“The bitcoin revolution isn’t coming. Here’s why” – The South China Morning Post | $15,126.31

Last updated on January 11th, 2018 at 02:04 am

Unlike my tech-loving friends, who are fervently convinced that a cryptocurrency revolution is upon us, I waver between unease and unconcern. Unease because of a random fear that hackers may descend on my laptop, kidnap it, and demand I pay them in bitcoin that I have not the first idea how to buy or deliver. Unconcern, because I still cannot convince myself that this revolution is anywhere in sight.

But bitcoin and the like have the feel to me of beta-versions of the Model T Ford in the early days of motor cars. Fine for proof of concept, but too problem-laden to be useful to most of humanity.

Advocates of blockchain are right to claim that the platform they have constructed is for all practical purposes unhackable. But they overlook the fact that the apps currently operating on the platform can be hacked.

Bitcoin can only manage seven transactions a second (though this apparently involves around 10 million trillion calculations).

Taking bitcoin alone, its “mining farms” consume more electricity than eBay, Facebook and Google combined… In trying to eliminate the anonymous power of banks, our cryptocurrency wonks seem to have created huge anonymous power in their “mining farms”. Instead of eliminating the concentration of power, they are simply shifting it.

I would go further: Bitcoin’s price is not the only aspect of the blockchain revolution that is unsustainable.

Eulogy made by David Dodwell

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2 Comments on "“The bitcoin revolution isn’t coming. Here’s why” – The South China Morning Post | $15,126.31"

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Alps
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Alps

“But bitcoin and the like have the feel to me of beta-versions of the Model T Ford in the early days of motor cars. Fine for proof of concept, but too problem-laden to be useful to most of humanity.”

That’s exactly what bitcoin is like. And guess what, it ended up revolutionizing daily life in the long run. How this is a point against bitcoin I have no idea.

Cryptogineer
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Cryptogineer

Hmm, Yeah, looks like your lack of understanding how the system works is limiting your perception.

Blockchain is but one component of a system that solves the age old (at least since computers became far more available) problem of Trust within a distributed compute network.

Perhaps you should investigate it further like your ‘tech loving’ friends. Andreas has a great book titled the Internet of Money that would probably be a decent place for someone non technical to start getting more substantial information. Sadly, as of now you just sound like every ill advised participant that is trapped in legacy economic models.