Tuesday, August 20, 2013

The system is broken: Part 2

I went out to dinner last night with my family and some friends.   It came time to split the bill and we started doing the normal thing.

Step 1) Waiter puts down bill
Step 2) Slowly, each group picks up bill and everybody adds their tally.  Nobody has cash.
Step 3) Each party tells the waiter what amount goes on what card, waiter has to remember.
Step 3a) If your collecting cash, the cash ends up short, and the person holding the cash gets to add more cash out of his pocket.
Step 4) The waiter then goes and runs 3 credit cards, each for different amounts, then retuns a pile of cards/paper to the table for everybody to sign.

It ends up being a logistical nightmare, especially if a waiter refuses to separate a ticket.  Its just so silly.  People don't think of it as silly because its "business as usual".  But when you step back... its pretty stupid.

Bitcoin has two solutions here.

A) a QR code of a private key is printed on the receipt.   Each party pays the amount owed to the receipt.  The waiter then confirms everything is good everybody goes home.

B) A QR code is printed next to each menu item, and to order an item you simply pay the QR code on the menu.    Who needs the waiter?   You food just comes to you via robots (or something)
  Each menu would need its own set of addresses, so that the chef knew where the food was to be delivered, but seriously, isn't this the best idea ever?

I've said it before and I'll say it again.   Value = Rarity x Utility.   Bitcoin is rare(only 21 million ever).  Bitcoin's utility is only limited by the imagination of its users.   Bitcoins value is potentially unlimited.

Unlike the US dollar.   Its utility has maximized as a fiat currency, and its rarity is declining because 85 billion a month is printed.   The utility of a paper currency hasn't changed since the day it was invented, but its rarity is declining.

The only way to make a dollar more useful is to lace it with cocain so people could get high off of it.


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