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This post originally appeared on ZeMing M. Gao’s website, and we republished with permission from the author. Read the full piece here.
What I have feared is happening: President-elect Donald Trump will meet privately with Coinbase (NASDAQ: COIN) CEO Brian Armstrong and is expected to discuss appointments.
One of the biggest worries I have about the incoming administration is that it is gaining a misunderstanding of the nature of the crypto world and starting to trust wrong sources and theories that promulgate crypto scams and lead to the worst kind of centralization (the opposite of what is being promised). This is happening when the U.S. is given a historical opportunity to take advantage of blockchain innovation with true leadership.
The level of obfuscation in the crypto world against truth is unprecedented. It’s sad to see President Trump and his team being sucked into darkness while mistakenly believing they have received enlightenment. Trump’s previous views of crypto were simplistic but intuitive and in the right direction. But that has changed recently.
Now, we are faced with a strange scene in the political arena in the U.S.: Democrats resist crypto for the wrong reason, while Republicans promote it for the wrong reason. Neither side understands blockchain as a technology and an economic/financial/legal system, and both confuse it for crypto.
The kind of centralization that would result from the adoption of the wrong kind of crypto projects and policies will be worse than the centralized control by the government feared by many, because it will also lead to centralized controls by private parties that are hidden and even more nefarious than government.
Lack of scalability has resulted in the fragmentation of blockchains with a false appearance of decentralization and, at the same time, the centralization of exchanges with a false appearance of decentralized ownership.
And it’s worse than just centralization. If a technology produces assets that have real economic and social values, centralization is a derivative problem. However, when the so-called technology promotes only Ponzi schemes and produces no real value, it is rotten at the core, whether centralized or decentralized.
This is what happened: People hijacked Bitcoin and turned away from true solutions to pursue their own coins and get-rich-quick schemes, and further misled the world to believe they are providing blockchain solutions.
All this happened when Satoshi’s original Bitcoin provided near-perfect solutions years ago, and teams around the world have subsequently perfected the system with Teranode that has already attained transactions per second (TPS) over one million with fee/tx lower than $0.00001 while promising unbounded scalability. (Evidently, the true Bitcoin is not BTC that is promoted by the crypto world. BTC is a perverted version of Bitcoin. It can do no more than 7 TPS and costs $10/tx.)
Due to the extraordinary importance of the matter, I wrote a book to explain the truth and expose the lies. BIT & COIN: Merging Digitality and Physicality (bitandcoin.net).
Volume I
Digital Humanity’s Truth Layer Blockchain
The New Internet, its Authenticity Layer, and Applications
Volume II
Bitcoin, Blockchain, and Beyond
Essays of Science, Economics, Law, Ethics, and Controversies
Watch: Reviving the true value of blockchain—utility
English (US) · 