The most controversial theme of Bitcoin 2.0 has been the rise of the ‘blockchain not bitcoin’ meme. The purists are offended and dismissive, the proponents resolute and over the last few days there has been a fair amount of heated discussion around the topic. Today’s update begins on the theme:
One proponent is Preston Byrne of Eris Industries who argues that anyone can create their own blockchain and a native token is unnecessary. He says that from a commercial standpoint using a blockchain as a data structure is enough. Preston makes reference to Tim Swanson’s (known Bitcoin ‘skeptic’) paper doing the rounds. Tim’s point is that institutions or companies can just pick out the best bits from Bitcoin and move on. American Banker also wrote about the ‘cherry picking’.
Andreas recently had a lengthy Twitter debate with Byrne. The purists all say that without a native token to secure & incentivise the blockchain there is no decentralisation, no trustless transfer. That is pretty much my take as well; without the decentralised distributed ledger you need to place trust in a Third Party.
One company that may not be spouting the bankster line in regards to the blockchain is Microsoft. They’ve applied for money transmission licenses in all US states. Do they plan on going head to head with ApplePay as a payments platform or is this part of the long term strategy they mentioned when they began accepting bitcoin? Certainly seems like a forward thinking move…
Bitcoin itself is of course a forward thinking technology, but the Bitcoin Foundation certainly didn’t plan ahead effectively. The accusations have been flying and BitJourno of the year, TwoBitIdiot, has penned a piece calling for the dismantling of the BCF, which he believes he should have pushed ahead with last year
So it would be fair to say that the crypto industry is going through some changes. It’s political and many purely see a profit motive. Not altogether unlike every other industry on earth – but does it need to be this way? BraveTheWorld’s scathing video ‘Bitcoin Is Not A Honey Badger’ doesn’t hold back and it makes healthy, sobering viewing
Overstock.com continues to push Bitcoin’s barrow. Their Director of Communications reckons Bitcoin only sales & discounts are coming soon
Mining manufacturer BitMine AG is facing multiple lawsuits from customers
Speaking of Bitcoin and crime (then adding the fact that prohibition doesn’t work), here’s Info Wars discussing the discrepancies of the Silk Road trial with Ross’s mother, Lynn.
But back to the nuts and bolts. It is very difficult almost everybody to understand, but here’s a short vid on Bitcoin’s Cryptographic Hash Function
Jamie Dimon has spoken of the next financial crisis in his letter to shareholders. He points out that investors generally behave in the same ways in times of turmoil; one wonders if Bitcoin will be an asset institutions and individuals alike flock to in the search for safety accelerated by any crisis.