Some people who followed me know that I spent some thoughts on use of Bitcoin as money, i.e. a medium of exchange, as opposed to only store of value (which usually comes before MoE). While I would love to see more merchant adoption, some nuance is necessary in what kind of merchant I want to see adopting it. I do not care so much about whether my next door cafe sells me a latte for Bitcoin (which will come, when his hand is forced, whether he is a Bitcoiner or not).
As always, it is the critical mass and network problem. Merchants will have to pay their taxes, labours, suppliers and rent in Fiat, hence accepting Bitcoin just adds a layer of complexity, which I sort of have to agree with. And that is why, to see positive signs of adoption, you have to look at the top of the food-chain.
Which is why, just today I chanced upon this (already a quarter old) news of Christie's settling luxury real estate transactions on Bitcoin that gave me some small joy, as another step in the right direction.
No, I cannot afford any of Christie's listings in a few lifetimes, but it is still more important than my next door ice-cream seller accepting lightning for a Gelato. It is not the symbolism that is valuable here, but it shows that those who sell to the top of the food chain (think of multi-floor penthouse overlooking Central Park, Manhattan, or a townhouse in London) are accepting Bitcoin as a medium of settlement as good as whatever alternative medium they use (bank transfer or something)?
Know the examples of Zimbabwe, Venezuela, Argentina? As their economies got dollarised, it did not start from the moron selling banana on the street, but from the elites moving their wealth outside local currency/banking system. Yes, Bitcoin as a revolution has a grass-root ethos to it, but the network effect? That starts from the top, those with real capital and warchest starting to put their faith in Bitcoin as the superior money.
So now that Christie accepts Bitcoin for its real estate, it is just a step towards preferring Bitcoin (over Fiat) for its deals, once they see the advantage, and the competitive pressure will force others too.
If I had $50 million to drop for a house, and someone gave me the choice to pay (or receive) this
- over the Swift network
- the Bitcoin network (layer zero)
I would choose the later, every single day. And Christie will recognise it too, soon enough.