Posted on 02/13/2022 8:00:56 AM PST by SeekAndFind
Those familiar with Bitcoin are aware that it consumes an enormous amount of energy. Estimates are that Bitcoin-mining consumes as much power as the entire country of Finland — roughly one half of one percent of all of the electrical power generated on Earth.
The theory behind Bitcoin is that avoiding detection of fraudulent transactions should be more expensive in terms of time, effort, and energy than is keeping track of honest transactions. There is necessarily some power required to keep track of honest transactions, and, in the case of Bitcoin, the power required is considerable.
The rationale behind the energy-intensive computer processing necessary to support Bitcoin was described in the original Bitcoin paper: "What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party."
The crucial point is that purpose of Bitcoin is to allow people to conduct transactions among themselves without a supervising institution such as a bank, while at the same time reassuring the transacting parties that the payment system is trustworthy.
Trust is necessary to any workable system of trade, whether that trust is in the other party to a transaction, a third-party intermediary, or a cryptographic system that makes fraud difficult to commit and easy to detect. In the absence of such a system, fraud associated with internet commerce would be extremely difficult to control, given the vast number of jurisdictions that are potentially involved, stateless actors, and the relative anonymity associated with virtual interactions.
The massive amounts of energy consumed by Bitcoin-mining demonstrates how important trust is in commerce. The commercial system outside cryptocurrency relies on a vast infrastructure of lawyers, courts, regulations, and industry groups to maintain trust in transactions.
(Excerpt) Read more at americanthinker.com ...
“The crucial point is that purpose of Bitcoin is to allow people to conduct transactions among themselves without a supervising institution such as a bank...”
Every time I see that thought I think, “no government will ever allow that to remain established”.
The IRS already added a question about ownership of cryptocurrency to the 2020 tax forms. You know what can happen if you get caught lying to the IRS.
RE: The IRS already added a question about ownership of cryptocurrency to the 2020 tax forms
What if one INDIRECTLY owns cryptos via a mutual fund that invests in blockchain companies?
how important trust is in commerce.
Those supervising institutions (banks, brokerages) file info withe the IRS so they know who should be reporting certain types of income. No way in 1 million years governments are going to do away with that critical info.
The irony of Bitcoin is that it is trying to correct a problem of trust that has already been solved. One of the best channels on YouTube with almost a million subscribers is “Itchy Boots”. The episodes follow the motorbiking adventures of Noraly Shoemaker, a woman who travels alone around the world. Here travels have included India, Near East, Northern Europe, Africa, and, in her current season, South America to Alaska.
One thing she always carries with her whether she is in Kazakhstan, Zimbabwe, or Panama is US Dollars. Whatever inflated local currency she encounters she can always get her supplies and lodging using USD cash which are accepted anywhere around the world. The reason is because the world trusts that the US will always be dependable and stable follow the rule a law. For how long this will remain the case is another story.
Despite the current inflation scare and dovish Fed policies the world has already spoken and the medium of exchange that is trusted everywhere is the USD. Bitcoin is only the choice of drug dealers, human traffickers, and arms dealers that need to launder large amounts of USD to pay for their illicit activities.
What if one INDIRECTLY owns cryptos via a mutual fund that invests in blockchain companies?
Any sale/distribution from the mutual fund will be reported to the IRS.
“No way in 1 million years governments are going to do away with that critical info.”
Exactly, it would be governmental suicide, tax receipts would plummet, especially from big players where it would really hurt.
But, but, climate change!
A lie.
Bitcoin consumes almost zero energy.
It is MINING Bitcoin that consumes tons of energy. Tons of computational power to mine one Bitcoin. But once mined, it consumes none.
I have a few - in my own posssession. They consume zero energy, and only a tiny bit if I sell them or parts of them.
Typical inaccurate article.
“But once mined, it consumes none.”
Unless you want to do transactions. Your thing is as silly as claiming your car does not consume any gas while being parked so it has great fuel efficiency.
I just looked at my 1040 form for 2020, and the question reads:
“At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
Not silly at all. Have 40 years in computers. Zero energy until there is a transaction, and each transaction energy cost is pennies.
“and each transaction energy cost is pennies.”
ROFLOL! And how on earth did you come up with that estimate?
The vaxxed trust them 100%
I’m talking about the transaction of a ledger post when any part of a Bitcoin is exchanged.
BLOAT
Most of the energy used by Bitcoin is renewable or surplus.
It would be nice if the writers for that blog did 2 minutes worth of research.
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