“There’s nothing wrong with capitalism. This is a problem of crony-capitalism / corporatism. <EOF>”

That is what people will reflexively say to any analysis that discusses the role of the profit motive and wall street earnings in leading to these outcomes.

The fact that systematic actions like this to amass advantages at expense of the public happen with regularity at Facebook, Google, Apple, Microsoft, Exxon Mobil, General Motors and many other for-profit enterprises, means there may be some room to improve the economic paradigm in which these things are built. And in fact, we have just such a paradigm, and the products of it (Wikipedia, Linux, etc.) are of a completely different character. They don’t have an investor class at all, that needs to recoup their investment by extracting rents forever.

The alternative to for-profit venture funded companies owned by Wall St doesn’t have to be communism or socialism. It can be a gift economy such Science, Creative Commons, or Open Source Software and decentralized permissionless networks based around protocols like HTTP.

For example, Uber can be replaced with an open source, decentralized marketplace that doesn’t take 50% of all drivers’ revenue, but has a free market and ratings / reviews operated by the community.

But if a project is funded by venture CAPITALISTS, subsidized by money-losing unit economics through multiple rounds, and then dumped on the public in a Wall St IPO, and subsequently owned by pension funds and other pools of capital, then yes that is a quintessential example of Capitalism. And the result is that there is an investor class that will always tell Uber’s board to maintain centralized control and extract rents from the public, squeeze drivers, as well as try to hack the society around them (as in this article: secretly trick, get around the police, lobby state officials) whereas an open source decentralized system wouldn’t do any of that.

The dream of cryptocurrency was that the developers would sell the tokens to the public and make money on the primary sale, but after that, the network would belong to the public. Even any royalties that could accrue (such as on every transfer of the token) would be above-board and disclosed once, so everyone knows the deal. Sadly, rather than focusing on a “peer to peer cash system” as Satoshi’s whitepaper said, the entire space switched around 2013 to “store of value”, HODL and speculative investment. It’s actually a cop-out that happened because blockchains can’t scale well.

Bitcoin was the granddaddy and it solved the double-spend problem, but in a very brute-force way, by gathering all transactions in the world in one place every 10 mins to search for a double-spend. It’s actually even worse than that, because every transaction has to be gossipped to every miner, and all mined transactions have to be stored forever in an ever-growing history. The tech is a straightjacket but the vision is good. We do need smart contracts to replace privately-owned middlemen, but we need the smart contracts to run on a better DLT than Blockchain. There have been tons of innovation since 2008 but Bitcoin maximalists and Web2 maximalists both deride all of it, so progress depends on open-minded people who look past the grift of utility-less coins long enough to build something useful