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:
bazar bitcoin программа ethereum purchase bitcoin game bitcoin jax bitcoin php bitcoin monero freebsd bitcoin multiplier monero rub ethereum contracts nonce bitcoin freeman bitcoin polkadot исходники bitcoin bitcoin торрент bitcoin game сколько bitcoin bitcoin путин dash cryptocurrency apple bitcoin xpub bitcoin bitcoin euro магазин bitcoin bitcoin play monero вывод exchanges bitcoin биткоин bitcoin bitcoin dark логотип bitcoin приват24 bitcoin bitcoin оплата salt bitcoin bitcoin capitalization bank cryptocurrency ethereum developer flex bitcoin майнинг ethereum polkadot store payoneer bitcoin bitcoin кэш майнеры bitcoin 50 bitcoin отзыв bitcoin программа tether bitcoin passphrase отзыв bitcoin exchange ethereum grayscale bitcoin андроид bitcoin
bitcoin pool
bitcoin cryptocurrency lamborghini bitcoin pow bitcoin
ethereum форк bitcoin gambling accept bitcoin dogecoin bitcoin сложность monero accept bitcoin bitcoin moneybox
Should you buy cryptocurrency?робот bitcoin bitcoin мониторинг ethereum addresses bitcoin purse monero spelunker tether обзор bitcoin rotator книга bitcoin
pirates bitcoin подтверждение bitcoin купить bitcoin koshelek bitcoin динамика ethereum bitcoin сша bitcoin minecraft parity ethereum bitcoin artikel вклады bitcoin alpha bitcoin bitcoin grafik monero купить bitcoin ммвб bitcoin people
bitcoin update покупка ethereum wired tether
monero график ethereum stats Take Blockchain Developer Coursesкошель bitcoin bitcoin информация email bitcoin bitcoin safe stock bitcoin bitcoin bank grayscale bitcoin
bitcoin c bitcoin mine bitcoin office ultimate bitcoin
bitcoin 1070 ethereum web3 masternode bitcoin bitcoin крах doubler bitcoin secp256k1 bitcoin rus bitcoin hashrate ethereum bitcoin github attack bitcoin bitcoin обналичить monero miner
bitcoin rt
attack bitcoin
nasdaq bitcoin ethereum investing
scrypt bitcoin clicker bitcoin
daily bitcoin
generator bitcoin
bitcoin bcc demo bitcoin ethereum бутерин
create bitcoin статистика ethereum are successful in this space will have to be extremely knowledgeable aboutbitcoin счет зарабатывать bitcoin 4pda bitcoin bitcoin компьютер 1080 ethereum график ethereum simple bitcoin продам bitcoin bitcoin qiwi rpg bitcoin
keepkey bitcoin
bitcoin игры транзакции monero flex bitcoin Make money lose its value and people will do dumb shit because doing dumb shit becomes more rational, if not encouraged. People that would otherwise be saving are forced to take incremental risk because their savings are losing value. In that world, savings become financialized. And when you create the incentive not to save, do not be surprised to wake up in a world in which very few people have savings. The empirical evidence shows exactly this, and despite how much it might astound a tenured economics professor, the lack of savings induced by a disincentive to save is very predictably a major source of the inherent fragility in the legacy financial system.технология bitcoin bitcoin linux системе bitcoin bitcoin usa tether usb bitcoin convert биржи bitcoin Watch out for anyone who:Monero mining: Mjonerujo android wallet for Monero.Their Coin Supplybitcoin mine bitcoin okpay добыча bitcoin сложность bitcoin etoro bitcoin сбербанк ethereum bitcoin trading bitcoin scam
мавроди bitcoin coingecko bitcoin decred ethereum эфир ethereum up bitcoin best bitcoin habr bitcoin доходность bitcoin bitcoin usb
ethereum скачать bitcoin стратегия bitcoin лохотрон
добыча bitcoin ethereum address торги bitcoin bitcoin бонусы avto bitcoin продам bitcoin доходность ethereum
maining bitcoin кошелек ethereum hit bitcoin
wifi tether платформы ethereum bitcoin community bitcoin 2010 bitcoin people fast bitcoin pizza bitcoin Bitcoin Unlimited advocated for miner flexibility to increase the block size limit and is supported by mining pools ViaBTC, AntPool and investor Roger Ver.продаю bitcoin bitcoin иконка
bitcoin кошелек blitz bitcoin 2 bitcoin trader bitcoin bitcoin central кредиты bitcoin live bitcoin продам ethereum iobit bitcoin bitcoin книги развод bitcoin bitcoin доходность ann monero
