Friday, August 25, 2017

Blockchain, Bitcoin, and smoke and mirrors

I'm reading this article....-

I'm the first person to say one of my best attributes is I'm always happy to ask the dumb questions to get to the bottom of a topic/problem…..but seriously is it just me as “I’ve never understood how Blockchains will help make money transfer more efficient”?

eg you still need someone “locally in Africa” to receive the bitcoin transfer and hand over the cash……..which means they have to obtain the “local cash” from somewhere – either by selling local bitcoin to someone “in Africa” or more likely…”selling the bitcoin back overseas and getting their hard currency outside of the country….but then needing to send it back to themselves locally.

I hope that makes sense.

The 2%-10% of “fee” or “Cut” that they charge for offering the “local cash” is to pay for “interest in having cash sitting around” OR the process of changing far end cash into local cash.

Sure if you can buy a goat in Africa with Bitcoin then having your hard working son/daughter in America sending you bitcoin to buy said goat is a good thing as “zero local fee” BUT…..then this is a bitcoin ecosystem issue and NOT a blockchain related issue.

Like I said….happy to be proven wrong and lots of smart people who can maybe explain what I’m missing better.

I just feel a lot of people use “technical jargon” like “blockchain” because they want to sound smart instead of saying “distributed ledger”….otherwise known as excel spreadsheet.....which I guess doesn't raise investment funding as fast.

Dean 

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