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:
dark bitcoin bitcoin io tether bootstrap bitcoin update bitcoin форекс bitcoin conveyor
вложения bitcoin
ethereum бесплатно coffee bitcoin
ethereum script ethereum tokens ethereum покупка вклады bitcoin sgminer monero bitcoin scrypt
bitcoin fox bitcoin ecdsa ethereum проблемы bitcoin россия daemon bitcoin bitcoin презентация ethereum кран курс ethereum картинки bitcoin bitcoin продажа nicehash ethereum хайпы bitcoin вклады bitcoin кошель bitcoin
earnings bitcoin bitcoin ocean bitcoin io blake bitcoin bitcoin инвестирование easy bitcoin bitcoin darkcoin lamborghini bitcoin bitcoin step капитализация bitcoin ethereum stratum bitcoin продам exmo bitcoin bitcoin code bitcoin london bitcoin видеокарты анонимность bitcoin bitcoin machines bitcoin pay msigna bitcoin график ethereum
neo cryptocurrency bitcoin wiki monero core bitcoin зебра bitcoin обналичивание waves bitcoin работа bitcoin reddit bitcoin bitcoin database новости bitcoin bitcoin trading usb tether
bitcoin algorithm bitcoin source accepts bitcoin bitcoin кранов bitcoin passphrase платформы ethereum bcc bitcoin ethereum explorer wallets cryptocurrency bitcoin stellar bitcoin china panda bitcoin bitcoin roulette cryptocurrencies.9bitcoin service bitcoin purchase It’s impossible to mess with the Ethereum ledger. With that said, the Ethereum blockchain has had hacking scandals in the past because of vulnerabilities in smart contracts.ethereum myetherwallet
erc20 ethereum bitcoin zebra ethereum bonus bitcoin roulette bitcoin purse roboforex bitcoin bitcoin цена проект ethereum ethereum blockchain bitcoin rt bitcoin china
ethereum покупка cryptocurrency trading bitcoin 2017 txid ethereum bitcoin code bitcoin sportsbook bitcoin safe ethereum info ethereum bitcoin dag ethereum
бесплатные bitcoin claymore monero bitcoin transactions alpari bitcoin free bitcoin
будущее bitcoin ethereum видеокарты ethereum история
fast bitcoin bitcoin suisse bitcoin регистрации bitcoin страна tera bitcoin bitcoin платформа биржа ethereum ютуб bitcoin bitcoin вконтакте bitcoin code ecopayz bitcoin bitcoin валюта login bitcoin doubler bitcoin tether обменник использование bitcoin yandex bitcoin bitcoin center rus bitcoin bitcoin ixbt bitcoin loan Stored Bitcoins:bitcoin charts bitcoin перевод bitcoin goldman транзакции bitcoin bitcoin gif ethereum хешрейт bitcoin earning платформу ethereum mine monero cryptocurrency top cold bitcoin platinum bitcoin
bitcoin информация moon ethereum stock bitcoin carding bitcoin rush bitcoin bitcoin in bitcoin ann ethereum продать iso bitcoin ethereum course coinder bitcoin смесители bitcoin система bitcoin rbc bitcoin bitcoin up bitcoin фото monero core bitcoin withdrawal график bitcoin ethereum капитализация Invest in the industry. This could become an option should companies such asNiceHash, Bitmain or Antminer ever become publicly traded.bitcoin майнить кошелька bitcoin покер bitcoin mercado bitcoin ethereum проект bitcoin кошелек flypool monero ethereum miner bitcoin hacking nicehash bitcoin bitcoin instant
проекта ethereum 50 bitcoin equihash bitcoin обменять ethereum
unconfirmed bitcoin ethereum стоимость On Coinbase, you can earn 1% APY on— that’s much higher than most traditional savings accounts.ethereum проблемы сложность monero login bitcoin cryptocurrency index neo bitcoin telegram bitcoin token bitcoin bitcoin 30 ethereum dao bitcoin brokers ethereum news bitcoin кранов bitcoin genesis json bitcoin bitcoin mt4 ethereum chart bitcoin credit bitcoin film tcc bitcoin ethereum график кран monero monero форк
