More

    Founder of Adamant Capital Compares Adoption of Bitcoin Similar to Petroleum in the 1800s

    Society has historically been a little slow to adopt progressive and innovative technology, which is being proven right now with Bitcoin and the whole cryptocurrency market. However, to put things in perspective, Turr Demeester compared the adoption to a recent innovation that happened 160 years ago with an innovation that everyone knows – petroleum.

    • Tamas Blummer and Turr Demeester spoke about the future path of Bitcoin.
    • Demeester compared the progress to that of the crude oil/petroleum transition of the 1860s.

    The entire blockchain of Bitcoin is based on a decentralized ledger, secured by the miners that support the network by validating via their system. The miners that validate the blocks are rewarded for their work with an allotment of bitcoins, which is what motivates the miners to continue their work. As the miners continue to engage on the network, the entire ledger remains secure.

    Still, the rewards given to the miners has an end, and this accrual of Bitcoin reduces over time. Once the reward is completely wiped out, would Bitcoin’s security be threatened? Realistically, the network is supposed to be setup in a way that this would not happen. Tamas Blummer, a developer for Bitcoin, commented on the issue on Twitter, saying that it would become “ridiculously expensive” to directly use the Bitcoin blockchain.

    Turr Demeester, the founder of Adamant Capital, also weighed in, bringing up a comparison with crude oil as a way of projecting where Bitcoin could go in the future. The original tweet was posted in 2017, but he retweeted it on May 29th.

    In a retweet of a post he made in March 2018, he noted that crude oil is rather scarce and that buyers were wary of using petroleum instead in the 1860s, much in the same way that investors are overly cautious about Bitcoin. To convince the public to make a switch, the benefits of petroleum had to be fully explained to move over.

    Over the course of two years, petroleum exports went from 40 barrels to 25 million barrels. As this popularity was in its infancy, the price of petroleum went through its own bout of volatility, because the market was only just being established. In London, the price of petroleum varied between 5 pence and 30 pence per gallon.

    Realistically, Demeester demonstrated the many “possible parallels” connecting Bitcoin and Petroleum. With years to even be considered a necessary part of the economy, they both came up against multiple issues in their infrastructure, and growth took quite a while. Still, once the two sectors experienced widespread popularity, there was not much time before adoption followed.

    In bringing up this example, Demeester hopefully brought a little solace to the rest of the Bitcoin proponents and the rest of investors that Bitcoin will not be losing the significance of the financial market. Ultimately, when the subsidy of the block slows down, Bitcoin will be more understood by the public, confirming itself as a valuable asset.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Avatar
    Krystle M
    Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,261FansLike
    2,728FollowersFollow
    4,098FollowersFollow

    Live Bitcoin Price & Latest BTC Chart News

    Today's Latest Crypto News

    Crypto Luddite Peter Schiff's Bitcoin FUD Shows Him Up As Wilfully Ignorant

    If you're someone who grew up in the swinging sixties trying to get to grips with contraptions like typewriters and cassette tapes, ogling bikini...

    BlockFi To Cut Rates For ‘Tier 1' BTC And ETH Lenders While Boosting ‘Tier 2' Starting Feb 1

    BlockFi announced changes in its Bitcoin (BTC) and Ethereum (ETH) lending yields starting Feb. 1. Changes follow the increasing price and interest in...

    MENA’s Unbanked to Drive Crypto Adoption While China’s 5G SIM Cards to Enable Digital Payments

    In MENA region, two-thirds of people unbanked but over half of the countries have 70% mobile subscriber penetration rate China Telecom working on...

    Are Mining Death Spiral Believers Holding Bitcoin's Price From Jumping?

    Bitcoin hash rate down at 118 Th/s from ATH of 126 Th/s hit on the day BTC price jumped to $9,000 A risk...

    Japanese Lawmakers Are Open to Issuing A Digital Yen To Compete With Libra, Digital Yuan

    A group of Japanese lawmakers from the ruling party came forward with the proposal of Japan issuing its own digital currency. It seems China’s determination...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.