It’s been a game of shifting narratives.
Years ago people were talking about
Bitcoin and cryptocurrency as an actual
medium of exchange. You know: “This is
going to be used to pay at
restaurants and pay for food.”
The whole medium of exchange thing
didn’t happen because scalability was
the scapegoat for that. Then that
shifted and then it moved to
this whole store of value thing.
“We never said that crypto is a
thing you should actually use as a
currency. You should be using it as a
place way you know, it’s akin to gold.”
And then that didn’t really work out
because they realized that gold
actually exists and so do stocks. And so
they’re like: “Oh, okay actually it’s about
DeFi.” It’s about rebuilding banks
essentially and large financial
institutions in the blockchain.
We’re starting to get into this
comical territory where it’s like:
“Hey guys. All those financial institutions
you said you were going to completely
demolish and all the hierarchies
you said you were going to
demolish because the blockchain
would make people ‘It would give people
liberty and they’d be able to be their
own bank,’ you want to recreate all that
bad stuff inside the blockchain.” It’s
like okay. You can see where this is going.
I don’t really see the value in that.
I think that already exists. And so the
value of recreating it on a blockchain
doesn’t have a lot of benefits because
it actually makes the thing less efficient.
You know it’s centralized for a reason and that’s
because it can be super efficient.
So you have that whole side of it.
I like to think of those people
as the newcomers right.
The whole DeFi movement are typically
people that I see have come into crypto
late to the game. Probably like 2016-2017
onwards. Then you have the OGs right?
So you have a whole bunch of people
that have been around for a long time.
The Bitcoin Core developers the
Lightning folks. But then you look at
what they’re doing and they’ve kind of hunkered down in a bunker and
they’re creating these Rube
Goldberg machines for sending
transactions. It’s baffling to me.
The scaling solutions that
were coming up with like lightning and
and all of that are so so so complex.
Bitcoin is hard enough to get an average
user of a Venmo, of Apple Pay, etc to
understand the concept of public and
private case, backing up a seed phrase,
using a Bitcoin wallet. Then you have to
layer in Lightning channels and the fact
that you need to have all these
Lightning channels established, routing
needs to happen, multi-hop. From a user
experience perspective, I don’t see a way
that they can hide that efficiently
that works for end users.
It’s a little bit sad to me because I
feel like you’ve got people building
impossible chaos machines
in a basement. And they’re
cool developers, they’re very smart.
I don’t want to take away from
what Lightning and the likes of those
teams are doing. And then you have
the institution folks who are all like:
“DeFi! DeFi! Let’s turn this blockchain
into a corporate capitalist thing.”
I don’t see a sizable enough population
of people in the middle saying:
“What about using cryptocurrency to
actually transact?” It’s gone.
I hoped Ethereum was going to establish
a lot of this and do a lot of this.
But the fact Ethereum is now rebranding
as Ethereum 2.0, which a lot of people
don’t realize is it’s completely different to
Ethereum. This isn’t just a patch
to Ethereum. No it’s like: “No guys
Ethereum was a failure. Sorry we need to
completely rearchitect the whole thing.”
I think that speaks volumes to how
challenging it’s going to be to actually
just buy a cup of coffee with
cryptocurrency. So I don’t know that’s
where I stand and as an outsider I
have no financial incentives for this.
It’s not a job that I work in
and so I like to just call it as it is.
Like as a product right now I don’t see
how cryptocurrency is going to establish
market fit or adoption.