• Flatfire@lemmy.ca
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    4 months ago

    I see this comment every now and then, and it always forgets the cost of the transaction, confirmation time, and of course, the need for miners to exist to process these confirmations/transactions. The energy cost is extraordinary, and the end user is taxed for the use of their own dollars.

    It’s not really feasible on a broad scale. Bitcoin is a holding stock, not a valid currency. Its value only increases because it manufactures its own scarcity. And as its scarcity increases, it naturally moves toward centralization since mining becomes too large an activity for the individual to reap any benefit. You can argue for proof of stake to eliminate the need for mining, but then you open the doors to centralization more immediately.

    • T (they/she)@beehaw.org
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      4 months ago

      Oh yes, it is also feels so good that the richer have priority on transactions because they can pay exorbitant fees while you sometimes need to wait more than a month for a transaction to be confirmed.

      I had to make a transaction to a private tracker and I don’t want to go through it never again.

    • Possibly linux@lemmy.zip
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      4 months ago

      The only crypto that is kind if useful is Monero and that’s because it is really private and anonymous. The problem with private and anonymous is that is ends up becoming a tool for crime.

      I really like Talers approach with protecting the buyer not the seller. From a mass surveillance and advertising perspective they only see half the picture which makes the deep surveillance hard. Also it keeps businesses honest and supports rule of law.

    • makeasnek@lemmy.ml
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      4 months ago

      I see this comment every now and then, and it always forgets the cost of the transaction, confirmation time

      With Bitcoin lightning the confirmation time is under a second and you pay pennies in fees as you don’t make the transaction on the main chain. Even main chain is like $1.50 for a 10 minute confirmation time which for many transactions like an international wire is still a great deal.

      The energy cost is extraordinary, and the end user is taxed for the use of their own dollars.

      The energy cost to maintain the base chain is <1% of global energy use, mostly from renewables at off-peak hours since miners have to chase the cheapest electricity. Remittance services and other funds transfer companies also use energy and human capital to move value around, it’s not free. A single on-chain tx an open a lightning channel which can contain and secure trillions of transactions off-chain. Processing these transactions takes the energy equivalent of sending an e-mail. Users are “taxed for the use of their own dollars” in regular currency as well. Who pays that tax and the amount of that tax varies by context.

      It can’t scale

      In the last two months alone, Nostr users (decentralized twitter clone like Mastodon) sent each other 3 million tips over Bitcoin lightning. It absolutely scales. And there is plenty of more room to grow.

      Its value only increases because it manufactures its own scarcity.

      Its value also comes from its use as a transactional network and from it’s political neutrality geopolitically speaking. And from the known supply which nobody can manipulate. It’s not purely scarcity.

      naturally moves toward centralization since mining becomes too large an activity for the individual to reap any benefit

      And yet mining is still distributed globally. Any person, company, or country with spare energy resources can buy an ASIC and mine. Mining pools have become more centralized, but a lot of work has been done on that in recent years and that trend is reversing as a result.

      • AggressivelyPassive@feddit.de
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        4 months ago

        Bitcoin lightning is absolutely hilarious. Your solution to Bitcoins problems is - not using Bitcoin. Wow, galaxy brain move.

        The energy cost to maintain the base chain is <1% of global energy use, mostly from renewables

        Yeah, that’s bullshit. First of all, 1% of energy use for a network that serves a few million transactions per day is really bad. A single 1kW node in Visa’s datacenter churns through that in an hour.

        Second, it’s not renewables. It’s everything they can get for cheap. And that’s often enough coal, gas, oil. Also, they’re driving up power demand as a whole, which means fossil energy is actually needed longer.

        • makeasnek@lemmy.ml
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          4 months ago

          Bitcoin lightning is absolutely hilarious. Your solution to Bitcoins problems is - not using Bitcoin. Wow, galaxy brain move.

          Bitcoin lightning is Bitcoin. It’s a smart contract on the Bitcoin main chain. You move Bitcoin “into” lightning by sending it to that smart contract, you move it “out of” lightning by having that smart contract close. It inherits the security of Bitcoin main chain while getting the transaction speed of off-chain.

          Agree to disagree about the rest. Energy use like carbon footprint is about “where you draw the box”. Off-peak demand is the cheapest power available, and it tends to be renewable. That trend continues to escalate.