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| DATE | 2015-09-10 |
| FROM | Ruben Safir
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| SUBJECT | Subject: [NYLXS - HANGOUT] bitcoin usage
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http://www.coindesk.com/forbes-kashmir-hill-how-bitcoin-improved/
Forbes’ Kashmir Hill on What Bitcoin Must Do to Go Mainstream
Pete Rizzo (-at-pete_rizzo_)
| Published on May 22, 2014 at
20:40 BST
Kashmir hill
Forbes technology and privacy writer Kashmir Hill has become one of the
more well-known reporters in the bitcoin community due in part to her
viral 'Living on Bitcoin' experiments, extensive series that have
chronicled her trials and tribulations using nothing but the digital
currency for everyday purchases.
Hill originally conducted the experiment in May 2013
and more recently completed "Living on Bitcoin: Part Deux
"
by popular request, ultimately finding that it has become far easier to
conduct purchases without leaving the bitcoin ecosystem.
In her concluding entry in the series, Hill detailed 21 things she
learned over the seven-day span, and summed up the vast differences
between her experiences in 2013 and 2014, writing:
"Last year, I had to bike or walk anywhere I wanted to go, lost five
pounds, moved out of my home and constantly felt like a crazy person
for asking people if they would accept payment in a made-up currency
they’d never heard of.
This year, I ate a 17-course dinner, went on a wine tour in Santa
Cruz, and was able to use a ride-sharing service for all my trips."
Still, while Hill's experience led her to conclude that the digital
currency ecosystem has come a long way in the past year, she told
CoinDesk there is more that the bitcoin industry needs to do to ensure
the technology is ready for mainstream use, adding:
"I still think that there are too many hoops. [...] I don't think I
would recommend someone to use bitcoin if they have a credit card,
because there are not enough benefits there. [...] I don't think I
would tell my dad to open a bitcoin account."
With this in mind, CoinDesk spoke with Hill at length about her
experiences as a bitcoin-only consumer to determine where she believes
the industry needs to progress to reach what many believe to be its
full, revolutionary potential.
Reducing point-of-sale friction
Hill told CoinDesk that despite bitcoin's promise as an online payments
vehicle, it still struggles to compete with more traditional options at
the physical point of sale, saying:
"In terms of using it to pay for a bag of chips, there are so many
other options. I still think of it as more useful for online
payments than real world ones."
For example, she cited her experience purchasing lunch at Buyer's Best
Friend
,
where she ultimately had to wait more than one hour for the bitcoin
network to confirm her transaction. Rather than opting to try and send
the transaction again (and risk paying twice) — she was left to abandon
her food, finally placing an order via Foodler's website
.
That's not to say all her experiences were full of friction.
Hill noted that one coffee shop in Palo Alto made the experience easy by
using a POS system that displayed the USD and BTC prices
side-by-side for easy comparison.
However, Hill believes that even these newer solutions require upgrades
that balance convenience with the full benefits of bitcoin, adding:
"[The POS system didn't have] the best privacy, because [it used]
the same QR code, so I could theoretically go and look at their past
sales."
Interestingly, she also related how merchants have reported losing time
at the point of sale with bitcoin, simply due to conversations with the
digital currency's avid users.
Fixing the web wallet problem
Another area where Hill believes the bitcoin ecosystem could improve in
the design of its consumer wallets, in particular web-based versions,
though she acknowledges that the industry faces an uphill battle against
Apple
.
Hill explained that, in her experience, even web wallets offered by
major players like Blockchain and Coinbase have been difficult to use.
She reported that with Coinbase, for instance, it was challenging to
figure out how to accept payment, while the way the Blockchain browser
interfaces with cell phone cameras could have been improved.
As a Blockchain and Coinbase app user, Hill didn't need to rely on these
services, but this was only because of her status as a relative early
adopter, having downloaded the apps before they were blocked from
Apple's store.
"If i didn't have those essentially bootleg, banned apps, I would
need to have an Android, because sending it from the webpage version
of those wallets is not easy to do and is not very well designed
right now."
"I think bitcoin's adoption right now is being hampered somewhat by
Apple's dislike of bitcoin transmissions," she added.
Bitcoin banking is key to new markets
One of the more interesting conclusions from Hill's report was her
statement that "bitcoin is an incredibly easy way to instantly open a
bank account".
However, in the interview, she noted that this finding only applies to
certain users at present.
She explained that bitcoin is still more advantageous for those who
can't access traditional bank accounts, such as the 16-year-old bitcoin
fan who commented on her blog
and companies like marijuana businesses that have tenuous relationships
with big financial providers.
Hill continued, suggesting possible areas where bitcoin entrepreneurs
should focus their efforts in order to become a more viable banking
service, saying:
"There's not enough of a bitcoin ecosystem to make it simple. But, I
do believe a lot of these use cases – this idea of a worker in the
US who wants to send funds back to another place, or an undocumented
worker that wants to send money back to their family – being able to
do that in bitcoin might be a good way to do that if they can't open
a bank account."
Bitcoin is best in the background
One of Hill's more notable conclusions was her assertion that bitcoin is
growing up. She said that, in the process, it has become less
ideologically driven in the year since her first 'Living on Bitcoin'
piece, explaining:
"There's been a transition from the quirky weird bitcoin to bitcoin
in a suit, and I like all of those kind of idealistic people who
like the science-fiction quality of bitcoin. Right now, I think that
bitcoin's going through more of its infrastructure growth pains."
When talking about the future of bitcoin's development, Hill noted that
she is intrigued to see how the battle between competing digital
currency ideologies will play out, saying that it remains to be seen
whether bitcoin will become an independent financial network, provide
for easier, more cost-effective payments or both.
While expressing a longing for the earlier, more interesting days of
bitcoin, Hill seemed to assert that the digital currency will have the
most long-term potential if it falls into the background.
Hill cited Circle
and BitReserve
as two companies that were a sign of bitcoin's success, even if they
downplay their use of the technology, as they are looking to optimize an
area that she feels is in need of innovation.
"Bitcoin should make it really easy, the process – especially if you
have an app on your phone – is so much better than swiping a credit
card or if you buy online handing over your name, your address, your
telephone number, your CV code, that is all so painful and bitcoin
is so much better than that."
As for whether there will be a 'Living on Bitcoin: Part Three', Hill is
still unsure.
However, she is currently thinking of ways to alter the format,
recognizing that should bitcoin become even more mainstream, living on
bitcoin may simply be the norm for many come 2015.
/Image via //Forbes/
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