 "Not particularly optimistic about Bitcoin's future: Hal Varian")
Bitcoin may be gaining popularity but a senior official of Internet giant Google today said he was not "particularly optimistic" about the digital currency's future since it suffers from being the first in that space.
"It (bitcoin) is partly a medium of transaction, a medium of exchange," Google Chief Economist Hal Varian said. A concept that came into existence in 2009, bitcoin has become very popular of late with its exchange rate surging past $1,000 per unit in November from a little more than $200.
"I think something like this technology will take hold in the future but I am not particularly optimistic about bitcoin because it suffers from being the first in the area. “We have a saying in the US that you can always tell pioneers that they are the ones with errors in their bags," Varian said here.
Varian also gave examples of two start-ups which are disrupting traditional models through their innovation. While one of the start-ups Uber, which has also launched services in India, is redefining how people use the paid taxi service by making the entire process completely technology driven and along with setting new standards of service by constant computer monitoring.
The other example was of a service which allows people to rent out spare room in their houses through a mutual review mechanism which ensure some kind of verification of both the tenant as well as one subletting the facility.
Varian also said that there are hundreds of micro multinationals across the world which are basically very small companies with employees spread across the world. However, the advent of technology enables them to be connected and communicate in a way the smartest of multi-nationals can only afford to do. He added that Internet based transactions, personalization, communication along with new ways of business are altering the economic models of the world which may lead to a “brighter future.”
Meanwhile, in a set back to the emergence of bitcoins, China has directed its banks and other financial institutions not to deal in it. Besides, the United States has said that all prevailing money laundering laws would apply to bitcoins.
The Indian authorities might issue an advisory to warn against the potential risks associated with this new digital currency.
"It (bitcoin) is partly a medium of transaction, a medium of exchange," Google Chief Economist Hal Varian said. A concept that came into existence in 2009, bitcoin has become very popular of late with its exchange rate surging past $1,000 per unit in November from a little more than $200.
"I think something like this technology will take hold in the future but I am not particularly optimistic about bitcoin because it suffers from being the first in the area. “We have a saying in the US that you can always tell pioneers that they are the ones with errors in their bags," Varian said here.
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He was interacting with the audience after giving a talk on 'The Information Economy in an Internet Age: New Paradigms for Competitiveness and Economic Growth'. The event was organised by economic policy think tank ICRIER.
Varian also gave examples of two start-ups which are disrupting traditional models through their innovation. While one of the start-ups Uber, which has also launched services in India, is redefining how people use the paid taxi service by making the entire process completely technology driven and along with setting new standards of service by constant computer monitoring.
The other example was of a service which allows people to rent out spare room in their houses through a mutual review mechanism which ensure some kind of verification of both the tenant as well as one subletting the facility.
Varian also said that there are hundreds of micro multinationals across the world which are basically very small companies with employees spread across the world. However, the advent of technology enables them to be connected and communicate in a way the smartest of multi-nationals can only afford to do. He added that Internet based transactions, personalization, communication along with new ways of business are altering the economic models of the world which may lead to a “brighter future.”
Meanwhile, in a set back to the emergence of bitcoins, China has directed its banks and other financial institutions not to deal in it. Besides, the United States has said that all prevailing money laundering laws would apply to bitcoins.
The Indian authorities might issue an advisory to warn against the potential risks associated with this new digital currency.