Apple announced the Apple Pay product yesterday. It will be streamlining the payment mechanism that the everyday consumer uses. Consumers simply take a picture of their credit card with their iPhone and it gets added to the PassBook app on IOS after it is verified. The information is not stored on the phone. The phone also creates a new number every time you use the card to add another layer of security. This is stored in what Apple calls the secure element. The TouchID fingerprint scanner makes sure that only you are the only one with the ability to use this payment feature. CNET described this Apple Pay product as similar to Google Wallet.
While Tim Cook was giddy on stage, this really isn’t more than a glimpse of how the payment process will be revolutionized in the future. It isn’t much of an innovation to use your phone to pay for products that you buy. The true innovation is Bitcoin because it will revolutionize the way money changes hands. Bitcoin is an entirely new currency and a payment system. Bitcoin is what will eliminate the pesky credit cards that are unsafe and have high fees. Apple Pay simply masks the use of credit cards.
If you are unsure of what Bitcoin is I’ll try to briefly explain it to you. Bitcoin is a digital currency that allows users to avoid having a third-party be a part of transaction between two entities. The chain of code represents the value. It is the ultimate form of security because it is completely anonymous. All of the payments that have ever been recorded in the history of Bitcoin are recorded on the block chain, so the transaction is incredibly transparent. The fees are much lower than credit cards. The biggest benefit that Bitcoin offers is the ability to stop relying on the Federal Government for sound money. Right now the Federal Reserve has complete access to do whatever it wants with our currency. The Fed is printing money to finance the budget deficits that the U.S. Government runs every year and this hurts the value of the dollar. Since Bitcoins cannot be printed and the entire system is decentralized, it allows you to protect yourself from out of control government spending.
Bitcoin is the technology that will change the way money is used. We will look back at Apple Pay and laugh at it ten years from now as Bitcoin will be used by everyone. Bitcoin is the internet of money. Fiat currency is obsolete and must be gotten rid of like the way we stopped using telegrams to send messages. If you think this is far-fetched than I’ll list out some of the companies that are accepting Bitcoin for you. They are the following: Dell, Tiger Direct, Dish Network, Overstock.com, and Zynga. The biggest story that has hit Bitcoin recently is that the currency is going to be accepted by Paypal on its Braintree payments platform. These companies are bringing respect to the cryptocurrency. It will be what changes the world, not Apple Pay.
Follow me on seekingalpha for my stock market analysis: https://seekingalpha.com/author/alex-pitti