Bitcoin appears to be a paradigm shift in the way we conduct financial transactions. The economic purpose of "money" is to facilitate 'efficient' trade. Period! In that regard, the bitcoin system has no equal. It has a potential to render obsolete a large portion of financial industry (the current middle men) which in US is currently at more than 20% of GDP! Applied globally, the economic efficiency gains are astronomical and that is just scratching the surface. One only needs to look at recent "bitcoin" google trends chart to realize that "the global village" is recognizing the opportunity. The FUNDAMENTALS and PSYCHOLOGY, the two pillars guiding investment decisions are as sound as it gets. Accordingly,
1. LEARN MORE
2. GET IN NOW
Here, we will provide an ongoing analysis of FUNDAMENTALS and PSYCHOLOGY of the bitcoin economy. In the next post, a deeper look at the FUNDAMENTALS...stay tuned. Twitter @bitcoindude
" A Paradigm Shift ". This is the most suitable definition for what is actually going on in the "global village".
ReplyDeleteBut I have something to say about the fact that Bitcoin is a paradigm itself.
For those who are not familiar with the word Paradigm:
A Paradigm is a pattern or model, and if it is later discarded and a different pattern or
model replaces it, we call this process a “paradigm shift.” An example of this is
the Ptolemaic system of the universe in which the earth is at the center of the solar
system, which was replaced by the heliocentric system of Copernicus.
Let's make it more simple.
There is something established that we take for granted. We keep on using it every day. By time we realize that there are some anomalies. If we stop thinking and we analyze these anomalies, we would eventually come to the conclusion that what was taken for granted is wrong and that there is a different way of doing.
The actual "shift" happens when the majority of the people agrees on the new way of doing which of course needs to be demonstrated to be true and workable.
It is worth noticing that The Ptolemaic paradigm of the universe was not replaced so much
by the fact that it was wrong but by the fact that anomalies observed eventually caused the entire paradigm to shift to a new one. A new pattern or model.
Therefore, the way financial transactions are carried out today is our Pattern and observations shows that there are anomalies. But this does not means that the old pattern is wrong at all!! It simply means that nowadays (and only nowadays ), transactions can be done in a different and more efficient way. Thus, we have the paradigm shift.
Bitcoin being merely a tool that might implement the shift.
It is my opinion that the shift might occur but not in the near future and that Bitcoin "economy" needs several adjustments before it could become a catalyst in this contest.
Signed: Twitter @Michele1940