Oxford professor says: Bitcoin the Greatest Global Lie

From Vivek Wadhwa

Professor at Oxford University and Duke University

In the late 1990s, capitalists of Silicon Valley and New York City Investment Bank bankers used phrases such as “Monetizer”, “mobility” and “B2C” to justify the ridiculous assessments of Internet companies. They claimed that traditional methods were not able to evaluate the potential companies that had no income because we were entering a whole new economy.

Trusting these people, and fearing that this new response to gold, small investors, grandparents and grandmothers, barbers and taxi drivers would invest their life savings in such companies as Petts. com And the Toys. The bubble burst, and they lost everything. Through a transfer of property to billions of dollars, from Main Street to Wall Street, The CEO of unscrupulous bankers had been enriched, at the expense of hundreds of thousands of ordinary investors, leaving them in despair for the future.

History is repeating itself with Bitcoin. This time it is not only Main Street USA that will lose; there will also be a developing world. Technology has enabled the guys in Silicon Valley, China and New York to rob everyone, and everywhere, who has a bank account and Internet connections.

The story that is being sold to Bitcoin victims is that because we can't trust government bank notes, Bitcoin is the future of money. One investor calls Bitcoin “God's gift to help mankind fix the money-related chaos”. A director at PayPal predicts Bitcoin's price will reach $1m in the next 5-10 years; asset managers say it's new gold.

This whole thing is crazy. Yes, Bitcoin's price can double or even fourfold because its price is based on pure speculation, and such stories are promoting this speculation. But Bitcoin's market price is almost certain that at some point it's going to fall and burn, just as it happened to the mascots, and for the same reason: because it's all an inflated invention. And when that happens, we will have no one to turn to because no government or bank is supporting Bitcoin; and the people who are blowing Bitcoin will have taken the money and gone on time.

Bitcoin's price is not the reflection of the increase in its use as currency; it reflects simply the demand for the benefit of its speculation value. The price is rising only because people around the world are hearing stories of how others doubled or tripled their money in a short period of time and do not want to escape. Unphisticated investors are borrowing to buy Bitcoi. Those who have spent the coin regret that their price increases, so they continue to accumulate.

Bitcoin was invented by an unknown person or group, to be a digital currency. It allows money to be transferred directly between individuals using cryptography. The bank account book is distributed to all users, and complex mathematical transactions guarantee the integrity of the transaction. Such a system makes it difficult for governments to know the identities of people who exchange money, so it has become a paradise for money laundering, drug trafficking, and corruption.

Beyond his use of crime, Bitcoin also has major flaws in design.

Bitcoins are created (or “ring” in predefined and gradually reduced rates, with a total limit of 21 million used Bitcoins. The growth rate of available Bitcoins is not moving at a pace with the number of people who want to buy them, so the Bitcoin price keeps rising. Because its price increases, even “players” whose computers make complex calculations to earn coins, even those who buy Bitcoine from others hesitate to use as coins, spending them.

Instead, they hold their coins while waiting for the price to rise further. With the offer for tight Bitcoine and growing demand, instead of functioning as currency, it has become an empty speculation asset.

Then there are problems with technology itself.

First, anyone who has access to a Bitcoin password (or private key) has the authority to spend the key of Bitcoin that has disconnected; losing the password means losing all related Bitcoins.

Second, linear growth in the chain of blocks that form Bitcoin is resulting in exponential growth in the accounts needed to process and verify transactions: Transactions once made in ten minutes now take hours. Third, with transaction tariffs in Bitcoin going above 25 USD, a payment 5 The USD already costs 30 USD. Clearly, this is not a functional digital currency.

More disturbing to the planet is the cost of energy required to verify transactions. Bitcoin network is said to be consuming annual energy of 32 TWh almost as much as all Denmark. Each transaction consumes 250KWh, which is enough energy to supply a house to the West for nine days. China has become the dominant state of Bitcoin mining, while its provinces offer the diggers very cheap energy.

Of course, digital coins are the future, but there are other options more meaningful than Bitcoin. Take, for example, WeChat Pay and Alippy in China, which now processes $5.5 trillion in payments. Or Unified Payment Interface in India, which makes it possible to transfer money to people within seconds of free charge. That's what happens from bank to bank, offers citizenship and client safety. So there are better and simpler ways.

Original title: <x0) / In Albanian from the world.al