Bitcoin: Threat to the US Dollar?

Recently I wrote about how peer-to-peer internet currency Bitcoin could emerge as a long-term threat to mobile banking and money transfer services. Since then I found this article in Time magazine which asks if Bitcoin might eventually rival the US Dollar and other government-backed currencies! The arguments are intriguing, though far from conclusive. Howver, it is worth taking a look at some of the well-informed comments from Time readers. There are people with both the tech saavy and the economic nous to see the benefits of such an independent P2P currency – and why it is a threat to various business models, including some of those being touted by telcos. For example:

Bitcoin shines in its ability to enable low cost peer to peer transfers of value with the delivery certainty of a wire transfer, yet being free of the chargeback risks presented by credit cards and Paypal.


Continuing the trend of an internet-based economy we are seeming to lean towards, well, I think it’s plausible to think that BitCoin may offer nice competition for not only USD, but many different currencies. However, diversity is great!

They say that the best kind of advertising is a personal recommendation from a friend. If these comments represent a large enough group of genuine advocates, then Bitcoin really could become a serious rival to other kinds of money transfer… thanks to the pervasiveness of the internet.

Eric Priezkalns
Eric Priezkalns
Eric is the Editor of Commsrisk. Look here for more about the history of Commsrisk and the role played by Eric.

Eric is also the Chief Executive of the Risk & Assurance Group (RAG), a global association of professionals working in risk management and business assurance for communications providers.

Previously Eric was Director of Risk Management for Qatar Telecom and he has worked with Cable & Wireless, T‑Mobile, Sky, Worldcom and other telcos. He was lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He is a qualified chartered accountant, with degrees in information systems, and in mathematics and philosophy.