Blog > Bitcoin

Myths, Memes & Monopolies | Exploring The World of Blockchain

Back when Kite first started looking at blockchain, we noticed immediately how the space seemed to have its own language, its own customs and importantly its own distinct identity. Myth making and idealistic hopes about decentralization, and a new world order free of censorship, were central to many early adopters. That's pretty much how we came up with Blocktribe.

So no surprise crypto and blockchain has been a truly amazing source of memes.

(Source: Twitter)

 However, little did we expect to see comments such as these.

(Source: Twitter)

 

Source: Twitter

 

And if you're on Twitter you'll know we are going heavily safe for work with these. Crypto trolling is simply vicious.

 

(Source: Twitter)

 

Now perhaps this is simply Twitter at its best-ish worse. Exploding barrels of testosterone under the cover of anonymity. But we don't think so.

 

(Source: Twitter)

I'm sure you'll agree that this is an absolutely classic killer question - why not just use the other thing that does exactly what you've just highlighted? Why put thought leaders in a position that they feel the need to socially de-proof your comments?

Greed has always walked among us but we can't help thinking how this greed consuming its consumers is part of the new incentive structure of blockchains with tokens.

In this link Rhys Lindmark discusses Ben Thompson's Aggregation Theory, and how blockchains allow startups to compete with the new tech monopolies - by quite simply financially incentivizing early adopters.

"Join our tribe and let us be rich together!"

(Source: Chris Dixon)

There are two things I love about this chart. One is of course it changes everything. The other is that early adopters are highly incentivized to push something that quite simply probably isn't very good!

And the other side of pushing something that basically works badly (literally because it's a prototype) is explaining why the competition is even worse.

Here we creep into a second debate. What is the world of crypto and blockchain going to look like in twenty years?

Hyperbitcoinization is the big daddy of blockchain myths. It is of course that Bitcoin is the one future currency in which scraggly dollars and second rate pounds get priced in.

We do not need to say this isn't going to happen because currently crypto is saying this is not going to happen.

As of now, Bitcoin is under 40% of the total market capitalization of cryptocurrencies. That says not so good things about Bitcoin, but it says absolutely amazing things about crypto.

I have personally suspected that there can be only two or three winners in the digital currency space. Clearly the fantastic economics of new coins makes this a much riskier call than when discussing Google's dominance in search or Facebook's preponderance in social media. However, let's be clear though, not for a second are we saying that Bitcoin cannot be the one true cryptoasset - merely that in 2018 it is all still up for grabs.

What excites us at blocktribe is that we think cryptocurrencies are just the tip of the iceberg. Or to follow the tribal analogies, that they are the first Siberians to arrive in North America. If this is the excitement and size we get from censorship resistant digital money transfer, what happens when companies blockchain their business models or when company ownership is secured and distributed via blockchain.