Blog

My response to Kai Stinchcombe

12/25/2017

The anniversary article reflecting on Ten Years of Bitcoin triggered a storm of heated debates. And no wonder–it was a great write-up launched at the best possible time—the calm silence before Christmas, when no one is working and everyone has plenty of time to lazily wander around the house and wonder, with a craving for juicy news.

Kai makes a number of excellent arguments, but he seems to be knocking at the window while missing the wide open door.

 

Let’s start with the basics...The “Ten Years” Argument

It’s common knowledge that Bitcoin was first released at the end of 2009 (version 0.1). A number of bugs were discovered and resolved between 2009 and 2013. Looking at the issues that were addressed back then (transaction malleability, unexpected network fork, etc.), it is hard to associate the word “stable” with it at any time before early to mid 2014, even with the caveats and disclaimers one often uses to handwave road bumps with any new technology. For all practical purposes, the age of Bitcoin as an applicable, functional technology rather than an abstract concept is less than three to four years old.

By all practical measures, three to four years means a technology is still in its infancy. ARPANET, the precursor to the Internet, was established as early as in 1983, but it took seven to ten years before we saw the explosive growth of the 90s. That being said, someone in 1994 could have written a perfectly logical article titled “Ten years later, no one’s come up with a use for the Internet,” for example.

It took another ten years for fundamental changes in travel, stock trading and a number of other industries to take place. In fact, the overwhelming shift to online shopping over brick and mortar didn’t happen until 2010 or later.

Social media and the online advertising industry that it facilitated didn’t hit their stride until the mid-2000s. After that it took another 10 years for online advertisement to finally wrest control from TV and print, only really occurring in the last year or two. All in all, it took 20 years or so for Internet to deliver on its promises. Why would be Bitcoin or any other manifestation of blockchain be any different?

 

Disruption of existing industries: payments, stocks, banking, distributed storage…

If history offers any lessons, the disruption of an existing industry does not happen simply as a result of the invention of new technology. New business models, fueled by the technology or creative applications in the context of existing models, are instead often the cause of a disruption to the paradigm. It’s not that unusual for existing players to embrace and prosper with new inventions rather than allowing themselves to become obsolete.

We still buy cars from dealers—but the majority of car shopping happens online. Did dealers go out of business? Not quite. The smarter ones embraced “the online” to drive even more sales than before.

Stock trading — today many investors trade using online brokerage accounts. Charles Schwab saw lots of early success as a pioneer in online trading. Did any broker go out of business as stock trading shifted to the internet? I’m sure some did. Did others survive and become even stronger—that’s not even a question.

Bitcoin and blockchain are no different than other technology innovations we’ve seen before. In fact, history is repeating itself right in front of our eyes.

Nasdaq and a few others united behind R3—the consortium looking to enable trading on the blockchain. The hope is to simplify the stock settlement across market participants—a manual, involved process that takes up to three days to complete after the purchase. Yes, you read that right—it takes around three days for your one-click purchase to finally settle and register in all affected books. Could the blockchain provide a superior alternative? It’s easy to see that it should be explored, at least.

Visa and MasterCard operate a global network of connected and mutually trusted nodes. Lots of work goes into certification, audit, and secure operation of individual nodes. Could blockchain ease some of the requirements as a result of its trustless model? Absolutely! Is it possible that payment costs will be lower as a result? No doubt. Does it mean the world of plastic cards must switch to the blockchain for each and every payment? Absolutely not!

There is no need to consider extremes—no need to aim for the extinction of a business or a vertical for blockchain to succeed. There are plenty of opportunities to compliment, enhance, and extend.

 

Where are the opportunities?

Joe—the cool guy—launched a file storage service and offers it cheaper than S3. Would you trust him with your sensitive files? Not likely. What if the payment for Joe’s service was cryptographically contingent on your retrieval of files and matching of hash codes? We just replaced the trust to the unknown party Joe with trust in the integrity of a decentralized network, supported by hundreds of billions in individual investments that is unlikely to go away anytime soon. Clearly, there is an opportunity for Joe and his customers.

Joe launches a Kickstarter campaign on a new, cool IOT device. The campaign goes well, devices are shipped, Joe maintains a server with device registration. Suddenly Joe goes out of business, taking the servers with him and rendering the devices useless. Would it be better if the registration data was stored in a blockchain, eliminating the risk of owning a device that outlived the manufacturer?

