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While cryptocurrencies have enjoyed an increased rise to fame from both their highly active users, who believe deeply, to the general public and to the main banking and governmental institutions.
Each of the latter believes that the cryptocurrency still has some ways to go before it can achieve the same reputation as its more established counterparts such as Gold, Silver and Palladium.
But what they say deserves a significant degree of attention and a question that deserves further thought is this: what are the costs associated with Bitcoin? From the mining sector to the general?
While proponents of different levels of experience tend to prefer confrontation with their more established rivals, it is not exactly fair to do so, in the interest of the potential that the cryptocurrency has for the future.
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This becomes abundantly clear when it comes to the underlying costs that each one accumulates within a year:
- Extraction of gold – $ 105 billion
- Recycling of gold – $ 40 billion
- currency / Conio – $ 28 billion
- Banking system – $ 1.87 billion ($ 63.8 billion on electricity costs)
- Bitcoin Mining – $ 0.78 billion
Socio-economic costs
Gold – [19659017] Deaths of workers – 50,000 registered in 100 years
Currency Fiat –
- Deaths of workers – 0 [19659010] Corruption – $ 1.60 Trillion
- Money Laundering – $ 2.65 Trillion
- Black Markets – $ 1.8 Trillion
- Institutional Frauds / Theft – $ 3, 8 00 Billion / year [19659010] Transactional frauds – $ 190 billion
- Inflation – 3.9% per annum
Bitcoin –
- Deaths of workers – 0
- Corruption / money laundering / Black markets – Negligible
- Institutional frauds / Theft – <0.5 billion never recorded
- Transactional frauds – $ 0
- Inflation – deflation (long-term)
Final considerations on how these costs add up
One thing that is important to mention also, in particular when it comes to the mining process of Bitcoin, while consuming a large one the amount of energy due to the difficulty of escalation over the years, encryption and bitcoin extraction operations have come at a time when the world is progressively moving away from "dirty" and more environmentally friendly, renewable sources.
In practice, this means that the underlying spending on electricity will not decrease only for Bitcoin as a whole, but the environmental consequences will also depreciate the mining sector.
Bitcoin and the mineral cryptocurrency as a whole are also more susceptible to drastic changes in renewable energy and advances in energy-saving technology. A factor that the production of Fiat and Oro is not able to do.
Considering the environmental impact of each of these currencies / raw materials, cryptocurrencies represent only 0.13% of the environmental impact and an economic impact of only 0.04% Gold and Fiat. When we consider Koomey's law, we can expect that the energy / GH will continue in half every 18 months until 2048.
This means that the best efficiency levels in the sector, equal to 0.733 W / GH, will reach 0.0000000873804 W / GH. Which, in the event that Bitcoin climbs over a million times its market capitalization and its size, its environmental impact would be diminished by Fiat and Gold.
What these various items of expenditure show is that while the mass media presence increases, the cryptocurrencies, compared to Gold and Fiat, they do not even have the same caliber as their counterparts in terms of corruption, spending or fraud. It must be considered, however, that both Gold and Fiat are older institutions.
When it comes to the application of Moore's law in this same discussion, it is also expected to cause a depreciation of the $ / GH level that will continue on every 18 months at least until 2020. When we look at energy renewable without decentralized emissions, we can expect that tCO2 / GH, and possibly even $ / kWh, tend towards zero.
Bitcoin companies also enjoy a much higher degree of market adaptability than established gold or Fiat producers. This makes them more likely to adapt to positive or negative market trends. Over time, this means that producers of Bitcoin and cryptocurrency are able to become more dynamic over time while legacy institutions simply can not keep up.
Unlike previous producers, there has been no serious effect on any proliferation of Bitcoin, and with the increase in the rate of use and adoption, the amount of those who commit acts such as the black market or recycling will be reduced compared to the total population.
Unlike Fiat and Gold, the world of cryptocurrency, in particular, Bitcoin will take some time to develop into a truly powerful segment of the economy, with the same rate of revenue, perhaps much more, than the his older counterparts: Rome was not built in a day.
time, it has become increasingly clear that corruption issues are a human fault, not a problem with monetary systems. But what also shows the previous statistics is that transactional fraud is endemic wherever a human manages money, because algorithms and computers work on a logical basis where 2 + 2 is always = 4.
Areas that have not been addressed include the ideology that preceded the development of cryptocurrencies like Bitcoin. And while it is made readily apparent to those who have just become aware of the cryptocurrencies, this piece has moved away from that to show what the statistics show, that the reasons why Bitcoin is becoming a more powerful, proof-tested economic institution of corruption, they are well founded.
The international community is plagued by a different level of problems and inequalities such as a prevailing black market, traffic and illegal levels of money laundering.
What Bitcoin and other cryptocurrencies are showing us is that another way is here, and that's what a world already in need needs and deserves.
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