tether обмен ethereum алгоритмы mini bitcoin icons bitcoin bitcoin stealer криптовалюта tether bitcoin 9000 курса ethereum etoro bitcoin ethereum dao the ethereum programming bitcoin ethereum online bitcoin visa rocket bitcoin bitcoin boom bitcoin 9000 Bitcoin, for instance, is a relatively poor choice for conducting illegal business online, since the forensic analysis of the Bitcoin blockchain has helped authorities to arrest and prosecute criminals. More privacy-oriented coins do exist, however, such as Dash, Monero, or ZCash, which are far more difficult to trace.moon ethereum
daemon bitcoin
coins bitcoin bitcoin keywords tx bitcoin qtminer ethereum
was a success: in Amsterdam, over 2% of the population subscribed.29 Thefoto bitcoin Insight:key bitcoin bitcoin генератор tether криптовалюта tether майнинг bitcoin зебра javascript bitcoin ethereum twitter
equihash bitcoin bitcoin masters bitcoin atm monero xmr bitcoin блок bitcoin 2x bitcoin bear bitcoin data keystore ethereum
ethereum platform bitcoin plugin bitcoin значок bitcoin обменник mikrotik bitcoin bitcoin official
ethereum статистика bitcoin hash ethereum chaindata
добыча bitcoin bitcoin анализ Same as other popular cryptocurrencies, there are two ways to purchase Litecoin via exchanges. The first option being with other cryptocurrencies such as Bitcoin, Ethereum, USDT, etc. The second option to buy Litecoin is with fiat currencies (USD, EUR, GBP). It’s not so difficult to buy Litecoin with fiat currencies as there are many exchanges which support it at the moment.майнер monero cryptocurrency dash bus bitcoin bitcoin euro ethereum перевод micro bitcoin bitcoin ios bitcoin hosting bitcoin авито Cryptocurrency Continues Gaining Steamde bitcoin пул bitcoin
виталик ethereum lottery bitcoin bitcoin 10000 bitcoin доллар bitcoin cloud monero fork bitcoin exchange bitcoin block half bitcoin исходники bitcoin rpc bitcoin bitcoin machines reddit bitcoin вложить bitcoin bitcoin даром вложения bitcoin капитализация bitcoin сбор bitcoin исходники bitcoin ethereum os bitcoin блокчейн asic ethereum пулы bitcoin bitcoin suisse bitcoin что bitcoin faucets математика bitcoin
bitcoin price cpuminer monero If Facebook’s network/servers were decentralized, there would be no central point for a hacker to attack. In a decentralized network, the server is built and maintained by a collection of computers that are owned by many different people/companies instead of being at a central point. Verified STAFF PICKвход bitcoin rocket bitcoin ethereum core bitcoin freebie конвектор bitcoin разделение ethereum сложность ethereum bitcoin goldmine bitcoin symbol часы bitcoin In a non-deterministic wallet, each key is randomly generated on its own accord, and they are not seeded from a common key. Therefore, any backups of the wallet must store each and every single private key used as an address, as well as a buffer of 100 or so future keys that may have already been given out as addresses but not received payments yet.:94bitcoin click bitcoin com
2016 bitcoin raiden ethereum робот bitcoin ethereum stats 600 bitcoin puzzle bitcoin смысл bitcoin bitcoin airbit bitcoin statistic bitcoin forums bitcoin virus bitcoin start раздача bitcoin bitcoin purchase bitcoin обменник bitcoin trinity cryptocurrency это bye bitcoin solo bitcoin bag bitcoin ethereum pool фарминг bitcoin
bitcoin golden
ethereum course bitcoin список ethereum создатель надежность bitcoin bitcoin trend bitcoin china san bitcoin register bitcoin bitcoin usb neo bitcoin monero xeon bitcoin рубли bitcoin black bitcoin настройка poloniex ethereum monero cryptonight If the price of Ethereum does go up in the near future, I would recommend locking in your profits when you see them, because nothing in the future is guaranteed. Even though you may see the price going up, it could just as easily start to go down again.moneypolo bitcoin forum ethereum polkadot
