19. On the Purpose For Which Bitcoin Could Be Used First
Last updated
Last updated
FROM THIS READING, we can extrapolate that Satoshi Nakamoto did not expect Bitcoin to achieve such huge success so rapidly. He states that the first use might be for micropayments or a porn site. Interestingly, those were not the first actual uses. Satoshi also makes the suggestion that famous people could use it so that fans could send them personal messages.
He also observes, “It might make sense just to get some in case it catches on.” I’m assuming he followed his own advice. A bitcoin was worth over $600 in early 2014 compared to pennies in its first year of existence.
Satoshi Nakamoto Sat, 17 Jan 2009 06:58:440800
Dustin D. Trammell wrote:
Satoshi Nakamoto wrote: You know, I think there were a lot more people interested in the 90’s, but after more than a decade of failed Trusted Third Party based systems (Digicash, etc), they see it as a lost cause. I hope they can make the distinction that this is the first time I know of that we’re trying a non-trust-based system.
Yea, that was the primary feature that caught my eye. The real trick will be to get people to actually value the BitCoins so that they become currency.
I would be surprised if 10 years from now we’re not using electronic currency in some way, now that we know a way to do it that won’t inevitably get dumbed down when the trusted third party gets cold feet.
It could get started in a narrow niche like reward points, donation tokens, currency for a game or micropayments for adult sites. Initially it can be used in proof-of-work applications for services that could almost be free but not quite.
It can already be used for pay-to-send e-mail. The send dialog is resizeable and you can enter as long of a message as you like. It’s sent directly when it connects. The recipient doubleclicks on the transaction to see the full message. If someone famous is getting more e-mail than they can read, but would still like to have a way for fans to contact them, they could set up Bitcoin and give out the IP address on their website. “Send X bitcoins to my priority hotline at this IP and I’ll read the message personally.”
Subscription sites that need some extra proof-of-work for their free trial so it doesn’t cannibalize subscriptions could charge bitcoins for the trial.
It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self fulfilling prophecy. Once it gets bootstrapped, there are so manyapplications if you could effortlessly pay a few cents to a website as easily as dropping coins in a vending machine.
Satoshi Nakamoto
This subject was revisited on the BitcoinTalk forum later:
Re: Porn
Posted by satoshi, September 23, 2010, 05:56:55 PM
Bitcoin would be convenient for people who don’t have a credit card or don’t want to use the cards they have, either don’t wantthe spouse to see it on the bill or don’t trust giving their number to“porn guys”, or afraid of recurring billing.