27 Nov '13

Self-Driving Cars May One Day Use The Bitcoin Network


Consider a future scenario where autonomous driving vehicles, such as the project Google is currently working on, are wide spread and common. Every family has one, or at least, hires one on a regular basis.

In this future scenario, the network that administers these vehicles accepts payment in bitcoin. Each vehicle only charges the occupant based on distance and time travelled, much like taxi cab’s do today.

If you are in a hurry, you can request that the vehicle pay an additional fee to the network so that you can arrive at your destination quicker. The network may ensure traffic signals are green for the entire duration of your trip and other vehicles in the network may allow you to pass them by or push in front them.

The occupants of those other vehicles may have accepted at the beginning of their trip to allow other to pass by, and they would receive a commission for allowing it. That commission is paid in bitcoin and credited to their taxi account, if you want to call it that.

The car industry is enormous. According to Yahoo Finance, the auto manufacturing industry is valued at $2 quadrillion and is the biggest industry sector on the list.

In our future scenario, bitcoin is an integral part of the network that cars rely upon to communicate with each other and negotiate their position and speed on the road.

If say that the minimum payment required in these negotiations between vehicles is equal to the minimum divisible value of a bitcoin, then each transaction would be 1 satoshi, or 1/100 millionth of a bitcoin.

Considering the sheer number of negotiations that would take place across the world on a daily basis, would it be outrageous to consider 1 satoshi to be equivalent to 1 cent?

If that becomes a reality, 1 bitcoin would be valued at $1 million.

… and that valuation would only be from the application within one industry. Not to mention the multitude of other industries that bitcoin is poised to disrupt on a global scale.