3 reasons bitcoin is not a currency—$100 in electricity bills

the leading ‘hashtable currency’ is net roi negative, this comes as a news for a lot of people as it did for me 2 weeks ago

1. Bitcoin is not ‘enforceable’

every time a new transaction occurs on the blockchain, $100 worth of electricity is spent to compute the result

this defeats the purpose of ‘decentralisation’

this puts the people who own the server farms in charge of this so called ‘currency’

Peter Thiel classifies bitcoin as ‘not a payment system’

these owners of server farms, even if they had infinite power sources which they could maintain independently without any government dependence (which is impossible and has no historical precedence)

they will still lack the power to ‘enforce’ this ‘currency’

since the USD left the gold standard, all FIAT currency is backed entirely by governments

even if the owners of these server farms came up with an army of AI bots in all their wishful thinking wanting to enforce their currency they will not be able to do it

they will need the existing supply chains to build their AI bot armies and the government control that

2. Bitcoin has created zero value for its holders

it has negative fundamentals, it costs $100 in electricity bills to process 1 bitcoin transaction

silicon valley is biased for bitcoin only because of fomo, top tier investors know if the bitcoin blockchain gets adopted by the us government they will make massive amounts of money

and I’m sure, 100% even if it 1 day got adopted by the largest economy in the world, a part of it will be distributed to the entire population or to banks and a massive dilution will occur

armies of twitter ‘bots’ have been deployed to create fomo for the retail investors

it has only taken value from the ‘holders’ and given to those smart enough to sell the highs, chamath bought some land when he sold his bitcoin

3. Bitcoin is intangible, and all intangible things are just that, intangible

the human mind always prefers and values tangible things over intangible things

Peter Thiel classifies bitcoin as ‘not a payment system’

Author: Usman Gondal


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: