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 paigerr1 on Tue, 01/20/2026 - 15:15

Big ass porn tv hot girls with huge asses in sex videos
https://shorts-dragonballx.xblognetwork.com/?myah-miah

emo porn mobile videos marketa belonoha eskimo porn pregnancy porn chat rooms jaime pressley porn panjabi ass porn free

Submitted by lillianla11 on Tue, 01/20/2026 - 15:59

Conferences in madrid 2024 international madrid conferences
https://photographer-requirements-spotlight.alypics.com/?kaylie-viviana

non degrading porn porn porn hurts porn skinny granny hun tube porn free anal ripped free porn

Submitted by elsiepe7 on Tue, 01/20/2026 - 16:42

Enjoy our scandal amateur galleries that looks incredibly dirty
https://agudo.tiktokpornstar.com/?taliyah-noemi

free vintage art porn erotica freeprn porn trannys best selling porn movie jeff palmer on porn sites suzie diamond porn star

Submitted by bonnieul2 on Tue, 01/20/2026 - 17:26

The 50 best sexy movies of the 21st century indiewire
https://niceboobsporn.relayblog.com/?amanda-jaylynn

anita and jasmine porn ebony black girls porn picture galleries lesben twins porn porn pussy video free free japanies porn

Submitted by joue11 on Tue, 01/20/2026 - 18:10

Gay porn videos free gay men twink sex movies pornhub
https://motorcycleevents2017-tumblrlatexslave.bestsexyblog.com/?yasmin-t...

porn ebony vidoes squirting porn fdee maria ozawa black porn video porn umd free romanric porn

Submitted by justinya1 on Tue, 01/20/2026 - 18:54

The best free youtube converters in 2022 watch your
https://smell-columbus.a4ktube.com/?damaris-xiomara

free kat von d porn video porn tube baily morgan high school cell phone porn pics indian porn sites andhra pradesh hena porn

Submitted by lealu9 on Tue, 01/20/2026 - 19:39

All porn tubes free sex videos everything in one place meta porn
https://anacore.hoterika.com/?tatyana-susana

futurama tube porn free porn pics bondage porn model betty ebony and white free orn china doll porn star

Submitted by lauriexp6 on Tue, 01/20/2026 - 20:23

All porn tubes free sex videos everything in one place meta porn
https://sharkvideos.topxxx69.com/?kathryn-micah

man young girl porn free over 50 porn free busty office porn mornington peninsula porn pictures yahoo answers free downloadable porn

Submitted by alexandriauv60 on Tue, 01/20/2026 - 21:07

Good looking horny nude chicks in photos
https://darlene-androidsexydancerredoutfit.alypics.com/?kelsie-daphne

gay porn long free vids hidden camera porn gallery men over 40 porn free home movie porn hand jobs grannies porn tube

Submitted by alysonbh8 on Tue, 01/20/2026 - 21:50

An explicit taboo hot stories best women s erotica anthology
https://reproduction-lexington.fetlifeblog.com/?kayli-amanda

funny adult porn vh1 girls in porn tween porn net babes porn free free japnace porn

Submitted by gabrielleaf9 on Tue, 01/20/2026 - 22:35

Granny 156 896 videos grandmamma movies free mature porn
https://violada-androidpornoforpyrosyearquartz.tiktok-pornhub.com/?maeve...

what is my porn name free porn tube thongs free threesome porn movies porn rich screaming porn vids

Submitted by jeannieis7 on Tue, 01/20/2026 - 23:17

Thousands Daily Updates
https://rapheal.celebrityamateur.com/?alejandra-delilah

high definition teen porn videos teen hardcore porn hardcore tennage porn watch now porn danish porn pics

Submitted by deloresav5 on Tue, 01/20/2026 - 23:59

Lewdspot porn games for browser no download adult games
https://ugaathletics.fetlifeblog.com/?nicolette-marissa

watch full length animei porn group asian porn xxx true life im in the porn papadoc porn jada fire compilation tube porn

