Food for Bitcoins: how to live a week on cryptocurrency

American Forbes for the second year in a row trying to get through the week without the traditional money only for Bitcoins. How could she do it?

In Russia, Bitcoins are prohibited - they can not buy coffee at a restaurant or pay for purchases in the store. In the US, it's different. American Forbes reporter Kashmir Hill for the second consecutive year, to experiment - to live a week for Bitcoins. No cards, no "of cash" just Bitcoin. The main goal of the experiment was to find out was whether during that time it is easier to live a week for one cryptocurrency. Hill estimated the changes of the year At the end of the experiment.

1. This year, the Bitcoin life has become easier than in the past. Last year I spent a week, paying only Bitcoins, and wrote about his experiences. After that, I was constantly asked was whether it is easier to live on Bitcoins this year. I'm sick of answering "I think so." And I repeated the experience. Now I know that the answer is overwhelmingly positive. Last year, I had to constantly ride a bicycle or do not walk, I lost more than two kilos, out of the house and constantly felt crazy, asking sellers, whether they accept the fictional currency, which has never been heard. This year, for example, I ate a meal of 17 dishes and gone to a wine tour in Santa Cruz. More and more people learn about Bitcoin, and more and more merchants accept cryptocurrency. The most important thing for me - is that payment intermediaries such as Gyft and Foodler, take cryptocurrency that gives me access to their partner's services - shops and restaurants. By Bitcoin will be treated more sellers.

2. Bitcoin penetrated the public consciousness. Currency definitely captured the attention of the media. She dedicated blog BitBeat in the Wall Street Journal. Bitcoin has terminals for traders Bloomberg and Bloomberg by BusinessWeek magazine even put him on the cover. Newsweek also gave cryptocurrency his cover when he tried to tear the mask from its mysterious creator Satoshi Nakamoto. In Bitcoin has its own magazine, created by his supporters, and its own news service, launched investor Shaquille Khan. In Google increased the number of searches, especially when the value of the currency jumped - the highest price was in December 2013 when Bitcoin broke the mark of $ 1,000. Four years ago Bitcoin was worth only a few cents. According to a recent survey by The Street and the GfK, 75% of people still do not know what is Bitcoin, and 80% do not intend to use it. Based on personal observations in the Bay area of ​​San Francisco, I would say that 75% of people have heard about it, although most relate to the use of this currency skeptical

3. The attitude. I used to feel crazy when asked sellers, can I pay the fictional virtual currency. But now that Bitcoin has become better known, I just feel eccentric pokupatelem.4. Many have heard of Bitcoin, but still do not understand how it works. During the communication with the drivers, vendors, strippers, cashiers at the cafe, I found that many people know about Bitcoin, but do not understand how it works (and want to). "This is a giant network, supported by the people who run the Bitcoin client on their computers all over the world, coding and we decrypt messages about transactions, - explained to me. - In exchange, they receive a "percentage for Mining" in Bitcoins at a regular, but eventually decreasing rate. " In fact, it is the online equivalent of sending cash by mail: you can send money without any information about yourself, but you can not cancel the transaction.

5. Mechanics Bitcoin is much more complicated than many try to portray. Proponents of the system focus on particular values ​​Bitcoin - when transferring payment no deductions, because the transaction is made Bitcoin network, rather than a bank or broker, card issuer. In fact, the system itself is the mediator and the process involves a lot of people who spend significant money on energy, which supplies the computers that support the operation of the system. Currently, "miners" who employ their computers are paid for their work with new Bitcoins - they appear at regular intervals. Already it has created more than 12 million Bitcoins from a total number of 21 million - an amount cryptocurrency is expected in the next century. In addition, they list themselves very small "percentage of mining", set designers Bitcoin. Currently, he is 0.0001 Bitcoins, or 4 cents. "Miner" push your request to the top of the queue, and the process of its passage takes a long time (which is apparently what happened to me when I was not able to buy lunch in the Buyer's Best Friends, because the Bitcoin network took 67 minutes to confirm the payment). The size of the "percent for mining," of course, will grow, according to the Economist.

6. There are people who run the Bitcoin network and decide how the whole system works. Although we often talk about Bitcoin as a faceless automated network, there are programmers who develop software for the currency and make changes to the code. Network "miners' lives due to these changes. It is not legitimate, as the US Federal Reserve, but some kind of governance structure is still there. One of the leading developers of Bitcoin is Gavin Andresen - not to be confused with Mark Andriessen, financier, which pours millions into startups related to Bitcoin. Gavin Andresen also part of the fund Bitcoin Foundation - an organization that financially supports and promotes Bitcoins. She received about 6,000 Bitcoin as a donation (which is about $ 3 million at current exchange rates).

7. Ordinary people are late to the "gold rush" Bitcoins. At the dawn of Bitcoins that you can download to a computer program, go to sleep and wake up in the morning the proud owner of 50 brand new Bitcoin (while costing less than a dollar, and now - $ 22,000). Now this is not as easy as it found 16-year-old "miner" Peter Anderson, whom I met in Silicon Valley. He spent about $ 1,000 on a computer for mining and electricity costs. Extracted with 0.38 Bitcoins, or $ 200. Now for the processing of cryptographic algorithms need more powerful system, and demand immediately gave rise to a proposal: many companies began offering computers for mining. And along with this there was also a lot of problems, lawsuits and complaints to the US Federal Trade Commission against those who tried to buy the machines.

