Jon Matonis on The Elephant in the Payments Room

Jon Matonis on The Elephant in the Payments Room:

The latest article by columnist and Bitcoin Foundation board member Jon Matonis (@JonMatonis) is on how Bitcoin is the only real disruptive technology in the payments space but is disruptive in a way that others might be missing.  Excerpts:

“We are witnessing something unique in money and payments.  For those that do invest and successfully navigate the potential traps, the reward is a first-mover advantage for a new international monetary unit.”

Here’s the important part. Disruption in the unit of account is the way to disrupt the payments space.”

“With a nonpolitical monetary unit, many new possibilities become apparent structurally that would not have been contemplated before, such as: peer-to-peer mobile applications that don’t require permission from legacy transaction carriers; global remittances that don’t require high-fee currency conversion; merchant categories that are no longer disallowed due to fraud and chargeback risk; and merchant reach into countries that are not even on the map for Visa, MasterCard or PayPal.”

“Disruptive technology disrupts. That is its mission. It annihilates any substandard process or product in its path and it originates outside of the established paradigm. You don’t see it coming.”

“A payments startup that ignores Bitcoin in its strategic plan is like a publisher ignoring the Web in 1999. Certainly, innovators can design routes around Bitcoin and established players can dismiss it as insignificant, but that won’t make the elephant go away.”

 – (Further discussion of the article)

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