Menu IconA crypto anarchy stack of three evenly spaced horizontal lines. We found this on Reddit, where James Bamford, a veteran reporter with 30 years experience covering the NSA, is answering questions from the community. Take it with a grain of salt.
The only thing to fear is fear itself. Bitcoin Guru and Investor in Bitcoin companies such as Armory and Kraken, explains the network effects that will lead to Bitcoin’s continued success. Merchant Adoption — Merchants will increasingly accept Bitcoin because they can increase their profit margins by avoiding credit card fees and chargebacks. Consumer Adoption — Consumers can use Bitcoin to save money at certain vendors. Amazon by spending Bitcoin through Purse. Consider: An American can buy Persian rugs or Cuban cigars online despite trade embargoes.
Security — Merchant, consumer, and speculator adoption lead to a higher price and thus incentivize more miners to participate and secure the system. The decentralized, immutable transaction ledger also serves as a form of Triple Entry Bookkeeping, wherein Debits plus Credits plus the Network Confirmations of transactions increase trust and accountability across the system. It is fertile ground for the development of complicated algorithms, machine-to-machine payment protocols, smart contracts, and other tools. Its decentralized nature allows for innovation without permission.