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> The reality is is that Blockchain is no longer new. Compare it to iPhone - they both roughly came out at the same time, yet we're still having the same conver

> The reality is is that Blockchain is no longer new. Compare it to iPhone - they both roughly came out at the same time, yet we're still having the same conversations - "What problem does Blockchain solve" - while the iPhone found its place in the market. I still do not understand what kind of problem the iPhone solves (seriously!), while I can imagine quite well what kind of problem Bitcoin attempted to solve when it came out. If you want to understand it, consider the coinbase parameter in the Genesis block: > https://en.bitcoin.it/wiki/Genesis_block https://en.bitcoin.it/wiki/Genesis_block "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks". This summarizes quite well the situation at that time: People feared that the dollar and euro system was on the brink of collapse; because of the bailouts and money printing, people feared inflation; the central banks became highly distrusted institutions etc. So at that time, a currency system that - is not based on a central trusted institution - has a limit on maximum amount of currency that can exist (so it is free of inflation) became a very desired one. We know that history turned out somewhat different - most people would argue that the trust in the national currencies has at least partly been reestablished. On the other hand, at least the original bitcoin protocol was eventually not able to abide its promises (e.g. scaling) or properties that people projected into it (anonymity; Bitcoin was never anonymous, only pseudonymous). So to me it is quite obvious what kind of Bitcoin attempted to solve and why at that time this solution seemed quite attractive. From today's perspective, we can probably say that Bitcoin - as in the original protocol - has mostly failed. On the one hand, people regained trust in the central banks (whether this trust is justified, can of cours be debated for hours), which makes the Bitcoin product now less attractive to the masses. On the other hand, the original protocol had scalability issues. Bitcoin promoters will argue that the scalability issues are now solved, altcoin promoters will argue that their altcoin offers properties that people loved to project into Bitcoin (anonymity). For most people, with the regained trust in national currencies, the problem that Bitcoin attempts/attempted to solve is - in opposite to the situation 2008/2009 - simply not a burning issue anymore. My opinion is: Bitcoin was an idea that seemed very attractive at the time when it came out, but history turned out differently (for good or bad).

madeofpalk 8y ago
While I'm not certain I could state what problem iPhone (or smartphones in general) solves, it's definitely proven market fit. Bitcoin has not.
- wolfgke 8y ago
  > While I'm not certain I could state what problem iPhone (or smartphones in general) solves, it's definitely proven market fit. Being a market fit does not mean that it solves a problem. To me, this is only one important reason (though IMHO a more safe one to bet on) among many, why aroduct is successful in the market. As I wrote: Bitcoin attempted to solve a problem that seemed (and in my opinion was) very important at the time when it came out (this also IMHO explains the initial hype). The problem simply has become a lot less important and urgent for most people in our days.
codebje 8y ago
Smartphones: "I want to search for something on the Internet when I'm not at home." It's a very simple problem statement, it's well solved by a smartphone, and it's a far superior solution than the pre-existing one, which was to find an Internet cafe or free wifi hotspot. This is borne out by smart phone adoption worldwide. Meanwhile, bitcoin was never better than the existing alternatives of barter and foreign currency for dealing with a failing central currency. It's not got substantial traction as an electronic currency. Bitcoin does solve one problem: "how can I rake money in from suckers when I'm providing them with nothing in return". It does this well. Tremendous amounts of money are going from "investors" to miners and people at the top of the pyramid. This can only continue so long as there's a growing base of new money coming in - but nothing of value is coming out, just the promise of more coming in later. My opinion is that Bitcoin was originally a political statement or thought experiment in crypto-anarchy, with a poorly thought out economic model that actively discourages its use as a coin, and history continues to reinforce that opinion.
sulam 8y ago
> I still do not understand what kind of problem the iPhone solves Did you try smart phones before the iPhone? It solves the problem they promised to solve but it actually delivered. High fidelity web browsing in your pocket is probably the biggest one, but there are more.

madeofpalk 8y ago

While I'm not certain I could state what problem iPhone (or smartphones in general) solves, it's definitely proven market fit. Bitcoin has not.

wolfgke 8y ago
> While I'm not certain I could state what problem iPhone (or smartphones in general) solves, it's definitely proven market fit. Being a market fit does not mean that it solves a problem. To me, this is only one important reason (though IMHO a more safe one to bet on) among many, why aroduct is successful in the market. As I wrote: Bitcoin attempted to solve a problem that seemed (and in my opinion was) very important at the time when it came out (this also IMHO explains the initial hype). The problem simply has become a lot less important and urgent for most people in our days.

codebje 8y ago

Smartphones: "I want to search for something on the Internet when I'm not at home." It's a very simple problem statement, it's well solved by a smartphone, and it's a far superior solution than the pre-existing one, which was to find an Internet cafe or free wifi hotspot. This is borne out by smart phone adoption worldwide. Meanwhile, bitcoin was never better than the existing alternatives of barter and foreign currency for dealing with a failing central currency. It's not got substantial traction as an electronic currency. Bitcoin does solve one problem: "how can I rake money in from suckers when I'm providing them with nothing in return". It does this well. Tremendous amounts of money are going from "investors" to miners and people at the top of the pyramid. This can only continue so long as there's a growing base of new money coming in - but nothing of value is coming out, just the promise of more coming in later. My opinion is that Bitcoin was originally a political statement or thought experiment in crypto-anarchy, with a poorly thought out economic model that actively discourages its use as a coin, and history continues to reinforce that opinion.

sulam 8y ago

> I still do not understand what kind of problem the iPhone solves Did you try smart phones before the iPhone? It solves the problem they promised to solve but it actually delivered. High fidelity web browsing in your pocket is probably the biggest one, but there are more.