Earlier quoted context omitted.
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.
I think the main reason for the dissonance is that Schneier talks about the trust that happens (and maybe has to happen in real-world scenarios) while the bitcoin community likes to talk about the minimum amount of trust necessary. 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…
One detail Schneier misses though is:
> Honestly, cryptocurrencies are useless. They’re only used by speculators looking for quick riches, people who don’t like government-backed currencies, and criminals who want a black-market way to exchange money.
The second statement contradicts the first. People who don't like/trust government-backed currencies aren't fanatics. The way the big banks handle money is quite reckless and dangerous, as we've seen time and time again. And buying drugs for your own personal use should be legal (IMO) but is not. Cryptocurrencies are useful. Maybe not to most people, or to Bruce Schneier, but that (blanket) statement is simply false.