Bitcoin price now languishes in the doldrums, the winds of favourable fortune having departed. But the wind always changes. Right now a slight breeze is stirring which could grow to the storm that sends the next major wave of adoption. The BitWasp project is developing…
Right now, the Bitcoin economy is under pressure from a lack of faith in exchanges. If acquiring cryptocurrency is risky or expensive, it’s hard to attract new entrants. As to expense, in South Africa the Rand market premium on Bitcoin and Litecoin is sheer banditry, approaching 20%. Volume is proportionately tight. The situation may well be similar in many other emerging countries – let me know (GordonHall at Safe-Mail dot Net) if you happen to live in one.
Most developed nations have access to fairly-priced Bitcoin however. Sure, the risk issue still looms large, especially in the wake of Gox, but that makes it a well-known problem at least. There is great economic incentive to solving it, so I’m confident that secure, decentralized exchanges will emerge “soon.”
Another less-recognized bottleneck is the lack of good public marketplaces. This is a very similar problem, an exchange being a specialized marketplace after all.
Again, the developed world has better access, especially to good private marketplaces like Overstock. But where are the trustworthy public bazaars? Since Bitmit and the Silk Road were taken down, trade in goods (and bads) has suffered. While some believe the closure of Silk Road and similar black market operations has improved Bitcoin’s image, ultimately a currency depends more on the substance of trade than the appearance of respectable conformity.
Trade and exchange are the lifeblood of any currency, marketing types notwithstanding. And if there are no safe, convenient ways to trade Bitcoin for goods or vice versa, there is less utility to owning Bitcoin.
Marketplace software is readily available. What’s currently unavailable is marketplace software which is:
This combination of features, if it can be achieved, will allow the Bitcoin economy to expand beyond current constraints. A platform which allows anyone, anywhere, to set up a trustworthy marketplace for anything – this is the necessary flip-side to the Bitcoin.
DPR’s comments after the Silk Road 2 (apparently) succumbed to a hot-wallet hack are clear:
Never again store your escrow bitcoins on a server.
Silk Road will never again be a centralized escrow storage.
This week has shown the collateral damage we can cause by being a huge target and failing in just one unforeseen area.
I am now fully convinced that no hosted escrow service is safe.
If I cannot trust myself to keep a hosted escrow solution safe, I cannot trust anyone.
Multi-signature transactions are the only way this community will be protected long-term.
Trade is too important to human survival to be constrained by the (double) standards of the power elite. Whatever your opinion on unofficial trade conducted through anonymous marketplaces, it’s worth noting that in countries where the fiat system has broken down, the black market is often the only way to make ends meet. As the fiat system is increasingly at risk of serious disruption if not general collapse, I’d rather such markets be tried and tested before they become necessary.
Bitwasp encrypts all private messages between traders as well scrubbing all identifying data from uploaded imagery. PGP two factor authentication ensures a higher level of security. There are also live exchange rates for Bitcoin to major currencies… As per the feature list on the developer forum, it’s shaping up to be a very complete package.
19EkDTAaGWySZv1QsWxyWwYMZpo7jpvPYe is their Bitcoin donation address.
Last modified: May 23, 2020 11:59 AM UTC