Begin forwarded message:

> From: byfield <[email protected]>
> Date: December 29, 2017 at 12:05:02 PM EST
> To: "Florian Cramer" <[email protected]>, "Morlock Elloi" 
> <[email protected]>
> Cc: [email protected]
> Subject: Re: <nettime> Ten years in, nobody has come up with a use for 
> blockchain
> 
> On 29 Dec 2017, at 10:01, Florian Cramer wrote:
> 
>>> The *goal* of the Bitcoin proof of concept was 'an electronic payment
>>> system based on cryptographic proof instead of trust, allowing any two
>>> willing parties to transact directly with each other without the need for a
>>> trusted third party.' So when the author of this avid-reader essay
>>> complains 'but Visa... but FDIC... but NASDAQ,' one reasonable response is:
>>> ¯\_(ツ)_/¯. The point of Bitcoin wasn't to succeed to the degree that it
>>> has, or in the way that it has.
>> 
>> Hi Ted,
>> 
>> If that had been Bitcoin's only goal, then it would have sufficed to create
>> a crypographic peer-to-peer payment system based on/supporting existing
>> currencies and their exchange rates.
>> 
>> Things got politically murky with the introduction of Bitcoin as its own
>> currency based on Hayek's and Mises' economic theory, i.e. with built-in
>> deflation and absence of political control except through owners.
> 
> Well, the difference is your addition of 'only,' as in it's 'only goal.' If I 
> say I love you, Florian, that would be special, wouldn't it? But if I say I 
> love *only* you, Florian, that's a different kettle of fish. 'Only' is one of 
> those tricky words that serves as a mule for smuggling entire ideological 
> apparatuses. 'Still' is another one: 'You *still* believe that?
> 
> As someone who's thought a lot about design, you probably understand better 
> than many what a proof of concept is: an implementation — or we'd maybe we 
> should think of it in more anthropological terms, as an *artifact* — that, 
> more or less, tests a specific proposal. How that test is constructed, and 
> the context in which it's conducted, involve a lot of artifice. Many of the 
> assumptions that shape that artifice go unstated. The questions we're left 
> with, in the case of Bitcoin, are what those assumptions were, and what they 
> might mean.
> 
> If I'd said that goal was Bitcoin's *only* goal, then I'd agree with your 
> objection, but I didn't: instead, I talked about the explicit ideological 
> beliefs that dominated the cypherpunks milieu, including their implacable 
> hostility to the state, their all but explicit aim of attacking models of 
> trust anchored in ~public institutions, the ambiguity of their use of the 
> idea of honesty, and — crucially — their interest in Vernor Vinge's novella 
> _True Names_. It didn't seem worth the effort to say they were libertarian 
> free-market extremists, because that's widely discussed. So your point is 
> right on, but it seems like more of an elaboration ('and') than an objection 
> ('but'). They didn't think talking about Hayek or Mises in the original 
> Bitcoin paper, but as you say those ideas were baked into it from the 
> beginning.
> 
> Whoever designed Bitcoin assumed that 'currency' and 'an electronic payment 
> system' were interchangeable or even identical. They (and I'm pretty sure it 
> was a group, not an individual) didn't set out to design better banknotes 
> *or* to develop a better PayPal, they set out to create something entirely 
> new that could function as either/both but wasn't *only* limited to meeting 
> those specifications.
> 
> That brings us to Morlock's point about whether Bitcoin succeeded or failed. 
> Two responses, one good, one bad. \_(ツ)_/¯.
> 
>> This reminds me of discourses on theory and practice of communism. One good, 
>> the other bad.
>> 
>> Bitcoin failed for practical/mundane reason: it ceased to be distributed 
>> long time ago (today 4 Chinese mints control 50+% of hash power), while 
>> talking heads deceivingly ignored this, and continued to proselytize the 
>> initial but long extinct 'distributed' meme. It's more centralized than US 
>> dollar.
>> 
>> PoW concentration is mandated by its technological nature and there are no 
>> signs that anything will change any time soon. Every other 'proof' 
>> introduces either benevolent coordinating authority (which is utter bs), or 
>> switches CPU for something that has not been demonstrated as 
>> concentrate-able yet because no one bothered (such as proof of space - big 
>> disks are naturally distributed ... right.)
>> 
>> There is little more to say. Bitcoin is a big lie, for many too big to be 
>> acknowledged.
>> 
>> Possible futures and promises will continue to be built on the miserably 
>> failed premise, with non-working workarounds (But maybe the next workaround 
>> will work? ... Bitcoin is just the first try, the concept is good? ... It's 
>> such great idea and must be revisited? ... etc.)
> 
> Morlock, your point about its concentration nails it, and in that sense, yes, 
> Bitcoin was a miserable failure. That structural tendency toward 
> concentration was obvious in many of the experiments that contributed to 
> Bitcoin, like the distributed cracks of RC5, which were dominated by actors 
> with immense computing power at their disposal. Cypherpunk-types loved 
> heartwarming talk about how Zapatistas and victims of sexual abuse would use 
> PGP etc, but that was just playing to the crowd: they were much more 
> concerned with systemic architectures and their baked-in biases because they 
> knew cryptography was and would remain inevitably *politically* asymmetric.
> 
> But as you may remember (if you're the same Morlock Elloi who was kicking 
> around in those circles), all that talk about crypto-anarchy was, at its 
> heart, about class. Much of what normal people think about 'class' depends on 
> the state: if there's no state, there are no classes, there are just 
> arbitrary individuals and groups who are more or less adept at navigating and 
> negotiating whatever resources are available to them. Whatever human 
> potential gets lost in the fray is just the cost of doing business — and 
> 'twas ever thus.
> 
> So...if Bitcoin has made some people fabulously wealthy, enabled new 'free 
> markets' (including dark commerce, a growing parade of ICO cons, etc), and 
> generally moved a bunch of Overton windows, do you really think some of them 
> — Tim May, for example — would be upset that it was eventually dominated by a 
> few Chinese mints rather than being equitably accessible for 
> sheeple-to-sheeple use? If all of history a single catastrophe that keeps 
> piling wreckage upon wreckage, what's a few more as long as they make you and 
> yours rich?
> 
> What engineer ever objected if his/her/their proof of concept failed on a 
> specified front but succeeded in creating a dozen new ones? It's as if the 
> Wright Brothers' plane crashed — on the moon.
> 
> Cheers,
> Ted
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