If we are to strictly follow Bitcoin’s first principles of decentralization, then very little to no money should be made by the centers.
Bitcoin- the system, is itself the quintessential decentralized and autonomous ecosystem today. And its center is poor, because it is non-existent as an entity. All of the revenues/profits are being made at the edges of the Bitcoin network.
So, if we are to mirror Bitcoin, we need to stay true to its decentralized characteristics & properties; not just as a matter of principle, but as a matter of operational integrity.
As it evolves, decentralization is not something that is categorically there or not there. It’s not a black or white situation yet. There are different flavors, shades and degrees of decentralization. It is becoming something we aim for and reach over time, not overnight. I’ve already described the “ideal” framework for distributed autonomous organizations, and it’s not that easy getting there….
The Bitcoin vision is a global, yet decentralized money network with users at the edges of it.
So, I’m asking the question- Since Bitcoin is global and universal, why isn’t there a truly Global Bitcoin bank?
This is a tricky question, because Bitcoin’s philosophy is decentralization, and a bank is everything about central relationships. However, a global bank with no restrictions on borders or transactions would be interesting to users that want to conduct global transactions wherever they are in the world with the same ease as using a credit card.
But here’s the bad news: this fictitious Central Global Bank will never exist, because local regulatory hurdles are too high and too real. There is no existing startup or bank with the incentives to become that “UBER” bank. The hurdles that UBER is currently facing against the taxi cartels pale in comparison to the complexities and intricacies of the regulatory, compliance, and legal barriers that are intrinsic to each local financial services system around the world….
The last thing Bitcoin needed was a continued frenzy into higher valuations. I’m not going to justify Bitcoin’s recent price drop with technical trading intrinsics, because that wouldn’t be an insightful way to understand it.
Rather, there is one thing I know- Bitcoin’s price had been growing beyond its promised expectations to deliver something useful to the masses, and not just to the currency speculators. In other words, the gap was widening between its promise and its delivery.
There are really two basic things that Bitcoin needs to do:…
I’m stepping-up my writings about the blockchain and its implications. It’s a fascinating topic that marks the beginnings of a new Internet era. And I intend on continuing to explore its understanding and implications.
My plan is to publish most of it here on this blog, but I will occasionally publish elsewhere to spread the word and reach more people. In the past 3 days, 3 new original articles I wrote were posted elsewhere, and I’m posting a synopsis of each here.
But first, here’s a quick jump to 14 Bitcoin Blogs You Must Read To Achieve Bitcoin Enlightenment, compiled by Bobby Ong at Coingeckco. It’s a good list, and I’m on it, along with Vitalik Buterin, Fred Wilson, Chris Dixon, Joel Monegro and others. Too bad there are no women yet on that list….