{"id":254,"date":"2014-05-22T02:00:00","date_gmt":"2014-05-22T02:00:00","guid":{"rendered":"http:\/\/blog.holytransaction.com\/in-20-years-talk-bitcoin-like-interne\/"},"modified":"2023-01-14T01:59:07","modified_gmt":"2023-01-13T23:59:07","slug":"in-20-years-talk-bitcoin-like-internet","status":"publish","type":"post","link":"https:\/\/holytransaction.com\/blog\/2014\/05\/in-20-years-talk-bitcoin-like-internet.html","title":{"rendered":"Marc Andreessen: In 20 years, we\u2019ll talk about Bitcoin like we talk about the Internet today"},"content":{"rendered":"<div class=\"separator\" style=\"clear: both; text-align: center;\"><a style=\"margin-left: 1em; margin-right: 1em;\" href=\"https:\/\/holytransaction.com\/blog\/wp-content\/uploads\/2014\/05\/2757536235_77b9147216_b-1024x676.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/holytransaction.com\/blog\/wp-content\/uploads\/2014\/05\/2757536235_77b9147216_b-1024x676.jpg\" width=\"400\" height=\"263\" border=\"0\" \/><\/a><\/div>\n<p><em>(<a href=\"http:\/\/www.washingtonpost.com\/blogs\/the-switch\/wp\/2014\/05\/21\/marc-andreessen-in-20-years-well-talk-about-bitcoin-like-we-talk-about-the-internet-today\/\">WashingtonPost<\/a>) The investor and Web browser pioneer Marc Andreessen thinks we&#8217;ll<br \/>\nall look back in 20 years and conclude that <a href=\"https:\/\/holytransaction.com\/page\/what-is-bitcoin\">Bitcoin<\/a> was as influential a<br \/>\nplatform for innovation as the Internet itself was. He says that tech<br \/>\ncompanies think their meetings with President Obama on privacy are a<br \/>\nwaste of time. And he calls net neutrality a &#8220;lose-lose.&#8221; In a<br \/>\nwide-ranging interview with The Washington Post this week,<\/em>\u00a0<em>Andreessen<br \/>\npainted a picture of a future that&#8217;s distributed, messy and fraught<br \/>\nwith tension. Here&#8217;s an edited transcript of our conversation.<\/em><\/p>\n<p><b>Is there anything that Washington has built a wall against in terms of progress?<\/b><\/p>\n<p>Well, the big thing right now for the tech industry is the Snowden<br \/>\nrevelations, and the consequences of that for the American tech<br \/>\nindustry. Specifically, in two areas: One is that the level of trust<br \/>\nthat customers have [in] American tech companies has been seriously<br \/>\ndamaged. And that is especially \u2014 but not exclusively \u2014 true outside the<br \/>\nUnited States. Every time another revelation comes out, like the one<br \/>\nthis weekend about <a href=\"http:\/\/arstechnica.com\/tech-policy\/2014\/05\/photos-of-an-nsa-upgrade-factory-show-cisco-router-getting-implant\/\">hijacking the routers<\/a> on their way out of the country, or the one about <a href=\"http:\/\/www.washingtonpost.com\/world\/national-security\/nsa-infiltrates-links-to-yahoo-google-data-centers-worldwide-snowden-documents-say\/2013\/10\/30\/e51d661e-4166-11e3-8b74-d89d714ca4dd_story.html\">hacking into the Internet companies&#8217; backbone networks<\/a> \u2014\u00a0every time one of these shoes drops, and apparently there is just an <em>unlimited<\/em><br \/>\nnumber of shoes \u2014\u00a0every time one of these things happens, it&#8217;s a<br \/>\nserious blow to the credibility of these companies, especially outside<br \/>\nthe U.S.\u00a0And so there&#8217;s a really big, I mean very, very, very high level<br \/>\nof concern in the Valley that the American tech industry is in trouble<br \/>\noutside the U.S.<\/p>\n<p>And then, two is this balkanization of the Internet that&#8217;s happening<br \/>\nnow. As more revelations happen, more and more countries are saying:<br \/>\n&#8220;Okay, if we can&#8217;t trust the Internet, if the NSA is going to watch<br \/>\neverybody on the Internet all the time, we&#8217;re going to have to break off<br \/>\nand have our own Internet. Have our own firewalls, do what the Chinese<br \/>\ndo, have our own private Internet or whatever the hell it&#8217;s going to<br \/>\nbe.&#8221;\u00a0This issue is being used as political cover for what these countries want to do anyway.<\/p>\n<p>That brings us to, &#8220;Okay, how is the American government getting in<br \/>\nfront of this?&#8221; And the answer is, &#8220;Not even a little bit.&#8221; The view in<br \/>\nthe Valley is that the White House has hung the NSA out to dry. Just<br \/>\nlike, &#8220;You&#8217;re on your own.