I have More Faith In Blockchain Technology

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I Have More Faith In Blockchain Technology

“The code of life is written into an organism at its inception. Satoshi carefully architected Bitcoin’s DNA, or genetic code, to be the best sound money ever created.”-Dan Held

Introduction

The following article is phase 3 from my original piece titled, Phase Transitions Of My Friend Moe ‘The Bitcoin Hater.’

You can read the full article here:

Phase Transitions Of My Friend Moe ‘The Bitcoin Hater.’

In the article, I walk the reader through 5 phases a regular person goes through to understand Bitcoin and eventually buy into the asset. At the end, I offer a roadmap for continued education.

The 5 phases on a high level

Transitions happen based on education levels

I have received a lot of feedback from the article about it being too long. In light of this, I am going to break down each phase 1 by 1 in their own separate article.

For the sake of clarity and for new readers, I used a fictional character named ‘Moe’ to represent all the Bitcoin haters out there.

So when you see the name Moe, I am referring to all the people that have debated me, argued with me, and eventually, sought to learn more so they could invest.

Meet Moe, The Bitcoin Hater.

Moe comes in all shapes and sizes and from different family backgrounds. I talk to Moe’s all the time and they all have gone through this phase against Bitcoin.

Phase 3

The third phase turns from drug money to technology.

Moe will say, “Well actually Bitcoin isn’t important. It’s the underlying technology; the blockchain is the future! I still believe there’s going to be a second-mover that takes over Bitcoin. I have more faith in blockchain technology.”

The phases are accelerating now and Moe’s opinion is changing faster and faster. The water is starting to boil, alarm bells are going off, but it isn’t time for blast off yet.

According to coinmarketcap.com, there are almost 5,500 digital currencies in circulation as of May 2020. 11 years ago, Bitcoin was created and the unknown Satoshi Nakomotos’ legendary code was out in the open. As the technology started to get recognized, many sought to copy its code. This proves to be a terrible strategy. We can see this play out in other software companies as well. Ever heard of Bing? VSCO? or most recently Quibi?

Bing sought to be a rival against Google search engine but failed miserably. Who the hell do you know that uses Bing? It probably is by accident because the user can’t figure out how to change browser preferences on the disorganized Windows operating system.

That brings me to VSCO. VSCO wanted to be Instagram. Nope, not going to happen. Yes, it gained some traction for what seemed to be for young girls’ “best” and “artsy” photos. However, you had to go through their Instagram bio link just to find them (SMH).

Quibi is the most recent failure of events. Quibi was trying to be a copy of Netflix, Youtube, Tiktok, it was trying to copy software left and right. It raised so much money and promised to deliver outstanding content in 10 minutes or less. Now Quibi’s founder blames TikTok and the coronavirus for its slow start and non-existent active user base.

So back to Bitcoin my friend Moe. Again, let’s bring in author Saifedean Ammous to explain. Ammous suggests these other 5000+ currencies, “are not in competition with Bitcoin because they can never have properties that make Bitcoin functional as digital cash and sound money. In order for a digital system to function as digital cash, it has to be outside the control of any third party;’ its operation needs to conform to the will of its users according to the protocol, with no possibility for any third party to stop these payments.”

Bitcoin has no central authority period. You can’t tell the CEO of Bitcoin to shut it down. You can’t sue Bitcoin, you can’t shut down the network. What makes Bitcoin beautiful is its transparency. Bitcoin is for the people. The great majority of these other currencies are scams and quick money makers. These coins give Bitcoin and the community a bad reputation. This same scenario happened in the dot com bubble starting in 2001. Everyone and their mother wanted to be tied to the term “Internet Company.” Now everyone wants to be tied to the term “Blockchain Company.” They are still a company with a centralized authority and a centralized database. This centralized system creates enormous security vulnerabilities. Bitcoin fixes this.

On page 256 in The Bitcoin Standard, Saifedean Ammous insists, “There is a reason real-world business don’t issue their own currency, and that is that nobody wants to hold a currency that is only spendable in one business…Holding forms of money which can only be spent in particular vendors offer very little liquidity and serves no purpose.”

Bitcoin by far has the most liquidity in the market place which separates itself as far as its risk/return profile. In reference to coinmarketcap.com, Bitcoin’s 24-hour volume is $48 billion. In comparison, the 10th largest by market capitalization, Trezos only has $100 million in 24-hour volume.

Source

Listen here my friend Moe! Anyone that tells you blockchain is the future, not Bitcoin, just doesn’t understand what Bitcoin is or how it operates. On page 259, Ammous backs up this narrative by saying, “The only advantage that it (blockchain) offers is eliminating the need to trust in third-party intermediation.”

“The code of life is written into an organism at its inception. Satoshi carefully architected Bitcoin’s DNA, or genetic code, to be the best sound money ever created.”
-Dan Held

On to the next phase my friend Moe. Keep Reading here:

Phase Transitions Of My Friend Moe ‘The Bitcoin Hater.’

Disclaimer *This is not financial advice*

-molesy


I have More Faith In Blockchain Technology was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.