The Investment Outlook
Hypothesizing about cultural and economic impacts at scale.
We have presented Bitcoin as an innovation in organization design. In this section, we will look at the broader impact of this innovation, its cultural relevance outside computer science, and how business may develop on top of it.
Cultural-historical timing is apt
Ward Cunningham is the engineer who coined the metaphor “technical debt,” and he draws a parallel between poor choices in software development and financial debt:
“I coined the debt metaphor to explain… cases where people would rush software out the door, and learn things, but never put that learning back in to the program. That, by analogy, was borrowing money thinking you never had to pay it back. Of course if you do that, eventually all your income goes to interest and your purchasing power goes to zero. By the same token, if you develop a program for a long period of time and only add features—never reorganizing it to reflect your understanding—then all of efforts to work on it take longer and longer.”
We can take this generally to mean that human systems must evolve as their designers learn more about how people behave inside them. If systems do not evolve along with our understanding of their purpose and dynamics, then these systems will fall into debt. In a public cryptocurrency system, stagnation means that malicious or negligent actors will eventually undermine the network.
The Occupy Wall Street movement emerged just two years after Bitcoin, in 2011, as a response to an un-audited $29 trillion Fed lending binge that exceeded the $700B TARP limit set by Congress. It can be said that OWS protested the origination of public debt by managers of the system.
Bitcoin is a similar protest for software developers who do not want technical debt originated for them by a managerial class. Both Bitcoin and Occupy Wall Street are responses to a perceived weakness in human systems, which occasionally allow small groups of managers to endebt everyone else. Bitcoin’s solution to this anti-pattern is to automate the management of important human systems in ways that are beneficial for participants.
Dilution of institutional boundaries may ensue
To understand the impact of Bitcoin, we return to Coase, and his theory that firms exist to reduce the transaction costs of specialists who collaborate in business. If peer to peer currency systems can lower financial transaction costs enough, they may eliminate the benefit of large firms entirely, replacing them with loosely-aggregated groups of SMBs sharing commonly-maintained infrastructure.
Coase writes that such a development would have massive societal impact, namely to subvert intellectual property laws and undermine the economics of large institutions:
"I showed in ‘The Nature of the Firm’ that, in the absence of transaction costs, there is no economic basis for the existence of the firm. What I showed in ‘The Problem of Social Cost’ was that, in the absence of transaction costs, it does not matter what the law is, since people can always negotiate without cost to acquire, sub-divide, and combine rights whenever this would increase the value of production. In such a world the institutions which make up the economic system have neither substance nor purpose. Cheung has even argued that, if transaction costs are zero, ‘the assumption of private property rights can be dropped without in the least negating the Coase Theorem’ and he is no doubt right.”
He elaborated in a subsequent book: “Businessmen will be constantly experimenting, controlling more or less, creating a moving equilibrium” between full-time and temporary contract labor. These impacts are also consistent with the stated goals of Satoshi Nakamoto and the Cypherpunks, whose resistance to institutional authority is rooted in a resentment for the managerial class and for the laws that protect and incentivize proprietary software.
Timothy May, the Intel executive and an original cypherpunk, predicted in 1992:
“Just as the technology of printing altered and reduced the power of medieval guilds and the social power structure, so too will cryptologic methods fundamentally alter the nature of corporations and of government interference in economic transactions. Combined with emerging information markets, crypto anarchy will create a liquid market for any and all material which can be put into words and pictures. And just as a seemingly minor invention like barbed wire made possible the fencing-off of vast ranches and farms, thus altering forever the concepts of land and property rights in the frontier West, so too will the seemingly minor discovery out of an arcane branch of mathematics come to be the wire clippers which dismantle the barbed wire around intellectual property.”
By eliminating the middlemen who mark up transaction costs at each stage of the value chain, SMBs that build on top of Bitcoin—especially cooperatives, nonprofits, and solo entrepreneurs—can trade their digital goods and services directly with end users at near zero marginal cost.
What cryptocurrency-based independent employment looks like
Individual entrepreneurs or small groups of developers can monetize free and open source projects in a number of ways. They can port the software onto new hardware and license it to businesses using that hardware, or they can sell teaching, support, and maintenance services. Contracting with tech companies to write programs using a free and open source library is another tactic. Indeed, many cryptocurrency developers have small consultancies that engage in consulting services; an example would be Ethereum co-founder Gavin Wood’s software agency Parity.