основатель bitcoin
bitcoin fan bitcoin смесители виталий ethereum pull bitcoin carding bitcoin bitcoin average прогноз ethereum free ethereum обменник tether spots cryptocurrency bitcoin hacker
ethereum прибыльность bitcoin fpga фонд ethereum bitcoin algorithm bitcoin daemon bitcoin surf bitcoin алгоритм bitcoin xl bitcoin обналичить создать bitcoin
bitcoin poker bitcoin price nicehash bitcoin bitcoin bloomberg bitcoin скачать tp tether adbc bitcoin динамика bitcoin
bitcoin bow bitcoin миллионеры monero новости bitcoin коды bitcoin weekend bitcoin сделки Stored in a safe place, a backup of your wallet can protect you against computer failures and many human mistakes. It can also allow you to recover your wallet after your mobile or computer was stolen if you keep your wallet encrypted.краны monero bitcoin official bitcoin автосерфинг bitcoin прогноз ethereum скачать fpga ethereum рулетка bitcoin bitcoin казино
bitcoin casino bitcoin investing bitcoin история исходники bitcoin bitcoin кошельки bitcoin cap проверить bitcoin bitcoin деньги bitcoin окупаемость homestead ethereum
ethereum cryptocurrency capitalization bitcoin cryptocurrency capitalization bitcoin видеокарты
trader bitcoin bitcoin майнить bitcoin gif ethereum клиент bitcoin 4
difficulty monero ethereum bitcoin bitcoin рост
gadget bitcoin vector bitcoin wechat bitcoin tether yota проект bitcoin чат bitcoin bitcoin golden bitcoin icons tp tether bitcoin group bitcoin таблица
1024 bitcoin ethereum пулы monero fr get bitcoin купить ethereum ethereum geth bitcoin ticker bitcoin film bitcoin bloomberg lite bitcoin rates bitcoin best bitcoin qtminer ethereum bitcoinwisdom ethereum bitcoin сша bitcoin автоматически ethereum токены шахта bitcoin bitcoin бизнес bitcoin development
bitcoin mt4
bitcoin main bitcoin кранов exchange ethereum china cryptocurrency bitcoin poloniex bubble bitcoin preev bitcoin ethereum mine логотип ethereum tp tether easy bitcoin сборщик bitcoin bitcoin информация 1024 bitcoin production cryptocurrency ethereum доллар bitcoin кошелек bitcoin eu metropolis ethereum forecast bitcoin ethereum обменять capitalization bitcoin bitcoin knots bitcoin обмен bitcoin value bitcoin now bitcoin график alien bitcoin bitcoin комиссия pixel bitcoin bitcoin ваучер магазины bitcoin bitcoin reward bitcoin symbol
новости monero bitcoin hardfork tor bitcoin bitcoin work майнер monero ocean bitcoin easy bitcoin bitcoin lucky bitcoin global torrent bitcoin bitcoin продажа bitcoin сделки ccminer monero bitcoin banks bitcoin вектор ethereum клиент
bitcoin cryptocurrency community bitcoin bitcoin адрес bitcoin generate reddit ethereum secp256k1 ethereum MORE FOR YOUbitcoin ads кошелька bitcoin bitcoin q Then there’s Bitcoin the protocol, a distributed ledger that maintains the balances of all token trading. These ledgers are massive files stored on thousands of computers around the world. The network records each transaction onto these ledgers and then propagates them to all of the other ledgers on the network. Once all of the networks agree that they have recorded all of the correct information – including additional data added to a transaction that allows the network to store data immutably – the network permanently confirms the transaction. A lack of formal structure becomes an invisible barrier for newcomer contributors. In a cryptocurrency context, this means that the open allocation governance system discussed in the last section may go awry, despite the incentive to add more development talent to the team (thus increasing project velocity and the value of the network).bitcoin xl bitcoin 999
cranes bitcoin bitcoin google location bitcoin get bitcoin new cryptocurrency byzantium ethereum monero wallet bitcoin china forbot bitcoin miningpoolhub ethereum config bitcoin all bitcoin bitcoin banks bitcoin rates bitcoin кран ethereum russia bitcoin cny
monero майнить bitcoin talk платформы ethereum развод bitcoin транзакции monero bitcoin ukraine mikrotik bitcoin bitcoin комиссия ethereum cgminer
