Bitcoin as a Brand not a Blockchain - Thinking About the Future of Crypto.
The latest vanity that Bitcoin is coming out with regarding its relevance is that it is a “store of value”. Yes that it true, however it is not the blockchain called Bitcoin that is the store of value but Bitcoin the brand. The code for Bitcoin is in the public domain so it is easy to make an exact clone from scratch. The chain itself is in the public domain so it is perfectly possible to take a snapshot and make a fork. The IP has no value at all because it is not protected. The name “Bitcoin” is trademarked by Mt Gox (in 2011) and an undisclosed British company (2017) so the group of people that govern, develop and mine Bitcoin don’t have rights to the name.
“So what’s stopping another chain saying “This is Bitcoin” and using exactly the same logo?”
“Nothing”
“More importantly will this “New Bitcoin” have the same value as the “real Bitcoin”?”
“No it won’t.”
“Even though it is exactly the same in every respect?”
“Still won't have the same value”
“Why not?”
“Because a group of people back it and believe it has value.”
“That sounds like the definition of fiat”
“Oh good grief so it does......However it also sounds remarkably similar to the computer brand wars of Apple, Microsoft and Android where tribes of people would cheer, defend and buy into a way of thinking.”
“That’s not sooo bad. That would make Bitcoin and Ethereum brands of digital fiat where that value is the community itself”
Except it is bad. Bitcoin and to a lesser degree Ethereum are the only two cryptos that are known by the general public and as such they ARE crypto. This limited recognition means that all altcoins are tied to the value of Bitcoin. Even more unfortunate is these are brands with only one product - A prototype with improvements strapped on or added to it. Imagine if Apple only had one product ......the 8 bit Apple 1. Now imagine that you were not allowed to have a second product to add to the Apple line but only upgrade that prototype 8 bit computer. What do you think you would be typing on right now?
Go faster stripes anyone? Ed Uthman - originally posted to Flickr as Apple I Computer, CC BY-SA 2.0
Time to be flaky and change the comparison to Stephenson’s Rocket and trains.
Any future value of Bitcoin has to go beyond being a store of value. Stephenson’s Rocket was not the first steam locomotive but it was first successful template for one. It was also a store of value. In fact it was the best store of value there is, IP.
The train was transformative, completely changing society as it linked up cities and in the US’s case coasts. People became extraordinarily rich because of it. However if no infrastructure had been built (no track or stations) and people had only rallied behind Brand that was the Rocket none of this would have happened. That store of value would have decreased as the potential was not realized.
Bitcoin is a brand which relies on the infrastructure that is supplied by the altcoins for its store of value. Without them the value of Bitcoin will evaporate.
The petty tribalism has to stop if we want to see Crypto succeed. If anything people need to get behind crypto as a whole. Brand Bitcoin has start thinking of itself as a brand within the greater crypto sector rather than just a store of value.