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Ad blockers and 21 Inc: a major business opportunity

The 21 Bitcoin computer

Over the past days I have been closely following the ad blocking discussion. For those who did not pay too much attention to it, the issue is that Apple released iOS9 and that this version allows ad blocking apps. That means that by installing one of these apps you won’t see ads anymore.

Great, right? Well, maybe yes, because it makes the user experience better, but also maybe no, because ads are the main revenue driver for most websites on the Internet. Within a day the top paid apps in the app store were ad blocking apps, so there clearly was a big need for it.

I don’t want to go into too much detail, but it means that many websites will need a different business model if they want to survive. The current model where you are often bombarded with ads that you do not want to see or that load much more slowly than the site itself is not working. It’s the ad industries fault, because they assumed consumers could not avoid the ads. With more relevant ads, that are less annoying, load faster and don’t block part of the site, I believe people would be less inclined to download ad blockers.

I never put any ads on this blog (and never will), nor did I ever accept any paid posts, because I blog for fun and make my money in other ways. Indirectly this blog has earned me a lot more than I could have ever made with ads, however. That’s my business model, but obviously that doesn’t work for sites with high overheads.

Some websites charge monthly fees, which is a model I don’t believe in. The only paid subscription that I have is the New York Times, because their content is unique and far superior to that of most other newspaper websites. But I don’t want to pay a monthly fee for 10 to 20 blogs and media sites, so earlier this year I deleted all the ones that charge for content from my RSS reader.

I believe in a model like Blendle, where people pay for content on a per article basis. However, the model should be seamless (no ‘pay now’ button), ubiquitous (it should work on any paid website, not just a few) and you should pay less if you don’t finish reading the article. Next to that an article should be cheap, I think the Blendle articles (at on average $0.20 per article) are still too expensive.

I have talked about this for about 8 years already, but so far I have not found the business model that I am looking for. Partly because big companies like Apple (iTunes for News?) and Microsoft (Skype with its pre-paid credit would be a perfect candidate) didn’t see the market or did not want to enter it, or in the case of Google because it would hurt their main business: advertising.

But the main reason the model does not exist yet is that there was no good machine-to-machine payment tool that can automatically send and receive money. Until now that is, because yesterday 21 Inc. released the data for its upcoming “21 bitcoin computer“. This Raspberry Pi with an added black box is the first tool that can make machines talk to each other and exchange value (=bitcoin) between them. Each 21 bitcoin computer contains the full blockchain and mines bitcoin as well when you use it.

The 21 bitcoin computer is 21 Inc.’s first product, but there will be many more products to come. Their vision is that everybody will in the future own one of their devices and will automatically mine small amounts of bitcoin every day. This money can then be spent automatically on products developed with the 21 bitcoin computer.

The first use case I see for this right now is automatically paying for web content. You read an article on say The Wall Street Journal and automatically a few cents are deducted from your bitcoin wallet. You don’t need to approve it (you probably don’t even realize that you are paying) and you can never spend more than you mine, unless you add bitcoin to your wallet yourself. In case you don’t like the content and stop reading after a few seconds or if you don’t scroll to the end of the article, you’ll get a partial or full refund – all done automatically.

This will solve a big part of the current ad blocking problem, because it gives content owners a new business model. 21 Inc. could be the ad blocker of the future: turn it on and you don’t see ads, turn it off and you’ll be served ads. Anybody can monetize their own content in the future and there is a huge opportunity here for a start-up.

Although lots of people dismiss 21 Inc.’s bitcoin computer (too expensive, ugly, just a Raspberry Pi, you can’t earn money with their chip, etc.), I think they are missing the bigger picture: we finally have an Internet protocol for payments! Automatic machine-to-machine payments will lead to new business models which will change the web as we know it. It’s hard to predict the future of the Internet, but I believe automatic payments are almost as disruptive as the first webbrowser was. Changing the online ads business model will just be a first step.

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Robbery at Metrotown

Today is our 10-year wedding anniversary (time flies, we were still so young during our wedding…) so I decided to take the day off and spend time with my wife. She wanted to do some shopping after bringing the kids to school, so we drove to the Metrotown mall in Burnaby, mainly because we had never been there.

