Although the “powers that be” would like to say it’s only a fleeting concept, the bitcoin has certainly arrived.
It was typically thought that gold and silver would be the alternative to fiat currency, as historically has always been the case. Unfortunately, most merchants aren’t equipped to give you change for a purchase made with a gold or silver coin. Thus, the precious metals, much to the chagrin of gold and silver bulls, have been relegated to existing as just another asset class, while suffering the ups and downs like all other asset classes. However, the notion that gold and silver are mere asset classes didn’t mitigate the overwhelming desire to operate, deal, and even trade in the realm of another currency. For years, barter has filled that need, wherein goods and services are traded for barter dollars and controlled by central command centers, yet they still rely on an ultimate piece of paper in order to prove ownership. Therefore, it wasn’t surprising given the devaluation of currencies worldwide, that sooner or later a virtual currency would make its way to the mainstream, namely the bitcoin.
For any innovative currency idea to become widely accepted, it must first be recognized by an existing influential merchant. Over the past few years, governments from Washington, D.C. to Beijing have examined, dismissed, and even commented on the bitcoin, all relative to whether the bitcoin would be accepted or not. However, all this governmental discussion pales in comparison to the most recent decision made by the NBA’s Sacramento Kings. From game tickets to hot dogs and from game jerseys to cold beer, by using a smartphone at the arena or by accessing the King’s website, bitcoins processed by Bitpay could certainly play a vital role in the future financial success of the Sacramento Kings. Moreover, team owner Vivek Ranadivé has referred to the bitcoin evolution as, “Being a curiosity to becoming a legitimate form of doing commerce.”
If the Kings are indeed successful with their bitcoin endeavor, it’s not difficult to surmise that other NBA teams will soon follow suit. And how long before every minor league and major league professional sports franchise, from football to hockey, join in the bitcoin craze? Just like the reality of the business world, professional sports franchises can be considered to be lemmings — if an idea is successful, everyone will copy it. Just think of all the businesses that are ancillary to sports and you’ll quickly understand that the Sacramento King’s decision is a real “game changer.”
I can just imagine the Peyton Manning television commercial, “That’s right, Bob, it was simple. I established my Bitpay account and I no longer need to worry about a shrinking currency, and just look what I was able to purchase, it’s an official Tom Brady jersey, golly gee.”