&#8221; And there&#8217;s basically no effective<br \/>\ncommunication right now that I&#8217;m aware of between the American<br \/>\ngovernment, especially the administration and American tech companies,<br \/>\non like, &#8220;Okay, what happens now?&#8221;<\/p>\n<p><b>There isn&#8217;t?<\/b><\/p>\n<p>No.<\/p>\n<div class=\"has-subscribe-promo borB1S borT1S marB26 padB10 padT10\"><\/div>\n<p><b>Those <a href=\"http:\/\/www.politico.com\/story\/2014\/01\/white-house-lawmakers-nsa-101852.html\">meetings that occurred<\/a>, that&#8217;s just for show?<\/b><\/p>\n<p>Yeah, people come back, and they&#8217;re like, &#8220;Nothing happened.&#8221; The<br \/>\nObama administration does not seem to have any real \u2014\u00a0they don&#8217;t seem to<br \/>\nhave a plan. They seem to be in the mode of they kinda hope that it<br \/>\ngoes away. And they hope that if they get face time with the execs they<br \/>\ncan just mollify everybody and over time, the issue will just dissipate.<br \/>\nBut I&#8217;m not aware of any substance that&#8217;s come out of those meetings.<br \/>\nI&#8217;m not aware of anybody who&#8217;s come back from those meetings saying:<br \/>\n&#8220;Okay, now there&#8217;s a plan. Now we know what&#8217;s going to happen.&#8221; It&#8217;s<br \/>\nbeen the opposite. It&#8217;s been people saying, &#8220;I don&#8217;t even know why I<br \/>\nwent.&#8221;<\/p>\n<p><b>Is there anything tech companies can do, whether on the Snowden stuff, or culturally?<\/b><\/p>\n<p>These technologies escalate the power of government, but they also<br \/>\nescalate the power of business, and they also escalate the power of<br \/>\nindividuals. So everyone&#8217;s been upgraded. And it&#8217;s a recalibration of<br \/>\nwho can do what, and everybody can do new things, so everybody&#8217;s uneasy<br \/>\nabout it. Governments are very worried about what citizens are going to<br \/>\nbe able to do with these new technologies. Citizens are very worried<br \/>\nabout what governments are going to do, and everybody&#8217;s worried about<br \/>\nwhat businesses are going to do. It&#8217;s this three-way dynamic that&#8217;s<br \/>\nplaying out. And so for any of these individual issues, it&#8217;s not just<br \/>\n&#8220;What is one leg of this triangle going to be doing?&#8221; It&#8217;s, &#8220;What are <em>all three<\/em> of them going to be doing, and how will the tension resolve itself?&#8221;<\/p>\n<p><strong>Any thoughts on <a href=\"http:\/\/www.washingtonpost.com\/business\/technology\/atandt-directv-announce-48-billion-merger\/2014\/05\/18\/62ffc980-dec1-11e3-810f-764fe508b82d_story.html\">all these mergers<\/a> that are being announced?<\/strong><\/p>\n<p>Not specifically on the mergers.<\/p>\n<p><b>Or <a href=\"http:\/\/www.washingtonpost.com\/blogs\/the-switch\/wp\/2014\/05\/15\/today-the-fcc-will-vote-on-the-future-of-the-internet-heres-everything-you-need-to-know\/\">net neutrality<\/a>?<\/b><\/p>\n<p>So, I think the net neutrality issue is very difficult. I think it&#8217;s a<br \/>\nlose-lose. It&#8217;s a good idea in theory because it basically appeals to<br \/>\nthis very powerful idea of permissionless innovation. But at the same<br \/>\ntime, I think that a pure net neutrality view is difficult to sustain if<br \/>\nyou also want to have continued investment in broadband networks. If<br \/>\nyou&#8217;re a large telco right now, you spend on the order of $20 billion a<br \/>\nyear on capex. You need to know how you&#8217;re going to get a return on that<br \/>\ninvestment. If you have these pure net neutrality rules where you can<br \/>\nnever charge a company like Netflix anything, you&#8217;re not ever going to<br \/>\nget a return on continued network investment &#8212; which means you&#8217;ll stop<br \/>\ninvesting in the network. And I would not want to be sitting here 10 or<br \/>\n20 years from now with the same broadband speeds we&#8217;re getting today. So<br \/>\nthe challenge, I think, is to accommodate both of those goals, which is<br \/>\na very difficult thing to do. And I don&#8217;t envy the FCC and the<br \/>\ncomplexity of what they&#8217;re trying to do.<\/p>\n<p>The ultimate answer would be if you had three or four or five<br \/>\nbroadband providers to every house. And I think you actually have the<br \/>\npotential for that depending on how things play out from here. You&#8217;ve<br \/>\ngot the cable companies; you&#8217;ve got the telcos. Google Fiber is<br \/>\nexpanding very fast, and I think it&#8217;s going to be a very serious<br \/>\nnationwide and maybe ultimately worldwide effort. I think that&#8217;s going<br \/>\nto be a much bigger scale in five years.