The President's Message

December 2019

by Ed Lynch

Established 1987

So BLOCKCHAIN AND BITCOIN are the wave of the future? If you believe the folks who are trying to sell you the latest whizbang technology that will make your life a paradise and save humanity. . .

Taking their cue from the original guys who started making up fake money based on the deposits they were holding from legitimate depositors who expected that their money would be safer in the bank vault than under their mattress or the old apple tree.

That created the financial world as we know it today. Computers became a major advance in keeping records and track of financial activities.

So now that computers and storage farms are capable of managing huge amounts of data, the next wave arrives on the heels of the financial stock market, just in time to create more fake money out of nothing more than the willingness of speculators to play the latest giant ponzi game.

Of course, none of this would be possible without the ubiquitous internet. The ability to communicate around the world at light speed has certainly changed the fundamentals and made possible things never even imagined. . . so bitcoin is supposed to provide security of data by having a million eyes on each transaction and preventing surreptitious changes that might be illegal.

Certainly, a long-awaited change to the buggy, insecure internet we endure today, but can it deliver this utopian world? It takes a lot of resources, it consumes vast quantities of processing power, which uses enormous quantities of energy. It is more complicated by orders of magnitude and not easily grasped by the average person, so once more technicians and crooks will be in charge. Not likely to be more transparent to most consumers. Have they just created a monster money-making machine or will this really deliver impenetrable computing resources that will support finance, government, and industry activity at a global scale?

As with all things that humans create there will be bad actors and good actors using this technology to their advantage to the extent they can. As with all new knowledge, those of us at the fringes will do the best we can to learn as much as we can about the risks and benefits, and hopefully learn enough to avoid becoming victims of others who may use it for malicious purposes. I'm always looking for anyone willing to come share their knowledge with us. Stay tuned.

    Ed Lynch