The Slow Death of the Firm
Nick Tomaino
1.8K15

minimizing transaction costs, aggregating capital and mindshare, and providing job security for contributors

Firstly, Bitcoin transaction costs are way higher than alternative payment mechanisms. Remittances are cheaper with wires (see TransferWise), microtransactions are cheaper off-blockchain (internal accounting), and paying for goods and services is cheaper with VISA.

Second, Bitcoin does not “aggregate capital”. The capital is meant to be decentralized amongst users, unlike the firm.

Thirdly, contributors to Bitcoin do not have job security unless they join a firm (think Blockstream, Chaincode Labs, etc.). I don’t know anyone contributing to bitcoin who has not already made a fortune buying very early and thus just retiring and working on Bitcoin on the side. Everyone else is working for a firm. This means no new contributor can have job security unless they join a firm.

Traditional firms will transition to decentralized organizations. We’re already seeing this happen slowly. Brave and Kik are two early examples of firms that have tokenized and Dust and YouNow are two firms that are in the process of tokenizing

The fact that Kik and Brave received millions of dollars in funding has nothing to do with becoming “decentralized”. They just found a way to raise money without registering with the SEC.

What makes you think Brave is becoming a “decentralized organization” and more importantly: what do you think this even means?

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