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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