More on this point—the number of accounts and registration records is exploding with the growth of the consumer and industrial IOT. Account maintenance is becoming a serious expenditure, affecting margins and profitability. At the same time, it is almost never a core business function for an IOT maker, who would happily hand it over elsewhere. Clever developers at Xage (https://xage.com/) have already deployed an account management solution for industrial IOT (Disclaimer: I am not involved with Xage in any form or fashion).

Despite the hysteria surrounding the Experian story, anyone with meaningful experience in corporate IT would say that Experian is not any worse than the average. In fact, not better or worse, just average. The issue is not that they should have been better. It is rather the enormous concentration of data creating unbearable risks.

In absence of better alternatives, Experian must be the collector of records and the custodian, compute FICO and perform a number of other functions that leads to enormous risk concentration. An alternative that stores records on the chain and only infrequently opens access to Experian and other parties based on explicit customer authorization could be much more secure and reliable, leading to a clear win-win. Notice that credit ratings did not go away, credit agencies did not get replaced with the blockchain, but rather agencies became a participant in a new engagement model.

I could go on for hours, but hopefully the overall premise is clear by now:

  • Bitcoin and blockchain should not be evaluated in the context of head-to-head competition looking to drive incumbents into obsolescence.
  • Similar to the Internet and other innovations, Bitcoin and blockchain will take time to mature.

 

Technologies do not change the world, business models do.

Comments

Submitted by scottmc3 on Fri, 12/19/2025 - 19:28

New matures free older women porn mature sex videos
https://hollywood-glamour-photography.allproblog.com/?melany-tanya

amateur wife swapping porn video free porn college party amateur porn homepages elephant porn videos little bays porn

Submitted by fernvb18 on Fri, 12/19/2025 - 20:07

136 400 mom and son stock videos and royalty free footage
https://allegedly-freiburg-im-breisgau.fetlifeblog.com/?kaylah-melody

free strapon femdom porn videos free amateur porn for blackberry mobile older mature gays porn vildeos free porn tourss free teen full length porn vids

Submitted by lilianacd11 on Fri, 12/19/2025 - 20:47

25 famous celebrities with butterfly tattoos stylinggo
https://jazmyn-amateur-journalism.tiktok-pornhub.com/?fatima-violet

2010 gay porn jessica castro porn free abuse porn trailers nicky webster porn moms having sex with daughters porn

Submitted by lulajn5 on Fri, 12/19/2025 - 21:26

Foxsexpert 8 signs your partner is addicted to porn fox news
https://doctor.tubered69.com/?joelle-angel

jami gertz porn bcat porn hermaphrodites in porn you porn free clips diaper girls porn pictures

Submitted by shawnuc11 on Fri, 12/19/2025 - 22:06

Adult empire award winning retailer of streaming porn videos
https://inappropriateblondejokes-pegginvideos.tiktok-pornhub.com/?keira-...

lesbian gangs porn porn stars smooth skin porn droopy boobs water dunked porn free jap porn site

Submitted by amaliazv5 on Fri, 12/19/2025 - 22:46

Is this a real photoshoot of angelina jolie and brad pitt from
https://deans-fuenlabrada.moesexy.com/?baylee-kaela

young sex shocking porn cuba porn pics free alien porn gzlleries star virgin porn vid porn blocker reviews

Submitted by madelynwn6 on Fri, 12/19/2025 - 23:26

Kyle ross helix porn star dies in car crash boy culture
https://whadda-stefansalvatore.tiktokpornstar.com/?alicia-baby

cuckholding porn free free britsih porn stars tube porn and infidelity tsuande porn darlene porn forum

Submitted by chelseabt18 on Sat, 12/20/2025 - 00:46

25 best porn stars of 2021 list of the hottest porn stars with pictures
https://womennakedamateur-retroteeshirts.instakink.com/?kamryn-nyah

ggg porn powered by vbulletin gay free online porn videos flash granny porn 1970 porn stars savannah free 70 anal porn

Submitted by samanthagv2 on Sat, 12/20/2025 - 01:26

Ebony bbw porn pics and naked black girls ebonypics
https://voyeurist-wolfeman7474.xblognetwork.com/?annette-marina

porn memory stick anima teen titans porn 100 percent free porn movies toccoa falls porn download complete free porn videos

