If you have even a casual interest in Bitcoin, then by now you probably know that on Friday developer Mike Hearn publicly declared the Bitcoin project a failure. And if you’ve followed Bitcoin over the years, then you also know this isn’t the first time the mourning bells are tolling. According to the scorekeepers, the count is now up to 89.
This one, however, is different from the rest. The person throwing dirt over the coffin last week was not an outsider, as has most often been the case. It was not some mainstream economist who just “doesn’t get it.” It was not a misinformed journalist fishing for clicks. It was Mike Hearn, a former Google developer, the guy who wrote the first java implementation of Bitcoin. He’s a regular presence at conferences and a tireless educator of Bitcoin novices. And his most passionate vituperations were aimed at the people he is now leaving behind. Bitcoin failed, he wrote, “because the community has failed.”
Regardless of what you think about Mike Hearn and his assessment of Bitcoin’s woes, his words must be taken seriously, if only because there are plenty of other people out there who take his words seriously—enough, in fact, to inspire a 15 percent fall in the market price of Bitcoin on the day he published his diatribe.
The bulk of Hearn’s condemnation comes down to this: Bitcoin has a technical problem. It doesn’t scale and it’s finally reaching a level of adoption where this will soon cause major disruptions in the speed and reliability of Bitcoin transactions. Some, including Hearn, say the technology has actually already reached the breaking point.
Solutions have been proposed. But the developers responsible for making the decisions about what gets incorporated into the Bitcoin Core source code, who were at first slow even to proceed with a discussion, are now mired in stalemate over which option is best.