I posted this on Reddit.Price volatility has prevented widespread adoption.
There are two kinds of people who use Bitcoin: people who use it and people who speculate on its future value. The former group wants stability so they can hold it and transact in it. The latter group wants volatility so they can make money off it. These two groups cannot coexist in the Bitcoin ecosystem. Other altcoins have solved this problem with market pegged assets. BitUSD and NuBits are two such examples.Bitcoin has become a tribal religion.
Being a bitcoiner is starting to feel like being a New York Yankees fan. It's like we're a sports team playing against other teams. After people put money on their "team", their mind becomes closed to everything going on around them. Nobody seems to understand the major innovation Bitcoin introduced was the idea of a distributed ledger and that idea is still thriving in extremely innovative new ways if you would just take the time to do some research.Altcoins are no longer all clones of Bitcoin.
It was once true to say altcoins were basically clones of Bitcoin / pump and dump scams. In 2014, this is no longer true. I'm not here to push any particular alternative blockchain tech down your throat but I DO want to encourage you to start doing research if you've been out of the loop for awhile.Proof of Work is not a good consensus algorithm.
Last year, Bitcoin spent $600,000,000 buying security for itself via Proof of Work mining. There are other ways to secure a blockchain. Delegated Proof of Stake uses the blockchain to let token holders vote on who "mines" (called delegates). I'm sure many other alternative consensus algorithms are in the works. A blockchain does not require Proof of Work.Blockchains are analogous to websites.
There isn't going to be one chain that dominates the world in the same way there is one Internet. Blockchains are the new websites (HTML). There will be millions of them coexisting. Each of them just as secure as the rest. For a website to have value, it has to have users and generate revenue. Blockchains are no different.The bubble will happen in an altcoin.
The bubble everyone is waiting for will happen in an alternative crypto, not Bitcoin. I'm not going to say what one I'm personally investing in but I will encourage you to take a look at the altcoins introduced in 2014 and draw your own conclusions. At the very least, I can guarantee you the knee jerk objections you have to altcoins are no longer true.