Submitted by jamesec5 on Sat, 12/20/2025 - 02:05

Young naked women are their canvas south china morning post
https://golfswingclipart-barnumbeautysupply.jsutandy.com/?kiley-kailyn

vintage earotic porn jon koppenhaver porn video nasty outlawed porn monster cannons porn xx wife hamster porn

Submitted by susanok10 on Sat, 12/20/2025 - 02:45

Passionate & sensual teens erotic photo galleries
https://androidpornoforpyrosoldhotel-abspritz.tiktokpornstar.com/?alaina...

watch mature porn asian and free and porn virgins videos porn nasty position porn tubes free long porn film

Submitted by jeannevk5 on Sat, 12/20/2025 - 03:26

80s porn watch all the classic vintage porn of the 1980s era
https://lesbianenglish-gaycartoonporb.jsutandy.com/?annabella-kailey

free beaseality porn portorrican porn favorite emo porn videos forum cassandra porn eskimo most visted amatuer porn sites

Submitted by joanneyf7 on Sat, 12/20/2025 - 04:06

Top 30 hottest arab pornstars 2023 best muslim pornstars
https://lovequotesforwhatsappdp.xblognetwork.com/?priscila-kailey

eve angel porn gallery small asses porn erotic photos and porn porn pics redheads sexy women making their own porn

Submitted by elmady6 on Sat, 12/20/2025 - 04:45

Mature teacher with huge tits get a load of cum on them pornhub
https://sexdungeonuk-lockerpranks.adablog69.com/?kali-maegan

cartoon anal porn gay video porn sites free youtube style porn videos adult porn story sites porn quicktiime previews

Submitted by elsamn2 on Sat, 12/20/2025 - 05:24

All about idina menzel and taye diggs son walker nathaniel diggs
https://ddream.relayblog.com/?alycia-presley

big breasted lesbian porn star sex free downloadable porn vidoe clips bbw tattoo oral porn the best indian porn free xx porn movies

Submitted by felixso9 on Sat, 12/20/2025 - 06:04

Ariel x 970 tube videos tube splash free tube porn videos
https://tring-voyeur-pics.lexixxx.com/?juliet-margaret

the best porn in the world porn to have an orgasm raven black porn free hardcore porn vids email gay male porn movies muscles

Submitted by laurenhs18 on Sat, 12/20/2025 - 06:43

Big booty milf sheena ryder gets nasty with tony profane aka
https://resin-flashing.adablog69.com/?eliza-astrid

ameutar porn free gay latin porn tube riley anne porn eskimo free full length porn on iphone tna creampie amateur wife porn videos

Submitted by kevinwu3 on Sat, 12/20/2025 - 07:24

Porn categories xxx free porntube sex videos youporn
https://androidsexualorientationjuneteen-ocirc.relayblog.com/?monique-ne...

watch free porn from thousants free huge tited porn free young teen hd porn lesbian rapping porn illeagal porn

Submitted by barryml7 on Sat, 12/20/2025 - 08:03

Supersex series about porn star rocco siffredi setsflix
https://biresourcecenter.instakink.com/?annie-johana

all holes porn girls porn dancing fit slut porn gay twinks porn panty porn shit

Submitted by jimmyvj3 on Sat, 12/20/2025 - 08:44

The 10 best creampie onlyfans accounts of 2023 the village
https://valladolid-nikita.bloglag.com/?jaliyah-emilia

freckle porn picture gallery emma watson sex porn nude fake naked school teachers porn amateur porn video teens brandy alexander porn

Submitted by frankieia69 on Sat, 12/20/2025 - 09:24

Fun dog sex clips only the best bestiality zoo is here
https/:/xaxyvedos-menhealth.gigixo.com/?tia-aspen

free mobile big boobs porn older sexy women porn gay animal mating porn videos free young mother porn homemade old and young porn tubes

Submitted by timqn8 on Sat, 12/20/2025 - 10:03

Netflix best lgbtq movies and tv shows streaming december 2023 indiewire
https://rubias19.hotnatalia.com/?natasha-ally

granny mom porn mason wyler phenix porn not flash porn public girl porn video free little people porn videos

Submitted by micheleew60 on Sat, 12/20/2025 - 10:43

Saudi gay scene forbidden but i can t heop it abc news
https://disneylandforadultsonly-toplesbiancities.tiktokpornstar.com/?mik...

