Tom Luongo reviews the promise and pitfalls of blockchain technology. From Luongo at zerohedge.com:
2017 will likely be remembered as the Year of the Blockchain. There’s no doubt in my mind that blockchain technology is here to stay and will alter the way we organize and distribute capital within the global society.
But, at the same time, as I look around (admittedly within my own myopia) I see the explosion of blockchain projects and wonder about their usefulness. While everyone is looking for new ways to utilize the blockchain I don’t see a lot of people asking whether we should be.
Aren’t there use-cases where a simple encrypted database would be better, faster and cheaper than creating a blockchain to handle that function? I’m not sure I have an answer to that question but I think it’s one we should be asking whenever we are looking at new projects.
Because, it’s easy to say, “But it’s Blockchain!” as if that is the sole reason for a project’s existence. Case in point, any publicly listed company that adds blockchain to their name or announces some blockchain-based product to their offerings has been immediately rewarded with scads of speculative money.
How many crypto-boiler rooms are out there now trying to convince people this is coin is ‘the next big thing?” I question the motives (and nee the sanity) of John McAfee’s “Coin of the Day” gig he’s been doing on Twitter.
When you have the kind of power within the space that McAfee has, using that power responsibly is paramount. I mean, really, isn’t Jim Cramer bad enough? At least you don’t see Cramer out there boiler-rooming a bunch of thinly-traded penny stocks on CNBC.
It’s behavior like this that will invite SEC attention, if not to McAfee himself then the space in general.
Moreover, the plethora of needless hard forks of Bitcoin itself, the obvious scam-coins and the pure mania inherent in certain projects has me worried that a lot of this activity will ultimately do much more harm than good.
To continue reading: While Blockchain Exploded in 2017, Has it Grown Up?