OPINION:
BLOCKCHAIN REVOLUTION: HOW THE TECHNOLOGY BEHIND BITCOIN IS CHANGING MONEY, BUSINESS, AND THE WORLD
By Don Tapscott, Alex Tapscott
Portfolio, $30, 384 pages
DIGITAL GOLD: BITCOIN AND THE INSIDE STORY OF THE MISFITS AND MILLIONAIRES TRYING TO REINVENT MONEY
By Nathaniel Popper
Harper Paperbacks, $15.99, 416 pages
Election update: While world stock markets gyrated after the election of Donald Trump, the price of Bitcoin charged steadily upward. Meanwhile, Forrester Research predicts a cybercrisis in the first 100 days of the Trump administration. Whether or not this holds true, cybersecurity will undoubtably be a top priority in the new administration. This bodes well for Bitcoin and its underlying technology, Blockchain, which offer unprecedented cybersecurity. If you’ve wondered what all the fuss is about with Bitcoin and Blockchain, now might be a good time to add these two books to your holiday reading schedule.
Silicon Valley is Earthquake Country. Fittingly, it’s also the epicenter of technological change. As new technologies build tension in the existing order, the fault line eventually slips, and shock waves reverberate through the worlds of business, government and society. The latest rumblings beneath the dry Silicon Valley soil portend a tectonic shift that will cause massive disruption in all of these worlds. It’s called Blockchain, the technology behind Bitcoin.
Blockchain has been called “The Ledger of Everything.” Basically, it is an immutable record of every transaction recorded on it. Using Blockchain-based cryptocurrencies such as Bitcoin, transactions can be conducted virtually instantly, completely bypassing the byzantine networks of banks, credit card companies and money transfer services. Naturally, this has captured the attention of institutions that currently provide such services. It has also fired up a legion of software entrepreneurs developing Blockchain-based applications.
The rallying cry for these developers is “disruption,” a term roughly derived from Joseph Schumpeter’s “creative destruction,” which holds that old systems and infrastructure must be destroyed to make way for the new. While Donald Trump has spoken little about Bitcoin publicly, many feel that the disruption of a Trump presidency will help drive its widespread adoption.
The Silicon Valley PR machine issues daily announcements of “world-changing” technologies. Superlatives and catch phrases are the Lingua Franca of the region. But when none other than Marc Andreessen, cofounder of Netscape, calls Blockchain “one of the most fundamental inventions in the history of computer science,” it may be worth a closer look.
“Blockchain Revolution” by Don and Alex Tapscott and “Digital Gold” by Nathaniel Popper provide an excellent introduction for anyone who wants to learn more about Bitcoin and Blockchain. “Blockchain Revolution” is at once a primer, a pep rally, and a cautionary tale. The authors are true believers, but their enthusiasm is backed by detailed research and footnotes. The book lays out a categorized account of how Blockchain will affect different industries.
“Blockchain Revolution” targets the educated layperson, but at times the technological density can be daunting. The authors attempt to ease the reader’s mind by sprinkling the text with humorous anecdotes and pop-culture references (Part I: “Say you want a Revolution”). But like the “for Dummies” books, the glib witticisms can make you feel even dumber if you fail to grasp the subject.
And make no mistake, “Blockchain Revolution” is not for dummies. The sheer breadth of issues that the authors address is both mind-expanding and mind-numbing. Yet it’s organized in a way that is highly readable.
“Digital Gold,” a book that was first published last year, is penned by New York Times reporter Nathaniel Popper. The book’s subtitle hints at the fun to be had inside: “Bitcoin and the inside story of the misfits and millionaires trying to reinvent money.” It’s a wild ride, with the cast of characters expanding from solitary coders working in basements to venture capitalists, hedge fund managers, and Washington D.C. power players.
Beginning as a David and Goliath tale of “Geeks vs. the Establishment,” the plot takes a twist when government, regulators and law enforcement begin to show interest in Bitcoin and Blockchain. Testifying before the U.S. Senate, Patrick Murck of the Bitcoin Foundation expected a hostile grilling. To practically everyone’s surprise, the hearing was, as The Washington Post described it, “A Bitcoin Lovefest.” None other than Federal Reserve Chair Ben Bernanke praised Bitcoin’s promise as a “faster, more secure, and more efficient payment system.”
“Digital Gold” reads like a novel you can’t put down — ideal for reading by the fire with your dog at your feet. “Blockchain Revolution” is best read with a highlighter in hand and a large coffee with a double-shot of espresso.
Whether the election left you weeping or cheering, it is clear that a Trump administration will bring about major change. “Blockchain Revolution” and “Digital Gold” provide information and strategies that can help you prepare for that change.
• Scott Pettersen is a freelance writer specializing in financial services, cryptocurrencies and business ethics.
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