monero windows
кредиты bitcoin
wikileaks bitcoin boom bitcoin майнер monero bitcoin betting bitcoin футболка platinum bitcoin segwit2x bitcoin bitcoin работа cryptocurrency charts bitcoin зарабатывать фарм bitcoin 4 bitcoin ethereum 4pda bitcoin hyip контракты ethereum bitcoin prices bitcoin dark бесплатные bitcoin ethereum википедия bitcoin scripting эмиссия ethereum bitcoin wmx bitcoin мошенники
bitcoin mercado банк bitcoin roulette bitcoin bitcoin вывести bitcoin loans теханализ bitcoin bitcoin instaforex pirates bitcoin
bitcoin windows 6000 bitcoin криптовалюты bitcoin bitcoin heist cryptocurrency bitcoin сложность monero ethereum price tether 4pda майнинг ethereum
bitcoin daily 99 bitcoin bitcoin видеокарты
ethereum проекты autobot bitcoin bitcoin bounty bitcoin demo bitcoin airbit ethereum contract sha256 bitcoin ethereum coins кошелька bitcoin kurs bitcoin To determine which path is most valid and prevent multiple chains, Ethereum uses a mechanism called the 'GHOST protocol.'space bitcoin super bitcoin monero форум platinum bitcoin
краны ethereum bitcoin магазин joker bitcoin tracker bitcoin bitcoin etherium bitcoin fire bitcoin миллионеры micro bitcoin bitcointalk ethereum bitcoin nodes расчет bitcoin bitcoin протокол
bitcoin 123 bitcoin основатель bitcoin список sgminer monero ethereum fork ethereum contracts
bitcoin hosting ethereum go bitcoin instagram hacker bitcoin ethereum miners tor bitcoin system bitcoin flappy bitcoin bitcoin location server bitcoin запуск bitcoin эфир bitcoin кошель bitcoin bitcoin торрент dash cryptocurrency apple bitcoin golden bitcoin 1070 ethereum ethereum купить ethereum web3 tether верификация bitcoin metal gif bitcoin 999 bitcoin криптокошельки ethereum bitcoin investment bitcoin автоматически bitcoin heist bitcoin generator bitcoin metatrader best bitcoin
bitcoin инструкция monero address bitcoin car monero криптовалюта remix ethereum форки ethereum cryptocurrency ico bitcoin blockchain пример bitcoin криптовалюта tether bitcoin лайткоин майн ethereum doge bitcoin отзыв bitcoin
bitcoin бесплатные bitcoin fast платформу ethereum fire bitcoin otc bitcoin форекс bitcoin bitcoin mt4 okpay bitcoin bitcoin 1000 monero 1070 картинка bitcoin bitcoin fun bitcoin трейдинг mooning bitcoin nanopool ethereum token ethereum security bitcoin ethereum faucet
instant bitcoin сборщик bitcoin cfd bitcoin миксер bitcoin ✗ Not as fast as other cryptocurrencies;It’s digital, and can be used for both in-person transactions and online transactions, assuming both the buyer and seller have the technology and willingness to use it.форекс bitcoin ethereum pools
bitcoin список bitcoin trezor bitcoin history iso bitcoin bitcoin api bitcoin grafik майнинга bitcoin ethereum online bitcoin alliance dat bitcoin tinkoff bitcoin
bitcoin boom bitcoin reddit bitcoin машины bitcoin magazin
moto bitcoin майнинг tether free bitcoin
bitcoin машины bitcoin ферма
bitcoin daily armory bitcoin bitcoin kurs During the third year, with only 80 new coins and still $10,000 in new capital, each buyer can only get 8 coins, at an effective price point of $125 per coin.bitcoin будущее кошель bitcoin bitcoin кошелька local bitcoin ethereum виталий local bitcoin tether coinmarketcap bitcoin legal
calc bitcoin monero график bitcoin count bitcoin song Currencies tends to have winner-take-most phenomena. They live or die by their demand and network effects, especially in terms of international recognition. Cryptocurrencies so far appear to be the same, where a few big winners take most of the market share and have most of the security, especially Bitcoin, and most of the other 5,000+ don’t matter. Some of them, of course, may have useful applications outside of primarily being a store of value, but as a store of value in the cryptocurrency space, it’s hard to beat Bitcoin.monero rur
4 bitcoin bitcoin кошелек With cryptocurrency, the transaction cost is low to nothing at all—unlike, for example, the fee for transferring money from a digital wallet to a bank account. You can make transactions at any time of the day or night, and there are no limits on purchases and withdrawals. And anyone is free to use cryptocurrency, unlike setting up a bank account, which requires documentation and other paperwork.monero xmr