Submitted by lavernelm5 on Wed, 01/21/2026 - 00:41

Oriental dream xv 14 tokyo cum shot inside pussy scope 02
https://voirunfilmx-nicebubies.amandahot.com/?fatima-melinda

black women hores porn cheer leader audition porn absolu porn hot free latina porn company computers and porn

Submitted by estherex8 on Wed, 01/21/2026 - 01:24

Porn categories xxx free porntube sex videos youporn
https://quarrel-leipzig.alypics.com/?aniya-alina

porn torrent pirate vice city otdoor porn trinity loren free porn tube hamster porn tube short skirt daughter friend porn

Submitted by joannaia5 on Wed, 01/21/2026 - 02:49

Pirates of the caribbean porn spoof sex video kompoz me
https://luellas.allproblog.com/?montana-xiomara

list of top black porn stars nyrobi knight porn clips porn kitana full metal alchenist porn too hard porn

Submitted by erinqt9 on Wed, 01/21/2026 - 03:33

The full frontal penis montage in minx has purpose mashable
https://lessbianpron-cutefriendpictures.sexjanet.com/?alanna-taya

free porn hd video search engine free porn for my blackberry tour ameture milf porn tryouts orn tube gay porn limp dicks

Submitted by robertae7 on Wed, 01/21/2026 - 04:17

Gay latino porn with big dick men in free videos pornhub
https://marwari.amandahot.com/?arely-jaidyn

san andreas porn mini game free lesbain strpon porn fat threesome porn clips teenie porn long movies amateur latina porn video

Submitted by katesb4 on Wed, 01/21/2026 - 05:01

Online porn and teenagers three fourths have seen some by
https://new-baby-photos.hoterika.com/?adeline-elle

crystal porn tube8 porn booksmarks kattie hale porn satr free online porn mobile download xxx fucking porn

Submitted by leonardyl16 on Wed, 01/21/2026 - 05:45

Honeyschool veronika hanakova bigtits close up auinty yes porn
https://poughkeepsie-picture.amandahot.com/?tabitha-elsa

porn free girlfriend year one porn grandma and grandpa porn american porns co of pink porn vids

Submitted by maryannecj8 on Wed, 01/21/2026 - 06:29

Top 100 female pornstars and models from czech republic xvideos
https://amateur-tasty.danexxx.com/?alanna-dania

free my little pony porn watch free porn iphone free lesbian porn double headed dildos dextors lab porn free artoon porn

Submitted by nellietd10 on Wed, 01/21/2026 - 07:13

The 26 sexiest adult movies on amazon prime marie claire
https://telemarketer-munich.xblognetwork.com/?mina-keely

mobile porn lisa ann become porn star zazzletube porn porn stars from pembroke black porn video sharing

Submitted by williebq2 on Wed, 01/21/2026 - 07:58

Free cartoon porn sites cartoon sex cartoon xxx videos
https://porn-pics-schoolgirl-uniforms.celebrityamateur.com/?nicole-lyndsey

free pain torture porn free ipod touch porn sites richest porn distributor aduld porn tubes sexy young teen porn pictures

Submitted by alycehc11 on Wed, 01/21/2026 - 08:45

Retro porn vintage erotica 30s 40s 50s sex tube videos
https://leicester-olivi.topanasex.com/?renee-alanna

toastee flavor of love porn video kuddy porn porn on the tribble porn pink thong andi porn

Submitted by alexqe16 on Wed, 01/21/2026 - 09:31

54 994 african american teens stock photos high res pictures
https://filthyvideostumblr-batmanporn.instasexyblof.com/?nayeli-miah

sex porn asian shara silverman porn pics free plump porn pictures free gay black porn websites escamo porn

Submitted by kenss11 on Wed, 01/21/2026 - 10:17

Hey everybody watch this monkey jerk off in front of paris
https://rxcams-androidsexualorientationdefinitioniphoneyiphone.sexjanet....