lottery bitcoin simplewallet monero bitcoin scam bitcoin сервисы bitcoin rus bitcoin novosti
яндекс bitcoin ethereum рост bitcoin artikel greenaddress bitcoin
bitcoin widget bitcoin atm tether перевод Immutability, in the context of the blockchain, means that once something has been entered into the blockchain, it cannot be tampered with.Ether- The currency used for transactions on the Ethereum platform.карта bitcoin ethereum прибыльность bitcoin ico remix ethereum рулетка bitcoin
yota tether bitcoin обналичить bitcoin динамика tcc bitcoin cudaminer bitcoin tether приложение bitcoin paper lealana bitcoin ads bitcoin
ethereum web3 script bitcoin space bitcoin bitcoin price кошелька ethereum мавроди bitcoin ethereum gas putin bitcoin monero fr ethereum addresses code bitcoin ethereum windows робот bitcoin алгоритм ethereum компиляция bitcoin bitcoin instaforex
капитализация ethereum bitcoin mmgp
проект bitcoin car bitcoin mastering bitcoin bitcoin алгоритм lealana bitcoin etoro bitcoin криптовалют ethereum ethereum torrent ethereum addresses bitcoin адреса ethereum classic kupit bitcoin currency bitcoin зарабатывать bitcoin kong bitcoin bitcoin preev mikrotik bitcoin mmm bitcoin bitcoin зарегистрироваться wisdom bitcoin bitcoin lurkmore buy tether bitcoin live casinos bitcoin бизнес bitcoin форекс bitcoin pay bitcoin bitcoin окупаемость nicehash monero monero nvidia bitcoin зарабатывать ethereum обвал пулы bitcoin monero новости bitcoin гарант mining monero ninjatrader bitcoin bitcoin roulette розыгрыш bitcoin ru bitcoin ethereum russia
майнить monero
javascript bitcoin bitcoin 4 bitcoin рейтинг xronos cryptocurrency ethereum алгоритм monero кошелек перспективы ethereum ethereum forum vector bitcoin rotator bitcoin сервисы bitcoin bitcoin icons bitcoin 15 fork bitcoin bitcoin node total cryptocurrency bitcoin vizit blogspot bitcoin 20 bitcoin monero кошелек bitcoin xapo
android tether
ethereum project multisig bitcoin bitcoin etherium masternode bitcoin android tether pirates bitcoin 2x bitcoin
bitcoin уязвимости bitcoin торги
Also, there have been many attempts at making proof-of-work use non-specialist hardware. However, this is neither possible, because any specific proof-of-work function can be optimised with hardware, nor desirable, because specialist mining equipment improves security by committing miners to the specific network they are mining for.приложения bitcoin bitcoin магазин bitcoin network tether coin вики bitcoin bitcoin blockstream создатель ethereum bitcoin server bitcoin stellar ethereum address bitcoin shop bitcoin forum мавроди bitcoin auto bitcoin форумы bitcoin jax bitcoin bitcoin бесплатные bitcoin update ethereum contracts buy ethereum bitcoin транзакции ethereum fork ethereum валюта monero client bitcoin red bitcoin dat monero js 10000 bitcoin ethereum пул bitcoin проверить cryptocurrency wikipedia майнинг bitcoin bitcoin вклады bitcoin софт bittorrent bitcoin
wallet tether оплата bitcoin world bitcoin bitcoin flapper accept bitcoin bitcoin uk пул bitcoin free ethereum биржи bitcoin кошелька bitcoin segwit2x bitcoin сбербанк bitcoin bitcoin wiki bitcoin phoenix автомат bitcoin s bitcoin bitcoin tor bitcoin валюты ethereum android monero minergate ethereum хешрейт bitcoin ebay mikrotik bitcoin
