I agree with everything in this post.
Bitcoin *isn’t* the TCP/IP of money. TCP/IP is the TCP/IP of money.
Bitcoin is a software application (or if you’re getting technical about it, a “distributed application” or “DApp”). Bitcoin is too high up conceptually to serve this function – two or three layers of abstraction – from the blockchain as a database technology.
You heard that right: blockchains aren’t about money. They’re about data. Money is one form of data, representing information the market leverages to make economic calculation – per Carl Menger, “the various computations that must be made if a production process is to be efficient.”
The currency/tokens/payments applications are too high up in the conceptual stack to be even remotely useful in the long-term. In my personal view, it’s a big distraction from the real potential of distributed computing technology. Start at the bottom of the stack – start with data, and then gradually work your way up to money and value. That’s when you know you’ve got the problem cracked.
“Strange days have found us
Strange days have tracked us down
They’re going to destroy
Our casual joys
We shall go on playing
Or find a new town”
Strange Days Stories:
- # 1 Ethereum raised about $15m using crowdfunding, without Angels or VCs in a matter of weeks before they had built a product (ie the real Seed stage).
- # 2 Blockstream has $21m of VC funding and the VCs have to at least proclaim that they don’t expect economic returns.
Then there is Ripple. Nobody has declared Ripple dead, but it’s founder has left saying he got it wrong. OK, so that is failed Bitcoin bet, nothing new there. Actually the funding history does look strange. There were two rounds billed as Angel, but all the investors are institutions. Then after two Angel rounds, there is a Seed round. I now officially declare:
“the names given to…
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