No Coindesk, Microsoft Does Not Have An “Aggressive Global Vision for Bitcoin”
Coindesk is the largest crypto-currency publication out there but that does not make them a good source of information. That is evident in a recent article of theirs where they try to make an article out of nothing, claiming Mircosoft has these huge global plans for bitcoin.
Everything in this article relies on the testimony of BitPay’s chief commercial officer, Sonny Singh. None of this is referencedto any degree in Microsoft’s official blog post about their integration of bitcoin (for some of their U.S products). Besides that, the points made aren’t even likely or logical.
“Microsoft moved fast to integrate bitcoin in time for the holiday.”
If so, then why did they miss the biggest day for holiday spending — Black Friday. More importantly, why did they miss your event — Bitcoin Black Friday? If they really cared about making sure it was in time for the holiday season they would of integrated weeks ago, not two weeks before Christmas day and a week after the biggest shopping day for the holiday season.
Also why would they care? Bitcoiners are such a trivial group for the second biggest company in the world. Even if every (U.S) bitcoiner bought Microsoft’s products, it would be a rounding error for the company. As I already stated, their actions shows they don’t really care about getting the bitcoin dollar (for lack of a better word) during this holiday season.
Do they have a plan to expand bitcoin to other regions? Maybe. It could also be that BitPay is trying to blow smoke. But if so, give me some details then. What is the time frame? What is the motive? (And not the one you project onto them.) Without this it is all a guy’s heavily unsupported opinion.
“They already did their homework on bitcoin, and were more interested in BitPay,”
So why did BitPay contribute to this bias piece of journalism and act as Microsoft’s hypeman?
This year’s Bitcoin Black Friday, a day that was huge for the company last year, was less successful this year. It is true the mainstream Black Friday sales suffered as well this year, but that is the mainstream. This is the company who claims they have been processing $1m of bitcoin sales everyday during this year, a number which they reported as the total sales of their last year’s Bitcoin Black Friday. This is the company who says they have double the amount of merchants accepting bitcoin through their platform. Lastly, this is a sector of the bitcoin economy which they claim to be leading and has had tremendous growth and yet, despite all of this they still were not able to break even with last year’s sales. That is some pretty depressing news for a company whose sole business is merchants.
Me. Me. Me. Look at me. Their blog post was titled “Microsoft Chooses BitPay to Power Bitcoin Payments”. This obviously shows how happy they are to get one of the few billion dollars in revenue companies who have started accepting, as they should be. But while those types of companies are rare for bitcoin, they are even rarer for BitPay compared to its competition. Out of the 10 (now 11) billion dollars in revenue companies that have started accepting bitcoin in 2014 (no company of that size accepted it before), 9 of them have accepted bitcoin through BitPay’s rival, Coinbase. Again pretty damning news when all your products revolve around merchant adoption and payment processing.
“Buttcoin is in full emergency mode, they’re running out of crap to spew.”
Besides never underestimating the commitment of truly annoying trolls, it is this kind of attitude that shows BitPay is not the only one participating this merry go around echo chamber. Coindesk and the bitcoin community at large is on it too.
Coindesk is obviously trying to pump this as much as possible and get as many websites hits out of it as they can. They are willing to throw away truth and probability for a opportunity to get some more readers. Of course, this hurts — their already heavily trashed — reputation for being an honest and reliable source of crypto-currency news but they don’t seem to care. Remember them reporting ISIS accepting bitcoin with a hyperlink source that went to no where.
But the bitcoin community is far more interesting (and important). Despite proclaiming they are holding for the long term and criticizing altcoin believers for their over enthusiastic reactionaries to positive news, being overly optimistic and idealistic, and trying to move the price of their various coins up — bitcoiners are doing just that. They are really looking short term and trying to make this out to be something it isn’t. They are all making claims of this huge and the price is going to rise, but it isn’t.
The price has actually lowered since the announcement. It was the same when PayPal started accepting bitcoin. This is not a world changing moment for bitcoin. It is big achievement but not the tipping point. Not anywhere close!
Despite what regular folk (and bitcoiners) will tell you, merchants don’t mean much. It is not a source of major value for bitcoin. Bitcoin does not need to be validated by these huge companies for it to be successful — it needs to work properly and smoothly. There are currently a lot of kinks in bitcoin right now. Ease of use, security, and other issues make it unpractical for many potential applications (like payments).
Think long term. Think of bitcoin as a startup. A currency, but nonetheless a startup. While it is important to have a minimal viable product, these are early days and research and development are top priority — not huge use. You want to get some use by super users (the early adopter like you and me) who already find it practical but it is not for the public as a whole. Why? Because they don’t want it no matter what you say. It does not meet their value proposition, at least currently.
This is a time for R&D and investment. These are early days for bitcoin and the equivalent of seed or series A funding for bitcoin would be hold your onto bitcoins as hard as you can.
Get cheap bitcoin “equity” now, while you can with the realization that bitcoin has very little utility today (99.99% of the world’s population) but 10 years, 25 years, 50 years it is going to have huge — gigantic! Bigger than the Internet could ever be!