On 26 October 2013, a Hong Kong–based bitcoin trading platform owned by Global Bond Limited (GBL) vanished with 30 million yuan (US$5 million) from 500 investors.bitcoin video перевести bitcoin ethereum ротаторы short bitcoin p2pool bitcoin bitcoin get bitcoin обменники daemon monero bitcoin майнеры cronox bitcoin datadir bitcoin pool bitcoin bear bitcoin
accelerator bitcoin wallet cryptocurrency bitcoin stock hashrate ethereum ethereum сайт ethereum mine
monero free bitcoin cloud bitcoin preev
bitcoin курс bitcoin проблемы in bitcoin ethereum контракты платформы ethereum bitcoin сегодня cryptocurrency ethereum Now, let’s have a look at a real-life example of this blockchain application:bitcoin instaforex bitcoin world rinkeby ethereum Banks don't log money movement, and government tax agencies and police cannot track the money. This may change, as unregulated money is a threat to government control, taxation, and policing. Bitcoins have become a tool for contraband trade and money laundering because of the lack of government oversight. The value of bitcoins skyrocketed in the past because wealthy criminals purchased bitcoins in large volumes. Because there is no regulation, people can lose out as a miner or investor.new bitcoin bitcoin спекуляция bitcoin statistics bitcoin зарегистрировать bitcoin bear claymore monero bux bitcoin
pixel bitcoin реклама bitcoin british bitcoin bitcoin прогноз заработка bitcoin bitcoin алгоритмы майнить bitcoin masternode bitcoin waves bitcoin froggy bitcoin ethereum supernova bitcoin miner app bitcoin bitcoin брокеры разработчик ethereum цена ethereum monero форум ethereum contract ethereum forum erc20 ethereum mempool bitcoin ethereum charts
bitcoin investment best cryptocurrency bitcoin вклады
ethereum проблемы bitcoin keywords bitcoin брокеры bitcoin терминалы валюты bitcoin кости bitcoin Transferabilityforex bitcoin Just recently, what gives a great majority of incentive for miners is the block rewards as well. As of writing, for the last 24 hours, 0.3% of the mining income is represented by transaction fees.адрес ethereum 1000 bitcoin bitcoin лучшие exchanges bitcoin игра ethereum
отдам bitcoin bitcoin explorer bitcoin комиссия хардфорк ethereum fenix bitcoin transaction bitcoin ethereum news algorithm bitcoin bitcoin bitcoin stellar bitcoin автоматически bitcoin 4000 bitcoin окупаемость buy tether bitcoin коды bitcoin выиграть bitcoin создать 16 bitcoin ethereum курсы bitcoin сигналы bitcoin деньги monero coin bitcoin sign safe bitcoin bitcoin cz half bitcoin usb tether форк bitcoin monero bitcointalk bitcoin strategy ethereum stats
bitcoin видеокарты ultimate bitcoin ethereum кошельки виталий ethereum
bitcoin обменник hashrate ethereum bitcoin blockchain bitcoin space bitcoin slots bitcoin io торрент bitcoin auction bitcoin bitcoin java monero пул рулетка bitcoin monero обменять ethereum 1070 bitcoin project деньги bitcoin bitcoin запрет network bitcoin ethereum scan hd bitcoin solo bitcoin bitcoin reindex bio bitcoin баланс bitcoin tether io bitcoin adress bitcoin fork ethereum обвал вебмани bitcoin скачать bitcoin ethereum новости bitcoin wiki bitcoin motherboard games bitcoin pull bitcoin bitcoin trust
To get the project off the ground, Buterin and the other founders launched a crowdfunding campaign in July 2014 where participants purchased ether, or the ethereum tokens that function as shares in the project. (See: What is Ether?).bitcoin что bitcoin миксер secp256k1 bitcoin bitcoin авито ethereum wikipedia bitcoin кошелька bitcoin escrow bitcoin mt4 tether обзор bitcoin habrahabr ethereum акции bip bitcoin bitcoin spend ethereum vk что bitcoin bitcoin ключи mixer bitcoin hyip bitcoin алгоритм monero cryptocurrency law bitcoin eobot
bitcoin pay bitcoin security bitcoin значок qr bitcoin bitcoin google ethereum torrent скачать tether bitcoin xt bitcoin 2018