Tuesday, June 27, 2017

Google "Invests" in Bitcoin


marketslant |  Right now the BitCoin group is running into what we call "floor trader fear". The  voting members are chafing at the idea of scaling their supply by adding servers and/ or server power. This would disrupt their own little empires, not unlike the trading floor fearing Globex back in the day. And so many exchanges held out and protected the floor. And in the end they died. PHLX, AMEX, COMEX, PCOAST, CSCE, all gone or absorbed because they were late to adapt new technology and protect their liquidity pools. If Bitcoin removes power  from its voting members  control by demutualizing and uses those proceeds to increase server power they will likely excel. But Google and Amazon are now playing and they are all about unlimited  server power. Plus they have the eyeballs already. This is no unlike having the "marketmakers" already trading on a screen at Globex. The "liquidity pool" ofbuyers and sellers are already on  Amazon  and Google. Bitcoin does not have that past "early adaptors". Remember Palm?

When, not if, those behemoths are up and running they will immediately have an embedded network of both customers AND service providers  at their disposal in the form of search  eyeballs (google) and buyers (Amazon). They will be set up  to crush the opposition if they choose to create their own currency. Imagine Amazon  offering amazon money for amazon purchases. Now imagine them offering 20% discounts if you use  their money. The choices at this point boggle the mind. Tactical choices thought no longer used will come  into play again. Some examples: Freemium, Coupons, Customer Loyalty, Vertical Client Integration (P.O.S.), Travelers checks and more.
To be fair, Google has invested in Bitcoin as well. What smart trader would not hedge himself. But just like Netflix is Amazon's biggest cloud customer, but will eventually put Netflix out of business (after NetFlix kills Hollywood's distribution network); So will Google/ Amazon/ Apple attempt to obviate the need for any currency but their own. 

Blockchain is  the railroad. Amazon and Google have the oil. Like Rockefeller  before, The railroad will be made "exclusive" to their products.


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