Earlier quoted context omitted.
There's so much wrong with this post I'm not even sure where to start. Literally almost every paragraph starts something untrue. The whole article is written from a false understanding.
I’m actually curious what’s wrong about it? I read it from an outsider perspective and it’s full of very convincing arguments against “blockchains.” You’re absolutely correct that he’s writing from his understanding, but Schneider’s been in the field for decades (more than many Bitcoin proponents are old ), so I’m more inclined to believe he knows what he’s talking about than some other random person on the internet.
You don't have to trust the software, you can verify it or implement your own. You don't have to trust your internet uplink, the protocol would work over carrier pigeons or with dead drops. You don't have to trust exchanges, just exchange bitcoin for local currency with your neighbor. And even if you use an exchange you shouldn't store money there anyways. The minimum required trust is tiny (basically you yourself), but of course as Schneier points out the amount of trust involved in practise isn't nearly as low, and for many people the failure cases are much worse