Finding Business Model Opportunities in Bitcoin – Inside Bitcoins NYC
Trends to watch and how to think about Bitcoin as a business
At the Inside Bitcoins NYC conference, Coinsetter CEO Jaron Lukasiewicz spoke to a packed crowd. His message: the current financial system is outdated and relies on critically dated infrastructure. He believes that “people involved in Bitcoin [are saying] this is not acceptable anymore.”
Exploring the current financial system he points to three to five fund transfer times under ACH payments and drawing experience from his previous startup in ticketing, companies paying over 40% of revenues out in credit card fees. Basically, in 2013, it is still exceptionally difficult to send money to a friend and this is leading to a customer revolution.
Today, he proposes, Bitcoin is the dominant virtual currency. Not simply in terms of transactions and value, but based on awareness – including awareness outside current users of the market. The first mover advantage is significant and Mr. Lukasiewicz asks us to spend time thinking about how it has the potential to become an “IP address for money.”
Coinsetter is a leveraged forex trading platform, focused on active traders. Originally he questioned the number of exchanges being set up at the moment and why there isn’t an original business model. On reflection he thinks this is actually important. The more liquidity that comes into the Bitcoin system, the better. It will draw more users; innovation and a greater focus on customers. The latter being a key concern for Mr. Lukasiewicz, there is “room for a lot more exchanges to come online, but it is important to focus on a particular customer.”
Bitcoin Companies Working with Government and Banks
Focusing on the themes that will lead to business opportunities, he has concerns about government regulation and how banks will interact with Bitcoin. One of his theories is that anonymous financial transfer systems will not be easily integrated into the current banking system. Know Your Customer concerns and regulations will be a significant hurdle, along with security for institutions with large holdings. When challenged on these points during Q&A, Mr. Lukasiewicz clarifies that he sees this as layers added on top of the current system, rather than a change to current Bitcoin protocols – apparently to the great relief of the audience.
In conclusion, he sees the best opportunities for those companies that firstly, concentrate on Bitcoin as a payments protocol, and secondly, have a strong focus on having a strong customer proposition and delivering an appealing experience.
Authored by Michael Smouha and Ronan Murphy, Contributors to On Bitcoin
[...] – Jaron Lukasiewicz, Coinsetter CEO at Inside Bitcoins NYC (via) [...]
[…] Bridgewalker has always been about exploring the idea of using “Bitcoin, the network” solely as a payment mechanism, but avoiding “Bitcoin, the currency” and its volatility by exchanging in and out of local currencies before and after the payment takes place. Using Bitcoin in this way, it then becomes a technical solution similiar to the ACH network or credit card networks, in that it provides a payment network which allows the electronic transfer of funds denominated in fiat (e.g. euro or dollar). But a payment network which has no barrier of entry, as anyone can plug in, as long as they speak the Bitcoin protocol. This concept has also been described as Bitcoin being “money over IP” or an “IP address for money”. […]