After The Hype, This Is What Is Being Done to Make Bitcoin Something Mainstream

The news about Bitcoin have they been relaxed a bit in the last few months. And is that all technological innovation (and Bitcoin is a new technology but also economic development) has its moments and then comes the calm. But we are in a rather special calm because despite the strong crisis suffered by the cryptocurrency, is it still used.

Once past the novelty It is the time to reach normal people. So Bitcoin succeed one time for all must be something very technological, only suitable for people with great knowledge, and become popular, mainstream. Let’s look at the steps being taken to do so.

Ease of use

The first thing that has to improve Bitcoin is ease of use. There are two ways to use Bitcoin. On the one hand you can directly control the private key. This is, to use software on your computer, mobile or tablet directly generate public and private Bitcoin account keys and that store securely private, which is the lock of the cage that has the Bitcoin (by somehow summarize the Bitcoin system: all the money is in a P2P cloud) (, and you can only spend the associated with the public accounts if you have the private key).

This way of proceeding has its advantages and disadvantages. The main advantage is that you have complete control of your money. If you do not steal this password, which is stored on the device, they can not steal money. It is as if you would take the Bitcoin over.

The main problem is that its use is complicated (talk about someone who does not know Bitcoin download software, generate keys, etc.), which have no real control over the software that you use (even if you have very careful not to teach anyone your private key the software can do it) and that access is linked to that device (i.e. We cannot enter into an Internet Cafe and access our Bitcoin).

The second method is to have an online account on a service that manages the keys for you. There are quite a few and there are from least to most sophisticated. For example, there are those that simply keep the private key under a password and provide the functionality of transfers; also (for example Coinbase) there are more advanced that let you add Bitcoin to the account using credit card.

In the end this second method is the easiest for a normal user. Its use is much like a bank’s online, you just have to enter a site, whether from mobile, tablet or computer and from there you can access all the money. And there is a tendency to hide in this type of online services all the technical part of Bitcoin. The idea is to make it simple users have to see that using Bitcoin is similar to using an online bank. The concepts of block, undermine, hash, number transaction, etc. are for experts, normal users should simply know of transfer or receive Bitcoin.

Security

Another problem facing Bitcoin to be popular is the security. We have already seen in the past Bitcoin multi-million dollar theft. The most serious was the Mt Gox, which in its day was the largest home Bitcoin of world change. Their problem was that they were stealing them Bitcoin due to breaches of security and acababaron declaring bankruptcy.

This kind of news does not help to popularize Bitcoin among the general public. But after several similar news companies that are dedicated to the world of the criptomonedas have understood that what they do is a banking business (although not regulated) and are therefore exposed to theft (as in the American West of the 19th century) and users must be provided them security above all.

That is why it is interesting to see how there is web access to Bitcoin increasingly professional initiatives. Recently launched Circle, which is an account (similar to Coinbase) Bitcoin online but with some special features. Featured are two: first, the ease of use, hiding the complexity of the Bitcoin system to its users. The second, and very important, safety. Similar to a bank cover losses by theft, Circle also. If someone enters your system and steal the Bitcoin, user not affected it. Is the same as If someone steals your banking branch, your account is not affected.

This is very important because until now there have been two problems with thefts of Bitcoin. The first is that the websites that provide access to your Bitcoin really all they do is put a more or less friendly interface to your private key. But if your private key is compromised, your fault or the fault of the web, the balance goes away. The bonding is immediate, it is impossible to eliminate. Unless the entity managed in a different way, counting separately customer balances and actual accounts of Bitcoin, which is what seems to make Circle. So if they’re stolen, they claim your balance. Another issue is If they will have enough capital to deal with this risk if it is concrete. Mt Gox tried and failed.

Micropayments everywhere

Apart from ease of use and security there is a third leg for the use of Bitcoin is popularized. We already have financial tools simple, secure, such as bank accounts and credit cards, so: Why should the use of Bitcoin become popular? Many who read these pages or the financial might think that you to cover the risk of devaluation, but actually the general public does not usually think about these issues.

The great problem of the existing means of payment are currently commissions. And it is that commissions may not be very significant for certain purchases that are for micropayments. And it has been shown that micropayments are very popular, there is more to do sales of mobile applications stores and PC.

If such transactions not be popularized more is because the commissions are very significant. And with Bitcoin this can be reduced, because commissions to make a transfer are very low (non-zero, since there is a computational effort and to offer any Commission to the miners to process).

With a popular Bitcoin could see micropayments everywhere, in fact circulate some very interesting ideas. For example, by having less Commission the economic prices of applications might be even lower. Or so discussed payment for content on the web could take off. Or we could spend karma systems in forums and social networks to a system based on micropayments that rewarded the good comments (Do not you pay a euro cent for a good comment if you did with a single click? With a credit card, it is unworkable).

I’ve been hearing talk about micropayments as the future of the Internet from the mid 90s, and although the application stores have been in recent years that it breaks off, we’re not where expected. And the problem is still that of always, international financial actors not just interested: is more jugososo to manage millions of trasnsacciones of tens of billions of transactions of euro cents euros. And it is not only by greed, the financial system has a cost when you make a transaction, but Bitcoin not.

Ultimately the success of Bitcoin will depend on many factors. The first step is given, since every time you hear about more of this coin and has weathered several crises such as the fall of Mt Gox or Silk Road closures. But we are on track, with more and more simple solutions to use, secure and good ideas on the table. We are closer to that Bitcoin is something mainstream and it can be a very interesting time.