<\/p>\n<p>So, you can imagine a world in which there are five competitors to<br \/>\nevery home for broadband: telcos, cable, Google Fiber, mobile carriers<br \/>\nand unlicensed spectrum. In that world, net neutrality is a much less<br \/>\ncentral issue, because if you&#8217;ve got competition, if one of your<br \/>\nproviders started to screw with you, you&#8217;d just switch to another one of<br \/>\nyour providers.<\/p>\n<p><b>There&#8217;s more and more integration between Bitcoin and the<br \/>\nfinancial services sector. But a lot of people who support Bitcoin<br \/>\nsupported it <i>because<\/i> it was sort of disconnected from the infrastructure represented by government and everything else.<\/b><\/p>\n<p>So we sort of have a theory on this, on where really disruptive<br \/>\ntechnologies come from. So the really new disruptive technologies come<br \/>\nfrom the fringe. This was true of PCs. Steve Jobs was, like, a<br \/>\nhippie.\u00a0Internet came from the fringe. No big technology company thought<br \/>\nthe Internet was going to be important, right up until basically 1995<br \/>\nor 1996.<\/p>\n<p>Bitcoin is the classic instance of that. Bitcoin didn&#8217;t come from<br \/>\nCitibank; it didn&#8217;t come from the Federal Reserve; it didn&#8217;t come from<br \/>\nVisa. It came from the fringe.\u00a0And now Bitcoin is in the early stages of<br \/>\nmainstreaming today. And the signs that it&#8217;s in the early stages of<br \/>\nmainstreaming are mainstream venture capital firms funding mainstream<br \/>\nstartups, employing mainstream engineers to build services that&#8217;ll be<br \/>\nused by mainstream people. You&#8217;ve got big companies that are not yet<br \/>\ndoing a lot with it, but are looking very seriously at it. So every big<br \/>\nbank has people that are trying to figure out what to do with Bitcoin;<br \/>\nevery big e-commerce company has people that are trying to figure out<br \/>\nBitcoin. You have mainstream regulators figuring it out; you&#8217;ve got<br \/>\npeople at the Federal Reserve, and the Treasury Department and IRS that<br \/>\nare figuring it out. At the state level, people are engaged on it. And<br \/>\nso, it&#8217;s in the early stages of mainstreaming.<\/p>\n<p><strong>It&#8217;s already happening.<\/strong><\/p>\n<p>Anybody who thinks Bitcoin makes it easier to do transactions that <em>aren&#8217;t<\/em><br \/>\ntracked by the government is 100 percent wrong. The transactions all<br \/>\nhappen in public view.\u00a0Anybody can look at the entire ledger and verify<br \/>\nwho owns what. So if you&#8217;re a law enforcement agency or an intelligence<br \/>\nagency, this is a much easier way to track the flow of money than cash.<br \/>\nSo\u00a0I think actually law enforcement and intelligence agencies are going<br \/>\nto wind up being pro-Bitcoin, and libertarians are going to wind up<br \/>\nbeing anti-Bitcoin.<\/p>\n<p><strong>For [journalists], the big challenge has been explaining what<br \/>\nBitcoin is to people. And I think we&#8217;ve always explained it as a<br \/>\ncurrency, but does that \u2014 now that people know about it in terms of a<br \/>\ncurrency, does that prevent them from [grasping Bitcoin&#8217;s full<br \/>\npotential]?<\/strong><\/p>\n<p>I have a lot of friends who are programmers. The programmers have always gone like, &#8220;Those [Bitcoin] guys are crazy.&#8221;<\/p>\n<p>And then, almost 100 percent of the time, they sit down, read the <a href=\"https:\/\/bitcoin.org\/bitcoin.pdf\">paper<\/a>,<br \/>\nread the code \u2014 it takes them a couple weeks &#8212; and they come out the<br \/>\nother side. And they&#8217;re like: &#8220;Oh my god, this is it. This is the big<br \/>\nbreakthrough. This is the thing we&#8217;ve been waiting for. He solved all<br \/>\nthe problems. Whoever he is should get the Nobel prize &#8212; he&#8217;s a genius.<br \/>\nThis is the thing! This is the distributed trust network that the<br \/>\nInternet always needed and never had.