Earn.com acquisition signals more Bitcoin-industry consolidation, like the early days of the oil business
News & Commentary
Since last year's rapid price increase, cryptocurrency exchanges have become well-capitalized enough to begin buying up adjacent businesses. As gateways between traditional assets and novel ones, exchanges are profitable during the capital-formation phase of a new industry--much like the oil industry in late 1800s, where companies like Standard Oil used early profits to quickly consolidate distribution networks.
"Most importantly, will it perform as an investment? If it does, it would make for a key milestone for Coinbase — an acquisition of a going concern that continued to thrive under new management. That would have ripple effects in the coming years as other teams consider exiting to what looks like it will be the industry’s first IPO."
Bitcoin faucets played an important early role in distributing cryptocurrency to new holders. Enabling non-crypto holders to own cryptocurrency without having to go through fiat onramps is a fantastic way to spread adoption. https://t.co/nsXHgotHVq— Ari Paul (@AriDavidPaul) April 16, 2018
@balajis I'm a fan of yours, and certainly of Bitcoin. But ... this product isn't going to work. I strongly suggest you consider pivoting— Chris DeRose (@derose) September 22, 2015
andreessen horowtiz guy starts company, a16z invests in it, the company raises $120 million, pivots, gets acquihired by another a16z portfolio company and the founder becomes CTO https://t.co/5cXh3A11W4— Matthew Zeitlin (@MattZeitlin) April 16, 2018
"Early-stage projects are fraught with risk across every conceivable axis and need the freedom to be able to quickly pivot and iterate. This is only possible with some form of centralization. Ethereum, ZCash, and even Bitcoin (by way of obscurity) were much less decentralized when they were first designed."
Technical & Updates
It's because people *prefer* centralized pools. Lower effort, better UX.— Philip Daian (@phildaian) April 10, 2018
Soon-to-be PoS currencies, take note, this will be a *major centralization vector* IMO, and saying "it's OK we'll have decentralized stake pools" won't quite be enough (analogues to PoW are clear). https://t.co/sUuLv6vLFd
"The aftermath of the Monero hard fork provides an excellent example of why governance is such an important theme for blockchains. Sustained chain splits resulting from (scheduled) hard forks can endanger the success of the original project. Blockchain governance has the potential to streamline the process of updating the consensus rules while minimizing the risk of sustained hard forks."
Guide to iOS estimated passcode cracking times (assumes random decimal passcode + an exploit that breaks SEP throttling):— Matthew Green (@matthew_d_green) April 16, 2018
4 digits: ~13min worst (~6.5avg)
6 digits: ~22.2hrs worst (~11.1avg)
8 digits: ~92.5days worst (~46avg)
10 digits: ~9259days worst (~4629avg)