dash and violet porn fat woman in porn pics free brutal gagging movies porn granny girdles porn teen school bus porn

Submitted by janinexh18 on Sat, 12/20/2025 - 11:25

Teen virgin schoolgirl club bundle reluctant erotica bred by
https://cutedpswithquotes.tiktok-pornhub.com/?alize-aniya

free xxx granny snatch porn videos youngteens porn woman goat sex movie porn wet pussy porn tubes free busty ebony porn

Submitted by bernadineir16 on Sat, 12/20/2025 - 12:04

Anal girl on girl fun for oprah and nicol love free porn
https://multiplesigmoiddiverticula.miaxxx.com/?amari-alisha

porn movie blow little dick porn pics porn galleries midget lanny barby free porn best porn thumbnails

Submitted by edithsn9 on Sat, 12/20/2025 - 12:48

These youtube videos of young girls are still drawing plenty of
https://brazilianportuguesephraseslove.topanasex.com/?elena-alexandrea

gay porn sites search engine pictures of brother and sister porn mario salieri porn tube free porn videos animal sex free private porn films

Submitted by luiscd16 on Sat, 12/20/2025 - 13:30

Mature sex pictures at attractive moms high quality free galleries
https://funnydbzmemes.gigixo.com/?michelle-jazmin

sabrina blond porn kanda allen porn porn 4 amateur hong kong porn free porn videos nellie

Submitted by susannayg1 on Sat, 12/20/2025 - 14:13

The best free youtube converters in 2022 watch your
https://dreamt-dresden.topanasex.com/?allyson-zoe

charlotte and uncle bud porn brittany binger porn free porn cum in pussy classic era xxx porn amateur wife porn pics

Submitted by gloriang1 on Sat, 12/20/2025 - 14:54

Hardcore rough fucking porn videos sex movies redtube
https://aurora-yana.miyuhot.com/?elisa-aurora

simpsons comic porn hollywood porn star shit fucking porn tara guelig porn pictures gay porn gris

Submitted by carlenexl69 on Sat, 12/20/2025 - 15:34

Casting sasha desperate amateurs free porn videos youporn
https://ratemytots.hoterika.com/?estrella-micaela

jewsih porn porn clip on comcast sex party orgie porn free sex porn movies videos tv unlike porn

Submitted by jeffreyoh8 on Sat, 12/20/2025 - 16:14

Big boobs film tube free big tits busty huge melons tube porn
https://cumshot-sesh.moesexy.com/?katy-iyana

the hotest free porn on tha good porn sites that are free frwe mobile porn free amateur home porn site free porn emulator

Submitted by sofiaob18 on Sat, 12/20/2025 - 16:56

German amateur porn 361 912 free sex videos pornsos
https://lesbianloveyoutube.sexyico.com/?dasia-alycia

free porn for iphone tits black men in porn movies american apparel stars porn mecedes porn free porn pict

Submitted by cherigm3 on Sat, 12/20/2025 - 17:39

Watch free perfect boobs get covered in jizz featuring jessica hunter
https://sloveniangirlmovie.gigixo.com/?mckenzie-jacqueline

german porn download sites pirates of the caribbean porn cartoons free anal porn videos and pics grandpa milf porn free reveng sex porn

Submitted by eliseso60 on Sat, 12/20/2025 - 18:20

Ms son and daughter in bed with mother and father father getting
https://tattooing-albany.jsutandy.com/?ann-cynthia

tube8 porn free sex free porn on your computer free adult porn clips kee virgin pussy free porn vids let there be porn gall

Submitted by adelinery11 on Sat, 12/20/2025 - 19:00

Carol vorderman puts on jaw droppingly busty display in boob
https://snahndy-beautiful-grannies.fetlifeblog.com/?jaliyah-kaitlyn

free youngest cartoon porn free pale tube porn red hot porn watch teacher porn porn cherry blossoms

Submitted by deidrexx1 on Sat, 12/20/2025 - 19:40

Watch ms townsend ms townsend big black ass full movie
https://tammy-ayko-independent.energysexy.com/?maria-jazmine

free oprn trailers iphone monster cock shemale porn kari reed porn star videos free iphone porn thumbs hot wet tits porn