Older FOSS projects provide insights into the future of Bitcoin. In the case of Mozilla Firefox, intellectual property for the browser resides in a nonprofit corporation, the Mozilla Foundation, which is funded by donations and corporate grants. Taxable business activities are conducted in a wholly-owned for-profit subsidiary, the Mozilla Corporation, which was formed in August 2005. The corporation builds and distributes Firefox, and earns revenue from search referrals to Google and other search engines. This “dual entity” structure, with a foundation and a corporation, has been mimicked in other open source projects, including Bitcoin, which is maintained by a group of developers known as “Bitcoin Core,” some of whom have formed a commercial entity called Blockstream, which builds enterprise applications on top of Bitcoin for profit.
We have established that miners receive the lion’s share of wealth created by the Bitcoin network, and as a result, miners may become large sources of development capital. Many large-scale miners also manufacture machines, operate mining pools for other miners at a small fee.
Bounty-hunting is another approach to software entrepreneurship. Across all categories of work, freelancing employed 42 million Americans 10 years ago, and employs 53 million today, contributing over $715 billion a year to GDP. An increasing number of freelance platforms are offering work per-job, or in software terms, paying per problem solved.
Contract job boards such as GeekBoy, HackerOne, ZeroCOpter, CugCrowd, and Gitcoin allow developers to take contract development jobs on a per-problem basis, getting paid for their solution, not their time. Major technology corporations have used so-called “bug bounties” for decades; Augur, a popular blockchain project, can be seen below using the bounty hunting method to address a security vulnerability.
Perhaps the best implementation of a bitcoin-based bounty hunting system is BitHub, created by cypherpunk and Signal Messenger creator Moxie Marlinspike. BitHub does two things for Signal Messenger, which is free and open source software:
It allows Signal Messenger to take donations in bitcoin
It pays out this bitcoin to developers who fix bugs
In this way, existing products and services can hire and retain high-quality engineering talent, on a completely pseudonymous basis, and totally ad hoc, simply by offering a Bitcoin payment. Signal is amongst the highest-rated products in its category of “secure messenger applications.” It has been the chat application of choice for Hillary Clinton and her staff since at least August 2016, among other high-profile hacking targets.
Investigating the altcoin business model
Because Bitcoin develops slowly in the “bazaar,” and has no marketing department, it can appear from the outside fairly chaotic, and by all appearances “worse” than privately-developed alternatives. As free software, anyone can copy it and create such a private alternative.
Launching an altcoin gives you the financial runway to reproduce the stability of corporate employment, without answering to investors. (Just miners and users!) What is the distinction?
In a cryptocurrency context, a “scam” is a project which:
Will not grow or retain its developer pool, forestalling any chance at viral growth or stability.
Is actively shrinking in the number of full node operators and/or miners.
Will not provide a platform for the development of economic activity for any other reason.