8. When Bitcoin system, things go wrong, it is not clear who to contact. Bitcoin wonderful property is that it is a non-governmental, decentralized currency. When something goes wrong, a terrible Bitcoin property that is a non-governmental, decentralized currency. Ask those who have savings in Bitcoins stored on Mt.Gox Exchange. "Everything is new, that shines and falls into the headlines, tends to spoil people who want to steal it. Currencies new and old crooks "- says Laurie Shock, director of one of the departments with the Securities and Exchange Commission. "The complexity of the return of stolen assets is underestimated by many investors, who are faced with virtual currency."

9. For all its complexity Bitcoin incredibly easy way to instantly open a bank account. Create a place to store cryptocurrency easier than to have a postal address. And it is incredibly easy to use. This is a major innovation and a cause of admiration for Bitcoins. The process is equally easy for anyone with a computer or smart phone and access to the Internet - whether you're a resident of the country with unreliable banking system or a teenager. As in the case of cash, Bitcoins do not care who you are. "I was very pleased with the appearance of Bitcoins is because, as a teenager, I find it difficult to make purchases over the Internet - I do not have a credit card yet - such a comment came to my text. - I thought, and still think, that Bitcoin could fill this gap. "

10. Vera smells like cappuccino of Coupa Cafe. Last year, I said, "I believe in Bitcoin without looking back, only when I can buy them a cup of coffee." This year I got her a cup of coffee, though I had to drive 30 miles for this. Live on Bitcoin - it means to visit places and sites that you would not normally visit.

11. The use of Bitcoin in the real world is not the essence of Bitcoin. My experiment - it's fun. A good way to feel the currency and to meet the people associated with it. But he did not disclose the essence of innovation Bitcoins. He's just more convenient - just like any other virtual currency - payment method. Bitcoin make micropayments possible - you can, in theory, to send someone 85 cents for their favorite "tweet", or 10 cents then, to read the article on the web without ads. This greatly simplifies the payment of funds to a stranger without having to exchange personal information. When you make payments, you do not have to mention your name, address, phone number, mailing address, and so on in order to prevent fraud. Because you can only spend Bitcoins that you have on hand, as in the case of cash.

12. If you live in the Bitcoins in the real world, you need to think a few steps ahead. Otherwise, you may be parked without the hypermarket petrol and refuel will be nowhere.

13. If the seller accepts Bitcoin services, it is very good for advertising, but does not necessarily become its real business. I found Santa Cruz Experience - a company that provides wine tours. It is often mentioned in various articles on the travel industry as one of the few who take Bitcoins. She does it for a year, but I was the first one who really paid for cryptocurrency tour.

14. Bitcoins can keep the entire business without needing a bank account. In Blockchain.info would laugh at my attempt to get through the week exclusively on Bitcoin. They are using Bitcoins are all business: in the state have 16 people on four continents.

15. Most of those who accept Bitcoins, immediately transfer them into cash. Winnie Linghem Gyft the company believes that this factor reduces the value of Bitcoins: the market are more sellers than buyers.

16. For the early adopters of Bitcoins is intolerable that this cryptocurrency become mainstream. They are happy, of course, that they managed to make a fortune, recognizing the potential of Bitcoin, but they disgusted attempt Currency regulation, attempts to transform the Bitcoin ecosystem in conventional financial ecosystem with the same banks that will take a percentage of the transaction.

17. In this year increased the number of places where you can spend a Bitcoin and its value grew. In 2013, during the "Week on Bitcoin" I spent about 5 Bitcoins, which cost about $ 600. Now I spent a week 3.8 Bitcoins, which cost $ 1,600.

18. Bitcoin - a world currency. When I went to a strip club, where she could pay Bitcoin, the dancer told me that she used to pay and the Japanese yen, and the Pakistani currency. And sometimes she had no idea how many in her arms until they looked into the exchanger. Pakistani not even worth exchanging for dollars. With Bitcoin you have a universal currency that can make the trip easier ... unless it will take more operators.

19. Bitcoin still scares many governments. Legitimacy Bitcoins around the world still has not been approved. Part of why Apple will not allow applications to cryptocurrency processing in your store App Store. China is trying his best to oust the country's borders for Bitcoin, closing and restricting business operators that change in the Chinese currency Bitcoin. It is the largest non-state test on the viability of the currency. US uses a different approach, surrounding Bitcoin regulation and taxes in an attempt to strangle the currency in the soft embrace of the government.

20. A new week on the Bitcoin did not come out so entertaining as last year. This year, I have met far more entrepreneurs whose Bitcoin startups skyrocketed, and attracted millions of investment. For example, Bitpay announced it has received $ 30 million investment by the company of Richard Branson of Virgin, Yahoo founder Jerry Yang and Asia's richest man Li Ka-bus, which apparently does not believe that China will be able to stifle Bitcoin. But the current "bitkoinery" not as quirky as the first - one of them, for example, told me that trades currency based on the location of the planets. Building a business on the Bitcoin is not so fun and unusual; people are serious and include, because you can make or lose a lot of money.

21. continues to fight for the preservation of the anonymity of Bitcoin. Initially, it was the anonymity has led to the use of Bitcoins on the "gray" market areas, where to sell illegal goods. Now, there are those who try to fight it; and there are those who want to Bitcoin remained "a means for transactions on the black market." At the moment, it seems to be losing supporters of anonymity, but they have to develop many projects.