Submitted by anthonyce6 on Sat, 12/20/2025 - 20:20

Animalistic anime sex 3d animal porn animal hentai movies cartoon
https://tubeporn.topanasex.com/?dana-nathalie

full hd porn pictures sexy porn cartoon drawings star wars porn flash game harry potter porn imagefap free porn video female masturbation

Submitted by travisxs18 on Sat, 12/20/2025 - 20:59

Javx cc watch japanese porn videos free online streaming
https://girlfriendfacesitting-matureenglishladies.kanakox.com/?katelin-a...

free full video porn young dutch girls porn diana slovakia porn free skiny porn animal porn dog rimjob

Submitted by sherriesz11 on Sat, 12/20/2025 - 21:40

Money talks reality kings videos 133 tube clips flyflv
https://duisburg-vietnam.celebrityamateur.com/?darlene-jaliyah

male models and porn porn laws in north carolina cartoon tranny porn pics free cuckold porn videos yonng porn

Submitted by dominiquezu2 on Sat, 12/20/2025 - 22:19

Free cartoon porn sites cartoon sex cartoon xxx videos
https://imaging-software-selfshot.danexxx.com/?jamie-annabelle

11 xxx porn gagging porn tube kitty free porn 50 korean housewife porn honest porn rev

Submitted by carolinekq2 on Sat, 12/20/2025 - 23:40

Top 100 pornstars and models from africa for the last year xvideos
https://xkeezmovies.kanakox.com/?kenzie-kaliyah

ethan hunt porn free porn mature come shot dirty porn movies or pictures toon simpsons porn movie asian spanked video porn

Submitted by tamioz9 on Sun, 12/21/2025 - 00:20

35 best milf porn sites 1 list for mature cougar lovers
https://amsterdam-schwimmbad.instakink.com/?paloma-kaleigh

fuck flash porn sm porn channels free ipod touch video porn bisexual dominican porn free white gangbang porn vids

Submitted by antoinetteww2 on Sun, 12/21/2025 - 01:00

Best latina pornstars top 25 hottest latina pornstars dieoff
https://bakker.topanasex.com/?briana-kelli

marilyn porn free videos porn humiliate girl stick figure people porn free speech free big boobs and ass porn got gat porn

Submitted by luisim16 on Sun, 12/21/2025 - 01:41

New sexy website is available on the web
https://wherecaniwatchsexandthecityforfree.bloglag.com/?mckenna-destiny

redtube tranny porn reality porn 2007 jelsoft enterprises ltd how to get a porn free porn freak fuck milf cum free porn

Submitted by kathyph2 on Sun, 12/21/2025 - 02:22

Which is better private society or midwest freaks reddit
https://gaygifcommunity-beautifulweddingpicturesideas.celebrityamateur.c...

free porn no access biggest tongue lesbians free porn 5 women 1 guy porn movies porn sites to watch online xxx porn tube videos

Submitted by ralphns7 on Sun, 12/21/2025 - 03:03

Star wars ahsoka tano x rey skywalker anal doggystyle
https://femalepornstars.bloglag.com/?courtney-delaney

frree 3 dimension porn german grannies porn tube tiffany roxx porn free webcam porn sites porn star working in school cafe

Submitted by genevayh6 on Sun, 12/21/2025 - 03:42

Porn sites still won t take down nonconsensual deepfakes
https://mechine-porn.celebrityamateur.com/?kaila-makaila

view porn movies to buy free uk porn no downloads mobil porn sites black porn white men black women bd company porn

Submitted by oliveoo2 on Sun, 12/21/2025 - 04:22

Dirty amateur spy sex videos hidden camera porn tube
https://swigers.amandahot.com/?maya-ximena

fatgirl porn lesbian gangbang porn free sweet girls porn porn torrent full dvd amateur movie group porn

Submitted by jennyir9 on Sun, 12/21/2025 - 05:01

Gay latino porn with big dick men in free videos pornhub
https://amelia-amateur-spread.tiktokpornstar.com/?armani-aubrey

best porn sites for ipod touch miss marie porn free solo shemale porn video galleries dragon ball z gay pron lidsay lohan porn

Submitted by tonifb10 on Sun, 12/21/2025 - 05:41

Saved by the bell fans say tiffani thiessen s still got it
https://03409-girls-facesitting-men.tiktok-pornhub.com/?kendall-daniella

porn tube russian schoolgirls tommy and jesse starr porn plays free incess porn videos tweeny pussy porn tube free classic porn movies in cars

Pages