Startups based on revolutionary technologies do not work within the frame of the existing system. Basically, this is the pith and marrow of the Bitcoin phenomenon.
If it works, we will be able to re-implement the entire financial system as a distributed model, in opposition to the centralized system. This all can be rearranged from scratch.
Bitcoin can definitely help us. It offers numerous advantages on the way to decentralization of the financial system for the means of commerce development. For example, you can make BTC payments in all countries except four promptly of starting to use it. Forget about traditional currencies and banking systems; it really is a versatile way to transfer values.
Besides that, Bitcoin gives us a great chance to radically reduce transactions costs. Currently, the commission fee on most regular non-Bitcoin purchases is 3%, and you have to pay up to 10% on remittances, which is more than just outrageous.
The common problem with creating new products or services in the frame of the current financial industry is that you will have to withstand tens of law pages and thousands of lobbyists. Bitcoin technology is so new and unorthodox it seems to have come from Mars, and this is the main reason why regulators are still unsure what to do with it. That’s very good. Finance technology entrepreneurs will tell you that if you are moving in the direction of innovation in the financial services industry, you want to do something so new and so different from the traditional things that the existing regulatory system won’t have any idea on how to react to it. That will be you Big Break Time.
We needed a new technology to be able to stir the market up and get the chance to rebuild the system. BTC gives us that chance, although Bitcoin phenomenon is a classical risk venture: it will either work or it won’t. In the latter case you will lose all your money. But if it really works, the results might be mind-blowing. Your investment into Bitcoin might pay off with 100,000% or 1,000,000% return, or with an out-of-limit return, because the markets we’re speaking about are really-really huge.