This is a message to Paypal. Instead of embracing Bitcoin, PayPal could create their own payment processing system using the source code used to create Bitcoin. The idea of wallets, fast confirmations of transactions, anonymity of the users will be preserved. Instead of a coin payment to the miners, offer to pay them in dollars.
Utilizing Bitcoin as the beta-test
we can see that miners are willing to mine for payment. This mining process eliminates most of the fixed costs Paypal has with its existing business model. The minimization of costs will allow for micro transactions to be supported through Paypal.
Paper wallets, Brain wallets, cold storage, etc will be denominated in dollars. Imagine the ability to send dollars from one wallet to another in 30 seconds for a tiny fee. It will open up a whole new world of transaction that doesn’t exist today. Want to send $.20 to a blogger because you like the service that she provides. Now it will be possible with the push of a button.
There are so many micro business models that are sidelined because the fixed cost of moving money has been historically too high. Imagine wiring a blogger $.20? That will cost $20 and clear in two days! Not worth it. So we continue living in the world of “likes”,”retweets” and “favs” that many of us are trying to monetize. Create this payment processing system and these “likes” will be replaced by money for the producer.
PayPal’s name brand in the space, coupled with the frenzy surrounding cryptos, is the perfect storm for such a payment processing system to succeed. Imagine what micro-tranactions will do for Ebay, PayPal’s owner. A person in China could sell the rights to a picture of “Great Wall of China” to a travel advisor in London for $.01 on Ebay. The possibilities are endless and the uptake by society will be a lot faster if the system is fiat friendly.
Last modified (UTC): January 23, 2014 05:16