&#8221;<\/p>\n<p>So, one of the challenges is you take people who <em>aren&#8217;t<\/em><br \/>\nprofessional programmers or mathematicians and then you expect them to<br \/>\nunderstand it from a standing start. And it&#8217;s daunting. And so then it<br \/>\ngets a word attached to it, like &#8220;currency&#8221; or whatever you want to call<br \/>\nit, and then people think that it is something it isn&#8217;t. And you have a<br \/>\nsense of this, but it&#8217;s a much deeper concept than currency. It&#8217;s the<br \/>\nidea of <em>distributed trust<\/em>.<\/p>\n<p><b>So the business opportunity posed by this &#8220;distributed trust<br \/>\nnetwork&#8221; \u2014 as an investor, what do you see that you could potentially \u2014<\/b><\/p>\n<p>Hundreds or thousands of applications and companies that could get built on top.<\/p>\n<p><b>Is this, like, a billions-of-dollars kind of industry?<\/b><\/p>\n<p>Yeah.<\/p>\n<p><b>Trillions\u2026?<\/b><\/p>\n<p>Yeah! (Laughs, steeples his fingers Mr. Burns-style). Yeeeah\u2026 (Laughs) I have the haircut, I can do it.<\/p>\n<p>Digital stocks. Digital equities. Digital fundraising for companies.<br \/>\nDigital bonds. Digital contracts, digital keys, digital title, who owns<br \/>\nwhat \u2014 digital title to your house, to your car. Like for example, you<br \/>\nget a digital title on a car, attached to a digital key, where you own<br \/>\nyour car on the Bitcoin blockchain and on your smartphone. The key for<br \/>\nopening your car and starting your car is tied to that title. And if I<br \/>\nsell you my car, automatically you get title, and you get the key that<br \/>\nlets you operate the car, and it&#8217;s all digital, and it&#8217;s all unique, and<br \/>\nit can&#8217;t be cracked. You&#8217;ve got digital voting, digital contracts,<br \/>\ndigital signatures. You&#8217;ve got unique pieces of digital content. If you<br \/>\nguys wanted to know exactly who had every piece of content you ever<br \/>\nmade, you can track that. It&#8217;s this long list. And then every aspect of<br \/>\nfinancial services: insurance contracts, insurance derivatives, currency<br \/>\nexchange, remittance \u2014 on and on and on. It gives you a chance to<br \/>\nbasically go after this very broad category of online business in a new<br \/>\nway. And, by the way, if we had had this technology 20 years ago, we<br \/>\nwould&#8217;ve built it into the browser.<\/p>\n<p>E-commerce would&#8217;ve gotten built on top of this, instead of getting<br \/>\nbuilt on top of the credit card network. We knew we were missing this;<br \/>\nwe just didn&#8217;t know what it was. There is no reason on earth for anybody<br \/>\nto be on the Internet today to be typing in a credit card number to buy<br \/>\nsomething. It&#8217;s insane, because \u2014 which is why you have all these<br \/>\nsecurity problems, the Target hack and all this crazy&#8230;. And these high<br \/>\nfees, this high fraud rate. It doesn&#8217;t make sense online to have a<br \/>\npayment mechanism that requires you to hand over your credentials to<br \/>\nmake a payment. That&#8217;s just an invitation to fraud and identity theft.<br \/>\nIt&#8217;s just stupid.<\/p>\n<p>But we didn&#8217;t have the better way of doing it. So we didn&#8217;t know what<br \/>\nelse to do, and now we have the better way of doing it. Now, it&#8217;s going<br \/>\nto take time. We&#8217;re quite confident that when we&#8217;re sitting here in 20<br \/>\nyears, we&#8217;ll be talking about Bitcoin the way we talk about the Internet<br \/>\ntoday. We just need time for it to play out.<\/p>\n<p>Open your free digital wallet <a href=\"https:\/\/holytransaction.com\/app#!\/signup\">here<\/a> to store your cryptocurrencies in a safe place.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>(WashingtonPost) The investor and Web browser pioneer Marc Andreessen thinks we&#8217;ll all look back in 20 years and conclude that Bitcoin was as influential a platform for innovation as the Internet itself was. He says that tech companies think their meetings with President Obama on privacy are a waste of time. And he calls net [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,76,656,679],"tags":[764,1307,1332],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.6 (Yoast SEO v22.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Marc Andreessen: In 20 years, we\u2019ll talk about Bitcoin like we talk about the Internet today -<\/title>\n<meta name=\"description\" content=\"Uncover Bitcoin&#039;s potential to revolutionize money, value &amp; trust in this article by tech pioneer Marc Andreessen. 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