lesbian student on teacher porn galeries angela davies porn star older seducing younger free porn adilut porn suck and swallow porn

Submitted by philipki11 on Wed, 01/21/2026 - 11:02

25 best latina onlyfans in 2023 top latinas on only fans
https://wuppertal-meek.tiktokpornstar.com/?keeley-alysa

minnie mie porn sexy asians amuture porn porn video in phuket gagbang porn pics hot big ttit porn

Submitted by olgahp1 on Wed, 01/21/2026 - 11:47

6 free short christmas skits for churches loving christ ministries
https://lansing-boobage.energysexy.com/?kayla-julianna

free swedish gay porn porn from 1930 s keira knightly nude porn picture 3d animated porn little boy losng virginity porn vids

Submitted by ivaxr7 on Wed, 01/21/2026 - 12:29

Juegos porno 200 mejores juegos de sexo xxx gratis sin registro
https://androidsexualorientationdefinitionoftermsyang-tutor4k.tubered69....

houston porn star pictures nickalodan porn kindergarten porn pics ghetto booties porn free diana dalonna porn

Submitted by benjaminjs9 on Wed, 01/21/2026 - 13:12

Anyone know how to get ds games without r4 card r nds reddit
https://engagementgreetingcards.sexjanet.com/?kaitlin-kamryn

free adult porn videos dump only face orgasme video porn masturbation free porn clips innocent girls moogoo porn bodybuilder gay porn

Submitted by rosalindanr4 on Wed, 01/21/2026 - 13:57

Watch uncensored jav online free uncensored av watch online
https://sybianmachinetube-singleladieschoreography.energysexy.com/?stell...

daughter oral porn wealthy porn stars hot really young feet porn purple porn casting porn flakes toledo

Submitted by ritawz10 on Wed, 01/21/2026 - 14:42

18 porn sex teen xxx free porn videos hot sex movies
https://uniquelesbiansex-dirtypicsandquotes.sexjanet.com/?monique-montana

dog and man porn black women porn mobile fukko porn breast wishes brittany fox porn tube free cumshot xxx porn missy stone

Submitted by tonyxy2 on Wed, 01/21/2026 - 15:25

Pregnant sex videos preggo chicks and their unparalleled lust
https://bestphotoshopapp-isshealesbianquiz.bestsexyblog.com/?ellen-kaylah

biggest teen porn video japan porn voyeur free porn search android jos arvin porn business worlds largest porn site

Submitted by eulacr16 on Wed, 01/21/2026 - 16:07

Black uhd 4k 2160p porn videos with hardcore ebony sex
https://crucigrama.danexxx.com/?marlene-zoie

hot bangz porn sweatpants porn vids leslie foxx porn april little porn star best interacial porn comics on line

Submitted by pamelapn5 on Wed, 01/21/2026 - 16:49

Best selection of free older women porn pictures and sex
https://papas-hof.alypics.com/?jayde-eileen

thin voluptuous porn free tenderonis porn lil girls in porn free porn on your computer mature lesbian porn videos free

Submitted by shirleymp4 on Wed, 01/21/2026 - 17:34

54 994 african american teens stock photos high res pictures
https://4galsfree-lesbiennedansunbar.instakink.com/?maliyah-arlene

free amateur teen porn video family guy carrtoon porn movies old ugly grannie porn free amature porn in midland tx women men sex hot porn

Submitted by amberye11 on Wed, 01/21/2026 - 18:18

Incredibles funny cocks best free porn r34 futanari shemale
https://salamanca-wellin.sexyico.com/?jaylene-angela

teen surfergirl aka jessica porn petite porn tiny gay businessmen porn thumbnails free iphone porn katie price porn facial boobs

Submitted by francisog1 on Wed, 01/21/2026 - 19:03

Young leaf photos download the best free young leaf stock
https://marshal.instakink.com/?maci-darby

hispanic latino porn free free porn tubes and hubs debauchery porn hardcore tube movie dirty dental hygienest porn best safe porn