We walked around inside the mall for a few minutes when we heard a loud scream behind us. My initial reaction was to ignore it, but the screaming continued. I turned around and saw an older Chinese woman laying on the ground outside the BMO bank. She seemed to be in shock and could only scream, but I noticed she was pointing in my direction.

I looked around and at that moment a big well dressed black guy with a panama hat walked by me. He carried a woman’s hand bag and walked a bit faster than normal.  I looked at him and then noticed he was the only one not paying attention to the screams. At that same moment he suddenly started running away from me, and I realized that he must have just robbed the woman and pushed her onto the ground.

I didn’t hesitate and immediately ran after him. He was quite fast but I am a decent runner so he did not manage to run far away from me. Within moments several other people followed me as well (Grace later told me about 20 people were running behind me and the thief). I shouted “stop the thief, stop the thief” and that scared the black guy, and he threw away the bag.

He probably hoped that I would stop running after him, but he was wrong. I knew that I would eventually catch up with him, these guys are generally fast at first but because I am a long distance runner I can run at a high speed much longer than they can. So I kept following him.

Problem was, the other people were not as fast as we were, so it was just me and him and some other people at least 20 meters behind us. He ran into Sears, which was virtually empty, so I screamed to the staff to stop the guy. But because he looked like a decent guy people did not immediately realize he was the criminal and let him pass.

He went around a corner, but when I rounded the corner he was suddenly gone. I first thought he may be hiding behind some racks, but then a shop assistant told me that a black guy just ran out the emergency exit. The emergency door had a sign saying that an alarm would go off if you opened it, but that was not the case so he managed to get away.

There was no point in going after him anymore, because I had no idea where he had run to, but at least the Chinese lady got her bag back. Grace was happy that I was not hurt, she had seen me running after the guy and saw from a distance that I was the only one close to him. She was quite worried that he would have a knife and stab me if I would have come too close, so seeing me safe made her quite relieved.

We were not in the mood for shopping anymore after that and left the building about 10 minutes later. By that time police cars had surrounded the mall, but I doubt that they were able to catch the guy. He was probably the only black guy in the mall, so he would have been an easy catch, but he was likely already off the premises before the police even got the call. It’s a pity, but it was a good reminder to be careful, even in shopping malls.

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Raccoons

Raccoons in the garden

Lots of wildlife around our house these days: 2 weeks ago we saw 2 whales while sailing close to our home, last week a black bear visited our garden, on the weekend I had a close encounter with a deer, and tonight a family of 4 raccoons walked around our pool!

After dinner Elaine walked to the window to look at the sunset and suddenly started screaming: “Daddy, daddy, look, look, look!”. I had no idea what was going on but because she sounded shocked, I immediately ran towards her and saw a raccoon family walking on the deck next to our pool.

Raccoons in the garden

Two of them started eating some of the plants and 2 others jumped on the pool cover (I am glad we closed it!). We took a few pictures through the window, because I thought they would run away when they would hear or see us.

Raccoons in the garden

But when 3 of them had left the garden I opened the door to the garden and the last raccoon did not run at all, but turned around to look at me! I made some hissing sounds and pretended to throw something at the animal to scare it away, but instead it took a step towards me. That actually scared me a bit. The raccoon then slowly walked into the bushes and kept on observing me from there. Raccoons in the garden

It’s not the first time I see a raccoon and it’s also not the first time that raccoons don’t run away when I encounter them. I once saw a huge one at dusk while running in the woods in Stanley Park, it just looked at me like I did not belong there (probably true!). I was more scared to see him than he was to see me running by.

Raccoons in the garden

I had assumed that if you see raccoons at home and try to scare them, they would at least have the natural reaction to flee. But that seems to be a wrong assumption. Maybe they are too used to human beings? Luckily raccoons are generally not dangerous to people, although they can attack pets or damage your garden. Let’s see what wild animals will visit us next week – I heard there are coyotes on the golf course behind our house!