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Cara posted an update 8 years, 5 months ago
It appears from this analysis that Bitcoin is rather similar to the petro dollar given its huge energy consumption
https://powercompare.co.uk/bitcoin/
The Giza Forum (Legacy)
Closed Archive of The Old Forum
Even if this item were true, the heat issued by multiple computers can at least be put to good use; unlike the hot air produced by the “economists” stuck in the dying central banking paradigm…
Well, setting aside the critique of central bank economists, there is a physical, real world cost to mine Cryptocurrencies. As I understand it, as Bitcoin has matured, computing power to run the crypto mining has become significant and hence the mining is “drifting” into the hands of those that can fund the necessary computing resource and the electricity. Locations where electricity is cheap will have an advantage in this. And we are still in the closed system physics energy world.
This development of Bitcoin reminds me of what seems to have happened in physical gold rushes. At first many people can prospect and find gold, then as the gold gets harder to find, one has to have more organisation and resources to find gold. Eventually, we get companies and oligarchical control of the gold mining due to the resource requirement. Everything would be different in an open systems energy world.
There are a couple of thousand cryptos apart from the 20 or so ones that are the focus of interest now. Their spread may be connected with increasing hints that we are approaching non-centralized energy production; and not, as some assert, the latest “trick” of allegedly all-powerful oligarchical factions…
Whew DT, for second there I thought my BTC redememtion was going to have an electric bill attached. I’m just a poor little ol’dirt farmer from the Midwest . I’d don’t have the wherewithal to pay those costs. Let’s just call it an externalities and take the profits.