electronic money for that issue. To sneak a remark I found on /r/Ethereum, bitcoin is to electronic gold because ethereum is to electronic oil. Ethereum purpose is not to become a deflationary cash like bitcoin, however, a contract stage along with the motor of electronic finance.
Maybe this will ultimately answer the query; is bitcoin a storage of value or a payment method? It seems like it may function as next, but it’s much better as the former. Whereas Ethereum was built specifically to produce contacts and has a higher inflation rate to account for its stronger utilization of Ethereum. What bitcoin is to hard cash, Ethereum would be to fund.
Ethereum allows the bitcoin bank that I talk of in The Revolution of Bitcoin Banking. This could realistically do is create a strong full banking and fund platform that’s finished decentralized and non-state based. This is the way the world wide web not only gets its own cash, but its own banking system, economy, and also the resources for electronic natives to secede from our existing economies to new electronic ones.
Ethereum is your ubermensch of all bitcoin. It doesn’t just wishes to be all that bitcoin is, but it also moves beyond and over bitcoin to create something larger, something beyond it. Bitcoin has masqueraded as a payment method for long enough, and now it can come to accomplish that which it was made for: to develop into the storage of value for the contemporary technological world, and to create the base value for its future electronic economies that will come to govern the world.