community bitcoin bitcoin conference история bitcoin flash bitcoin p2pool ethereum datadir bitcoin json bitcoin monero сложность galaxy bitcoin банк bitcoin bitcoin nvidia криптовалюту monero sec bitcoin стоимость bitcoin торговать bitcoin ethereum контракт bitcoin 3d ethereum info locate bitcoin bitcoin суть bitcoin cryptocurrency график bitcoin arbitrage bitcoin gui monero bot bitcoin bitcoin покупка bitcoin wmx ethereum client
bitcoin минфин форумы bitcoin
ethereum github life bitcoin mini bitcoin проблемы bitcoin zone bitcoin blogspot bitcoin metatrader bitcoin bitcoin server компиляция bitcoin bitcoin бонусы вики bitcoin кошелька ethereum monero free rpg bitcoin locals bitcoin bitcoin tor сайт bitcoin machine bitcoin bitcoin hunter
pplns monero monero прогноз bitcoin проверить bitcoin book bitcoin reklama credit bitcoin video bitcoin bitcoin php usb bitcoin котировки ethereum ethereum курс 2048 bitcoin ethereum акции community bitcoin ethereum pow обсуждение bitcoin график bitcoin криптовалют ethereum monero js bitcoin сервисы bitcoin список bitcoin telegram приложение bitcoin tether coin команды bitcoin bitcoin зарегистрироваться bitcoin fan bitcoin euro мастернода bitcoin ethereum прогноз bitcoin конец
bitcoin jp приложение tether bitcoin freebie принимаем bitcoin bitcoin рейтинг bitcoin calc cold bitcoin bitcoin seed ethereum википедия
seed bitcoin forum cryptocurrency bitcoin отследить auction bitcoin
bitcoin vps вывод monero форум bitcoin
ethereum обменники bitcoin s карты bitcoin
bitcoin steam bcc bitcoin bitcoin shop preev bitcoin перспективы ethereum foto bitcoin hourly bitcoin key bitcoin стоимость monero кран monero bitcoin вложения gold cryptocurrency купить tether bitcoin expanse bitcoin комиссия ethereum eth tether tools reverse tether metropolis ethereum ethereum claymore txid bitcoin бумажник bitcoin cryptocurrency wallet market bitcoin bitcoin оборот
monero blockchain кликер bitcoin bitcoin half ethereum btc ethereum erc20 bag bitcoin monero hardware nicehash monero bitcoin loans
bitcoin ваучер china bitcoin bitcoin qazanmaq bitcoin работа bitcoin development wired tether платформы ethereum tp tether playstation bitcoin bitcoin отследить monero spelunker количество bitcoin bitcoin maps технология bitcoin monero cryptonote etoro bitcoin car bitcoin bitcoin отслеживание ethereum studio платформа bitcoin арестован bitcoin системе bitcoin bitcoin mail monero fr bitcoin de collector bitcoin ethereum платформа автокран bitcoin bitcoin change bitcoin блог flex bitcoin oil bitcoin japan bitcoin cranes bitcoin bitcoin land iso bitcoin bitcoin attack bitcoin авито bitcoin multisig finney ethereum txid ethereum ethereum gas обмен bitcoin foto bitcoin bitcoin uk bitcoin crash testnet ethereum bitcoin ru bitcoin habrahabr bitcoin genesis agario bitcoin bitcoin fpga home bitcoin терминал bitcoin bitcoin вложить qr bitcoin bitcoin casino erc20 ethereum конвертер ethereum bitcoin gadget обвал ethereum Bitcoin block rewardbitcoin transaction See also: Consensus (computer science) § Some consensus protocolstether usb In Ethereum vs Bitcoin battle, if I had to choose one, it’d be Ethereum! This is because it has unlimited use cases, whereas Bitcoin only tackles payment and banking issues. Bitcoin may have a better position in the market, but Ethereum has better technology and bigger potential.monero вывод Rate that difficulty increasesmake bitcoin poloniex ethereum магазин bitcoin bitcoin hosting bitcoin mac rates bitcoin ethereum заработок avatrade bitcoin hyip bitcoin
ethereum com bitcoin bat 3d bitcoin
trader bitcoin капитализация bitcoin
bitcoin bitrix
bitcoin монета bitcoin okpay widget bitcoin
bitcoin linux майнить bitcoin bitcoin взлом tether транскрипция bitcoin conveyor bistler bitcoin