Bitcoin Is Going From Deceptive To Disruptive, says Peter Diamandis

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September 24, 2014

Renowned futurist Peter Diamandis, the author of Abundance – the Future is Better Than You Think and founder of the XPrize and the Singularity University, believes that Bitcoin is “going from deceptive to disruptive.”

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Writing on Forbes, he says:

“At its core, bitcoin is a smart currency, designed by very forward-thinking engineers. It eliminates the need for banks, gets rid of credit card fees, currency exchange fees, money transfer fees, and reduces the need for lawyers in transitions… all good things. Most importantly, it is an “exponential currency” that will change the way we think about money. Much the same way email changed the way we thought of mail. (Can you remember life before email?)”

“Bitcoin is living on Moore’s law and hopping on the exponential curve,” says Diamandis. It follows “the 6 Ds” – Digitized, Deceptive, Disruptive, Dematerializing, Demonetizing, Democratizing – and is beginning to disrupt finance on a global scale by dematerializing (read: eliminating) the need for central banks, lawyers and currency exchanges, and making currency and capital available to anyone with a connection to the Internet.

Exponential Finance

CNBC and the Singularity University presented Exponential Finance in June, a two-day conference in New York City that addressed upcoming, game-changing technologies and their imminent implications for the financial world. Besides “Singularity technologies” such as artificial intelligence, quantum computing, robotics and synthetic biology, the conference addressed digital currencies and smart contracts.

One of the Exponential Finance speakers was Barry Silbert, the creator of SecondMarket and the Bitcoin Investment Trust, a private, open-ended trust that is invested exclusively in bitcoin and derives its value solely from the price of bitcoin. Silbert is also one of the most prolific angel investors in the bitcoin space via his personal investment vehicle, the Bitcoin Opportunity Corp. (now , with investments in over 20 bitcoin-related companies, including BitPay, Coinbase, Gyft, BitPremier, Coinsetter, itBit, Ripple Labs, Korbit and BitPagos.

Diamandis reports that Silbert outlined five phases for Bitcoin that help explain where it’s been and where it’s going:

“Phase 1: The period 2009 to 2011 was the early ‘experimentation phase’ for bitcoin (i.e. deceptive). Here the software is released to public and most technologists and hackers started playing with the code. During this phase, there was no apparent value to currency yet; mining bitcoin was easy and could be done by a single person on a MacBook or PC.

Phase 2: 2011 marked the beginning of the ‘early adopter’ phase (still deceptive). There was a lot of early hype and press around Silk Road (where you could buy drugs). The value went from less than $1 to over $30, then crashed. This spurs the first generation of bitcoin companies to build basic infrastructure: wallets, merchant processors, mining operations, exchanges, etc. – i.e. the early user interfaces.

Phase 3: 2012 thru mid-2014 marked the beginning of the ‘Venture Capital Phase.’ Folks like Marc Andreessen, Google Ventures, Benchmark and others have begun investing in Generation 2 Bitcoin companies. We are right in the middle of Phase 3 right now. Thousands of bitcoin companies are getting funding. Many of these are trying to create the ‘User-Interface Moment.'”

The disruptive phase of Bitcoin

What will come next?

“Phase 4: Fall 2014 thru 2015 will like see the start of the Wall Street Phase. Here we will begin to see institutional money acknowledging digital currencies as an asset class, and they will begin trading it, investing it and creating products around it. This marks the start of the disruptive phase.

Phase 5: Finally will come the ‘Mass Global Consumer Adoption’ phase – this is where bitcoin becomes a major player in the global economy. When consumers feel it is easy, safe and secure to use bitcoin.”

Diamandis believes, as does Silbert, that Phase 5 is only 1-2 years out.

Images from Shutterstock

Last modified (UTC): September 25, 2014 10:44

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