I tried to explain to my better half what Bitcoin and the blockchain were all about. My explanation was muddled, to say the least. Here are some articles that I need to re-read, if any of it’s going to sink in.
Bitcoin and cryptocurrencies – what digital money really means for our future
[T]his speculative bubble could end with a crash so severe that it destroys faith in the entire sector, driving the investors out, bankrupting the miners who’ve spent thousands or millions on single-purpose hardware that requires a high bitcoin price to turn a profit, and leaving cryptocurrencies as a technological dead-end alongside cold fusion and jetpacks. But maybe things will continue as they have done for the past five years. Cryptocurrencies’ actual use stays stable, mostly illegal, largely underground, and completely disconnected from a market price that fluctuates wildly based on the whims of a class of financial speculators with little link to the ground truth. Instability, it turns out, is an oddly stable and predictable state of affairs.
Kodak, the blockchain and cryptocurrency: how Kodak is tapping into technology
Kodak’s platform takes the whole photography and imaging industry to a new level with the features of distributed ledger technology like encryption, decentralization, immutability, transparency, and security being utilized to create a digital ledger of ‘ownership rights’ for photographers. The digital ledger will secure the work of photographers by registering work and then allowing them to license the same for use (buy/sell) within the platform. KODAKCoin will be the currency to operate on the platform and will allow participating photographers, both professional and amateur, to receive payment for licensed work almost instantly via Smart Contracts.
economics technology photography
Bitcoin’s energy usage is huge – we can’t afford to ignore it
The economic outcome of all of this is laid bare in a Credit Suisse briefing note published on Tuesday: the network as a whole will reinvest almost all the bitcoin paid out as mining rewards back into its electricity consumption. (Credit Suisse’s ballpark figure assumes that 80% of the expenses of bitcoin miners are spent on electricity).
Blockchain’s broken promises
Boosters of blockchain technology compare its early days to the early days of the Internet. But whereas the Internet quickly gave rise to email, the World Wide Web, and millions of commercial ventures, blockchain’s only application – cryptocurrencies such as Bitcoin – does not even fulfill its stated purpose.