Not all network operators are intentional scammers. For a new network, conscious choices which limit network growth may simply be a sign that the team is not confident in the network’s longevity. Thus, it can be easy to spot poor quality projects by their reliance on short-sighted tactics. While there is no firm litmus test for the viability of a project, the following characteristics can be considered red flags:
вход bitcoin bitcoin farm описание bitcoin контракты ethereum курса ethereum фарминг bitcoin alpha bitcoin tether приложение bitcoin лопнет
bitcoin crypto
майнить bitcoin разработчик ethereum monero proxy
monero вывод bitcoin map курс monero дешевеет bitcoin займ bitcoin buy tether cubits bitcoin spots cryptocurrency bitcoin invest
bitcoin api кошельки bitcoin ethereum developer
bitcoin traffic matteo monero
satoshi bitcoin monero калькулятор bitcoin spinner
9000 bitcoin bitcoin 2 reverse tether carding bitcoin microsoft bitcoin new cryptocurrency bitcoin webmoney
bitcoin trust bitcoin com
p2pool bitcoin
bitcoin зарегистрироваться bitcoin system
best bitcoin monero pro ann bitcoin ethereum habrahabr goldsday bitcoin boxbit bitcoin seed bitcoin фермы bitcoin bitcoin reserve bitcoin генераторы bitcoin daily bitcoin elena games bitcoin byzantium ethereum картинка bitcoin bitcoin майнить bitcoin gambling bitcoin click bitcoin кранов siiz bitcoin bitcoin сети ethereum токен supernova ethereum people bitcoin сайты bitcoin 0 bitcoin торрент bitcoin bitcoin gambling bitcoin доходность bitcoin conveyor
legal bitcoin
monero logo
майнеры monero claim bitcoin
wired tether bitcoin prominer проекты bitcoin
electrum bitcoin bitcoin xl play bitcoin bitcoin теханализ bitcoin checker майнеры monero bitcoin ads новости bitcoin usb bitcoin cryptocurrency calculator asics bitcoin There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to, that – along with all Bitcoin transactions – is verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite it not being legal tender, Bitcoin charts high on popularity, and has triggered the launch of hundreds of other virtual currencies collectively referred to as Altcoins.bitcoin easy cryptonator ethereum ethereum алгоритмы When multiple valid continuations to this chain appear, only the longest such branch is accepted and it is then extended further.ethereum parity monero fr
bitcoin оплата
bitcoin course bitcoin заработок bitcoin online vk bitcoin bitcoin p2p купить bitcoin bitcoin stiller
ico ethereum bitcoin unlimited bitcoin switzerland ethereum транзакции ethereum rotator bitcoin wm асик ethereum хайпы bitcoin bitcoin валюты bitcoin кранов зарабатывать bitcoin metal bitcoin app bitcoin algorithm bitcoin bitcoin hardfork bitcoin get bitcoin maps iphone tether polkadot su bitcoin 15
ethereum wallet эфир ethereum mmgp bitcoin bitcoin проверка monero minergate bitcoin зарабатывать
2x bitcoin bitcoin валюты lurkmore bitcoin georgia bitcoin обои bitcoin bitcoin продам bitcoin лохотрон bitcoin видеокарты mining bitcoin bitcoin описание bitcoin xl сервера bitcoin bitcoin fees 999 bitcoin fast bitcoin пример bitcoin сбербанк ethereum биржа ethereum bitcoin masters торрент bitcoin порт bitcoin bitcoin skrill system bitcoin bitcoin hash акции ethereum bitcoin деньги local ethereum daemon monero pool bitcoin stock bitcoin ethereum токен Get top-tier security for you %trump2% your loved ones with this limited-time Ledger Holiday sale. Save 21% on all Ledger Family Packs!bitcoin pdf bitcoin аналоги Ethereum’s blockchain is a further advanced version of Bitcoin’s blockchain. It fixes some of its issues and introduces new features such as smart contracts.zcash bitcoin Cheaper to transferалгоритм monero bcn bitcoin
проверка bitcoin котировка bitcoin preev bitcoin bitcoin virus bitcoin key
bitcoin asic bitcoin dice bitcoin foundation bitcoin обсуждение
ethereum вывод bitcoin mixer зарабатывать ethereum vk bitcoin film bitcoin bitcoin planet testnet ethereum
bitcoin surf bitcoin arbitrage bitcoin hardfork bitcoin config bitcoin take bitcoin euro reddit cryptocurrency supernova ethereum bitcoin main сборщик bitcoin Big stack of Bitcoin coinsbitcoin video bitcoin school bitcoin count bitcoin word claim bitcoin lamborghini bitcoin фото bitcoin bitcoin store bitcoin пул ethereum bitcointalk суть bitcoin bubble bitcoin network bitcoin ethereum получить ethereum parity расчет bitcoin 5 bitcoin курса ethereum free ethereum bitcoin map ethereum tokens bitcoin grafik bitcoin maker банкомат bitcoin
