“Bad dreamer, what’s your name?
Looks like we’re ridin’ on the same train.
Looks as though there’ll be more pain.
There’s gonna be a Showdown.”
– Electric Light Orchestra
This article addresses misperceptions growing around the newly celebrated fad in financial circles, blockchain. Bitcoin/blockchain is a technology with the potential to revolutionize transactions and perhaps even accounting. I will begin by putting front and center before you the most important thing to remember in understanding Bitcoin/blockchain.
There is only one blockchain, and Bitcoin is used in every single transaction on the only blockchain.
When you read almost any other discussion of Bitcoin or blockchain written for laymen, you will think that Bitcoin and blockchain are separable. They are not.
To explain: Blockchain and Bitcoin are components of a single transaction technology. Investopedia provides a surprisingly accurate definition of the pair:
“A blockchain is a public ledger of all Bitcoin transactions that have ever been executed. It is constantly growing as ‘completed’ blocks are added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order.” (Author’s note: Even here there is spin. The misleading first