I’ve been non-casually observing the cryptocurrency ecosystem since 2010. At some point along the way, I began to see patterns emerge again and again. Some are utterly hilarious, but all are interesting. But, like the 5 stages of grief, the progression is always the same. The following are my observations:
Stage 0: Bitcoin (cryptocurrencies) is/are just a scam
This is actually a very necessary stage for someone to go through. As my friend, Michael B. Casey says: there might be something very wrong with you if you don’t question that this whole thing is a scam. I mean, without knowing…
“Democracy is two wolves and a lamb voting on what to have for lunch.” -Ben Franklin
Democracy tends to work better as the number of people participating decreases, but it is fundamentally flawed. But if we are going to cooperate as a species given the set of all possible conflicts, it is a reasonable solution. Even further, it is the solution forced upon us by our betters. In most people’s minds, Democracy is the machinery of our Republic. Certainly, a romantic idea at best and a filthy lie at worst.
I used to think that voting was just for show…
The original purpose of banks was to safeguard their depositors’ assets. Plain and simple. This was a “Free Banking System”. A simple contract between 2 parties, the depositor and the bank. In my last debate regarding the Lightning Network, I asserted the best comparison with what’s going on now in Bitcoin is the transition from a free banking system to one where the bank starts to add more “financial services” on top of the original relationship. I got some push back on this comparison. So, I will expand on why this comparison is very important.
Some time has passed between the failure of Segwit2x in the summer and autumn of 2017 and the time that I am writing this. I thought that waiting to detail these events was a good idea so that I could get some space and let things fall into proper order in my head. I did not want to be overly emotional in my retrospective.
Recently, I was asked what I thought of a particular “blockchain” training course. I appreciate being asked this question because I am still learning this very thing myself. I also appreciate being asked this question during “the crypto winter”. Time spent advising people who ask when times are tough is highly productive. Such people are clearly one step ahead of others that respond only to what is fashionable at the moment. Learning to parlay your software engineering skills to the world of cryptocurrency development is a sizable investment.
Let’s talk about what we are really talking about; how to profit…
In another Medium article, I laid out my case for why the Lightning Network (LN) (or any second tier network) is bad for the future of Bitcoin. In this article, I dive a bit deeper on why becoming a LN user is a bad idea given you are no longer able to use the Bitcoin main chain.
I going to assume your are tangentially familiar with Bitcoin and second tier networks that are being built to be clients of the Bitcoin main chain. No technical knowledge is required.
Let’s fast-forward a few years and assume that a second tier network…
The Lightning Network will not be good for the future of Bitcoin, all things considered.
This article is written in preparation for a debate. …