bitcoin eobot homestead ethereum bitcoin значок
bitcoin betting future bitcoin check bitcoin bitrix bitcoin bitcoin кошелька r bitcoin difficulty monero bitcoin bounty я bitcoin bitcoin okpay
zebra bitcoin генератор bitcoin bitcoin кошелька
bitcoin p2p cgminer ethereum ad bitcoin moneybox bitcoin raiden ethereum токен bitcoin ethereum markets bitcoin мерчант bitcoin dogecoin xpub bitcoin bitcoin расшифровка
новости monero bitcoin get config bitcoin decred ethereum bitcoin payoneer ethereum форум lootool bitcoin bitcoin fpga bestchange bitcoin
зарабатывать bitcoin best bitcoin apple bitcoin bitcoin review monero algorithm обзор bitcoin обменник bitcoin bitcoin 1000 bitcoin bitminer etherium bitcoin ethereum контракты rotator bitcoin код bitcoin bitcoin take monero прогноз ethereum nicehash monero обменять bitcoin bloomberg сложность bitcoin вывод ethereum
bitcoin магазины ethereum биткоин
bitcoin депозит bitcoin blocks ethereum course credit bitcoin bitcoin forex bitcoin 20 code bitcoin mining bitcoin ethereum habrahabr bitcoin capital Plenty of people have strong feelings about where to buy it or what companies they want to do business with; ultimately it comes down to your country of residence, how much you want to buy, how hands-on you want to be with it, and whether you want to accumulate it or trade it. There are trade-offs for convenience, security, and fees for various choices.ethereum история What exactly is Cryptocurrency?баланс bitcoin red bitcoin mining ethereum bitcoin nonce сети bitcoin credit bitcoin bitcoin kraken ethereum получить debian bitcoin monster bitcoin ethereum transactions bitcoin land car bitcoin bitcoin blog клиент ethereum bitcoin eu
bitcoin conf
The Beginner’s Guidebitcoin wm bitcoin ann bitcoin миксер lamborghini bitcoin bitcoin kurs scrypt bitcoin ethereum crane bitcoin token иконка bitcoin bitcoin mixer bitcoin hunter bitcoin 999 bitcoin перевод bitcoin шифрование plus bitcoin logo ethereum bitcoin cryptocurrency epay bitcoin автомат bitcoin key bitcoin
bank bitcoin
заработка bitcoin доходность ethereum store bitcoin кран bitcoin bitcoin gambling вики bitcoin the ethereum monero usd bitcoin yandex вывести bitcoin bitcoin euro ethereum ios bitcoin auto
сбербанк ethereum
bitcoin blog bitcoin блокчейн bitcoin anonymous bitcoin проблемы bitcoin вики A ‘big idea’ — how will your blockchain project help a specific industry? What problem will it solve?обновление ethereum monero xmr
avto bitcoin wikipedia ethereum bitcoin игры fun bitcoin goldmine bitcoin alien bitcoin exchange ethereum bitcoin лого кости bitcoin monero 1070 валюта tether polkadot stingray As for your private key, you should never let anyone see it. On the blockchain, your private key is your identity. You use your private key to access your Bitcoin. If someone sees it, they can steal all your Bitcoin — so be very careful!tether 4pda логотип bitcoin казино ethereum bitcoin legal bitcoin store bitcoin создатель ethereum mining
bitcoin aliexpress биржа bitcoin bitcoin elena скачать bitcoin
ethereum виталий best bitcoin
продам bitcoin bitcoin blockchain putin bitcoin bitcoin agario ethereum mining bitcoin bbc gui monero 2016 bitcoin bitcoin картинки split bitcoin fire bitcoin
bitcoin алматы bitcoin scam bitcoin land neteller bitcoin autobot bitcoin jax bitcoin консультации bitcoin bitcoin golden bitcoin p2p ethereum обмен monero benchmark Bitcoin transactions seek to operate more like cash: exchanged person-to-person without a financial intermediary.You should now know pretty much everything you need to know about mining Bitcoin; from the reasons, you should consider mining Bitcoin, to the setup procedure, and the answer to the question 'how long does it take to mine a Bitcoin.' If you wish to know more about Bitcoin mining software, click here. If you're interested in top Bitcoin mining hardware, press here.ethereum обменники rbc bitcoin bitcoin дешевеет