Submitted by ashleybc18 on Wed, 01/21/2026 - 19:48

Free porn sweet show porn movies xxx tube sex videos
https://dirtymilitaryjokes.tiktok-pornhub.com/?evelyn-ellie

ameture porn videos for free step daddy porn shayla porn star voyurism porn huge tit teen porn

Submitted by noelletf9 on Wed, 01/21/2026 - 20:31

Melyssa ford nude and sexy photos collection thothub
https://titds.danexxx.com/?piper-elena

newist porn stars sick hentai pregnant porn interacial psp porn the room porn movie rosa caracciolo porn videos

Submitted by robbiemd60 on Wed, 01/21/2026 - 21:15

Free cartoon porn videos sexy famous cartoons youporn
https://famousgayactorsinbollywood.adablog69.com/?madeleine-taryn

hentai porn lesbian shemale fuck blowjob fuck full length streaming plrn estonia porn boys town free porn facesitting men porn

Submitted by eveud11 on Wed, 01/21/2026 - 21:58

Afghanistan s top porn star bares all in intimate interview new
https://stimulatewomensbreasts.topanasex.com/?raven-bria

real horny moms porn gaay porn search engine free muscle cock porn free porn pictures bbw dildo mature hot bi sexual porn

Submitted by jesushd60 on Wed, 01/21/2026 - 22:41

Buy xxx adult porn magazines about us mag illustrated
https://hotgirlsgonewild.tiktok-pornhub.com/?america-priscilla

free porn cum guzlers sexy black porn videos retro porn bell school teacher porn mpegs free eva a porn

Submitted by gregim7 on Wed, 01/21/2026 - 23:26

Orban questions if russia s invasion of ukraine is a war
https://velk-zoelil.hoterika.com/?emilie-jacquelyn

horny babes love porn porn kim possible shego free tantra porn totally free crossdresser tube porn psp compatible free porn

Submitted by ursularx5 on Thu, 01/22/2026 - 00:09

10 best ebony cams top sites to watch black cam girls
https://gudniteimageswithquotes-nudeamateurclips.titsamateur.com/?ashly-...

wanking wife porn free porn sex cam live hardcore porn no signup monie love porn torrent cape cod porn

Submitted by roseanndt3 on Thu, 01/22/2026 - 00:53

Mature library quality lingerie picture galleries hot mature
https://slaveponyride.tiktokpornstar.com/?alexa-veronica

antasy free interent porn 3some porn story uncensored porn vdo chillipepper porn amaqtuuer porn

Submitted by gregoryln4 on Thu, 01/22/2026 - 02:22

Pdf perceptions on agriculture among freshmen students at
https://arab-vs-persian-jaylene.instakink.com/?arielle-jaden

best porn scene tube ever computer crimes porn euro porn star names illegal sex porn close up porn video

Submitted by lethaqx7 on Thu, 01/22/2026 - 03:06

Electro stim hottest sex videos search watch and rate
https://googleappsforworksignup-sexyvideosdwonlod.energysexy.com/?alissa...

vouyuer porn girls behind bars porn free tivia pornm movies messy babes porn galleries starfox hentai porn

Submitted by georgenu10 on Thu, 01/22/2026 - 03:50

Uncensored japan the best free uncensored japanese porn
https://corniestjokes.instakink.com/?alia-vivian

dvd self porn free free plumper porn downloads mobile free sex videos free porn gay ebony mobile porn hot young gay boy teens porn

Submitted by betteth10 on Thu, 01/22/2026 - 04:35

Free girls peeing outdoor porn videos 832 tubesafari
https://harburg-battery.xblognetwork.com/?reanna-maegan

stacy wife crazy porn thai girl yo porn free youngest porn pics free gf porn vedieos watch tila tequila porn

Pages