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The contrarian view is that the blockchain can make transactions and transfers cheaper, faster, and easier to validate in any currency. I don't need bitcoin to

by basseq 9y ago

The contrarian view is that the blockchain can make transactions and transfers cheaper, faster, and easier to validate in any currency. I don't need bitcoin to do any of that.

cjlars 9y ago
Curious what investment strategy that would lead you to... If your bullish on blockchain but bearish on bitcoin, you're looking at, what, Ripple?
- s3xham 9y ago
  Ripple is chainless. Ripple actually has the potential to scale beyond 10 minute block intervals; the speed of light, potentially a true interplanetary settlement network.
- basseq 9y ago
  I wasn't thinking in terms of investment strategy, but fair point given the original article. My real answer would channel Buffett and be to not invest in something I don't fully understand (or, more precisely, not invest in something I don't have an advantage in). Forced into a corner, I'd invest in firms who are exploiting the technology, like financial institutions, blue-chip tech companies, or consulting companies who implement same.
lmm 9y ago
Blockchain relies entirely on the value of bitcoin for its functionality. If bitcoin goes to zero, everyone stops mining and blockchain ceases to work.
- nnfy 9y ago
  I think he means there are alternative Cryptos which have block chains and may succeed in bitcoin's place.
  - lmm 9y ago
    Fundamentally there's always the same issue though. For the system to work in a trustless way, you need something bitcoin-like to be able to incentivise miners.
    - nnfy 9y ago
      Have a little more faith in the institutions of computer science and cryptography! I'm sure there's a solution, if it becomes a problem. Pow, pos, hybrids, Cryptos are in their infancy, I'm excited to see them supercede fiat currency, if such a thing could happen; long, winding road ahead.
- basseq 9y ago
  So define "blockchain" as "crypto-backed distributed ledger". The "distributed ledger" part of that isn't new. Crypto doesn't imply bitcoin. But yes, right now the two are inseparable, which IMO is part of the risk. I don't want a new currency: I want the benefits of the blockchain. A lot of the so-called benefits of bitcoin aren't really exclusive to it: they apply to any currency and a distributed ledger (and the implementation thereof). That "bitcoin" is what we call blocks, and blocks have value because they take effort to get, doesn't mean that's a robust currency. I can go dig gold out of the ground, or speculate on wireless frequencies, or whatever.
mrb 9y ago
You need network effect for it to be convenient. Bitcoin is the first. Bitcoin is the most used. Bitcoin has a measurable network effect.
- prostoalex 9y ago
  Ethereum boasts 3x the nodes and 1.5x the number of transactions http://www.flippening.watch http://www.flippening.watch

by basseq 9y ago

The contrarian view is that the blockchain can make transactions and transfers cheaper, faster, and easier to validate in any currency. I don't need bitcoin to do any of that.

cjlars 9y ago

Curious what investment strategy that would lead you to... If your bullish on blockchain but bearish on bitcoin, you're looking at, what, Ripple?

s3xham 9y ago
Ripple is chainless. Ripple actually has the potential to scale beyond 10 minute block intervals; the speed of light, potentially a true interplanetary settlement network.
basseq 9y ago
I wasn't thinking in terms of investment strategy, but fair point given the original article. My real answer would channel Buffett and be to not invest in something I don't fully understand (or, more precisely, not invest in something I don't have an advantage in). Forced into a corner, I'd invest in firms who are exploiting the technology, like financial institutions, blue-chip tech companies, or consulting companies who implement same.

lmm 9y ago

Blockchain relies entirely on the value of bitcoin for its functionality. If bitcoin goes to zero, everyone stops mining and blockchain ceases to work.

nnfy 9y ago
I think he means there are alternative Cryptos which have block chains and may succeed in bitcoin's place.
- lmm 9y ago
  Fundamentally there's always the same issue though. For the system to work in a trustless way, you need something bitcoin-like to be able to incentivise miners.
  - nnfy 9y ago
    Have a little more faith in the institutions of computer science and cryptography! I'm sure there's a solution, if it becomes a problem. Pow, pos, hybrids, Cryptos are in their infancy, I'm excited to see them supercede fiat currency, if such a thing could happen; long, winding road ahead.
basseq 9y ago
So define "blockchain" as "crypto-backed distributed ledger". The "distributed ledger" part of that isn't new. Crypto doesn't imply bitcoin. But yes, right now the two are inseparable, which IMO is part of the risk. I don't want a new currency: I want the benefits of the blockchain. A lot of the so-called benefits of bitcoin aren't really exclusive to it: they apply to any currency and a distributed ledger (and the implementation thereof). That "bitcoin" is what we call blocks, and blocks have value because they take effort to get, doesn't mean that's a robust currency. I can go dig gold out of the ground, or speculate on wireless frequencies, or whatever.

mrb 9y ago

You need network effect for it to be convenient. Bitcoin is the first. Bitcoin is the most used. Bitcoin has a measurable network effect.

prostoalex 9y ago
Ethereum boasts 3x the nodes and 1.5x the number of transactions http://www.flippening.watch http://www.flippening.watch