дешевеет bitcoin bitcoin linux bitcoin автоматически bitcoin p2pool bitcoin государство ethereum casino ethereum виталий bitcoin книги tether обменник сервера bitcoin bitcoin prune xbt bitcoin dog bitcoin капитализация bitcoin maps bitcoin рейтинг bitcoin торрент bitcoin Zk-rollups: These use zero-knowledge proofs, a relatively new cryptographic technique used to prove that some information exists, without revealing what the information is.trezor bitcoin bitcoin разделился You should make sure you never forget the password or your funds will be permanently lost. Unlike your bank, there are very limited password recovery options with Bitcoin. In fact, you should be able to remember your password even after many years without using it. In doubt, you might want to keep a paper copy of your password in a safe place like a vault.bitcoin knots bitcoin wm magic bitcoin bitcoin халява monero price 2x bitcoin bitcoin магазины ethereum прибыльность bitcoin приложения bitcoin check bitcoin официальный bitcoin download bitcoin airbit ethereum api calculator ethereum blog bitcoin polkadot cadaver bitcoin registration froggy bitcoin cryptocurrency charts moneypolo bitcoin clame bitcoin ann bitcoin bitcoin подтверждение bitcoin click dark bitcoin bitcoin foto bitcoin brokers cryptocurrency arbitrage bitcoin серфинг bitcoin развод
bitcoin конвертер rbc bitcoin casascius bitcoin ethereum монета яндекс bitcoin pokerstars bitcoin брокеры bitcoin bitcoin key фермы bitcoin safe bitcoin
habrahabr bitcoin bitcoin блок bitcoin safe
supernova ethereum акции ethereum
капитализация bitcoin exchanges bitcoin bitcoin market bitcoin genesis ethereum blockchain
bitcoin иконка bitcoin курс erc20 ethereum stellar cryptocurrency bitcoin минфин bitcoin registration multiply bitcoin avto bitcoin tether bitcointalk обновление ethereum jaxx monero bitcoin официальный bitcoin s maps bitcoin ethereum википедия amazon bitcoin bitcoin софт asic bitcoin bitcoin maker bitcoin poloniex спекуляция bitcoin
trezor ethereum
monero address weekly bitcoin bitcoin x2 ethereum логотип китай bitcoin ethereum myetherwallet ethereum википедия
monero spelunker bitcoin авито monero free bitcoin life окупаемость bitcoin bitcoin валюты vpn bitcoin rpc bitcoin проверка bitcoin reindex bitcoin bitcoin вебмани bitcoin pay monero gpu аналоги bitcoin bitcoin луна bitcoin scan bitcoin png bitcoin qazanmaq bitcoin pdf
bitcoin фильм bitcoin перспективы clame bitcoin tether обзор bitcoin видео nicehash bitcoin cryptocurrency charts bitcoin анализ 50000 bitcoin bitcoin boxbit bitcoin ukraine сделки bitcoin bitcoin machines скачать tether bitcoin drip ethereum кошелька bitcoin комиссия monero pro bitcoin casinos игра bitcoin global bitcoin ethereum transactions bitcoin wordpress bitcoin конвертер free monero bitcoin accelerator lamborghini bitcoin copay bitcoin bio bitcoin получить bitcoin bitcoin хабрахабр puzzle bitcoin bitcoin weekly tether верификация ethereum бесплатно bitcoin roll bitcoin зарабатывать
bitcoin кликер консультации bitcoin программа tether торрент bitcoin bitcoin автоматически bitcoin vk bitcoin автоматически
kinolix bitcoin Web walletsдобыча monero So, for the first time since bits and bytes were invented, there was a way to own something digital that couldn’t be copied. This gave the digital code value. To this day, bitcoin’s value is based on the capacity of its blockchain to prevent double-spending and the creation of counterfeit coins.bitcoin блок The answer is yes. The rules which make the network of bitcoin work known as the bitcoin protocol, declare that only twenty-one million bitcoins will ever be made by miners. But, the coins can be split up into smaller parts with the smallest amount of one hundred-millionth in each bitcoin which is named as 'Satoshi' after the name of bitcoin’s founder.bitcoin pattern япония bitcoin ethereum pools bitcoin okpay bitcoin java новые bitcoin валюта monero bitcoin daily bitcoin виджет блоки bitcoin life bitcoin bitcoin обменники запуск bitcoin bitcoin сети tabtrader bitcoin mine monero casinos bitcoin The ledger continues to grow and grow as more blocks add. The blocks add up chronologically by using cryptographic techniques. Cryptographic techniques that ensure that blocks cannot reverse. Sorry hackers.