As bitcoin, ethereum, and the other thousands of cryptomoney soar, along with "gas" cost, energy consumption and transaction costs I become increasingly certain they are on a hiding to nothing.
Ethereum transaction fee reached just $5.70 at the height of the 2017/2018 bull run.
I can do a transaction using my archaic 20th century credit/debit cards for less and faster. And securely. Changing currency is less expensive.
With energy cost per bitcoin mining above the cost of mining gold, they are miles away from rational money.
When energy consumption to run the negligible bitcoin operation, (for maybe 0.001% of global purchasing transactions), is more than gigawatt power stations, my original criticism of bitcoin design is confirmed.
The idea of maintaining a monster data collection of all previous transactions is bad.
It could sort of make sense if banks had big holdings of bitcoin as backing and did billions of digital transactions for buyers and sellers with the banks recording and managing the book keeping.
But that is little different from the existing fiat system.
To replace the profits of dilution, governments will simply impose a transaction charge on those bitcoin transactions.
Yesterday, NZ-AOTEAROA-ZIMBABWE decided to disallow tax deductions of interest costs on loans for investment in residential houses. BANG!! Same could be done for bitcoin transactions by banks.
You can be sure that bitcoin operations by banks and others will be taxed big heaps too.
Bitcoin does not escape governments.
Yes, bitcoin can be used to hide, store, and move money, but that's of limited use to nearly everyone.
Meanwhile, I plan to create, or others will if they figure it out, a unit of value for everyone, everywhere with negligible transaction costs, no third counter-party, no mining cost, secure, fast, and permanent.
It's mathematical logic built into the 5 forces and expressed currently in twisted pair DNA. Strong, weak, electromagnetic and gravity, brought into reality by identity and consciousness (the fifth force) currently via DNA, but not limited to DNA. A unit of value is a fundamental essential to decide course of action in financial relativity theory.
Mqurice |
