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January 23, 2014

"Bitcoin 2.0", or, Misunderstanding the Role of Technical Innovation

Filed under: Uncategorized — @ 12:00 a.m.
"Bitcoin 2.0", or, Misunderstanding the Role of Technical Innovation

It's from Yahoo Voices:

Liquidity is a huge factor when it comes to the viability of a currency, so it will be interesting to see if the advanced features of Mastercoin allow it to overcome the liquidity advantage of Bitcoin.

Time and time again, you nerds fail to realize the true impact of technology on a situation. Actual cultural 'disruptions', as thou art fond of labeling them, come upon us once per generation of technical workers. The last was the Internet, and the next is computer as applied to money - aka Bitcoin.

Bitcoin has already won against the fiat regimes. No additional features are going to make another cryptocurrency even approach competition with Bitcoin - it has the market, it has the technical foundation, it has massive piles of capital deployed in the maintenance of the transaction processing network, and none of this will change.

Software people are always taking a good idea and polluting it with more features in hopes of driving user acquisitions or making the value-add more value-y. The world will continue to see these shitty 'decentralized platforms for trading stocks and shares in things', and those selfsame shitty platforms will continue to attract scams and bullshit artists by virtue of their lack of any credible gatekeepers.

The advanced features of Mastercoin and other cryptoderps are completely irrelevant. There is Bitcoin for the transfer of value, and for everything else there are titles to property respected by local jurisdictions.

They can't work for one simple reason: the title that one holds to a thing must be respected by the humans with big sticks on the ground near your actual physical object. Most countries have well-established title law and are going to be less than receptive to the notion that a particular satoshi represents some particular amount of gold as backed by some particular human.

More likely, they'll take the human to task for scamming you out of your money, rather than forcing them to cough up gold they in all likelihood never had on the books in the first place.

"Yahoo Voices is where your expertise and perspectives take center stage! Here you will find millions of articles, videos, and slideshows on every topic – published by Yahoo users, just like you."

Horrendous grammar. Unselectable copy. Much 90s. Welcome back, Yahoo.

User-generated content is rarely a good thing. It's a good thing when one harnesses users to generate data or scrape the web for one (see: Pinterest, Reddit) but the thinking man cannot expect sensible product from these venues.

Ah, I forgot. This is 'product', not writing. The goal is to accumulate eyeballs. Here's to getting out somewhere near the top of this particular internet bubble.

See: Apple, Microsoft, Oracle. Now, "Bitcoin programmers".

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