@mhoye
Is this comment really here? Mastodon is giving me weird messages? Perhaps because you're on a different server?
On the topic of your comment, I've always regarded #BitCoin as an obvious scam. No scarcity there. There's an infinite supply of numbers and an infinite supply of algorithms to pretend that some of the numbers are special and more interesting than others.
Or do I need to repeat the proof that there's no such thing as an uninteresting number?
Doesn't matter what number you divide by infinity, the result is still effectively zero. One or two cryptocurrencies divided by an infinite number of them or 21 million Bitcoins divided by infinity. Still no real value anywhere there.
However what makes #Bitcoin into a special criminal scam is how it deliberately wastes power for the lottery tickets. Electric power is a real thing with a limited supply.
@shanen @Cosmic_Ray @mhoye Bitcoin doesn't "waste" energy. On the contrary, it's specifically the cost of the energy used that makes Bitcoin the first distributed solution to the Byzantine Generals' problem in Computer Science.
You're however absolutely correct in that if noone wants a global uncensorable value transfer network then of course the bitcoin tokens won't have value either.
@mhoye @shanen @Cosmic_Ray I agree that if you don't want an uncensorable global value transfer service then there's no need for a decentralized solution to the Byzantine Generals' problem.
If you do, however, then Bitcoin's Proof of Work is the first such proven to work. The cost of the energy spent (the work) is what makes the transfers uncensorable (cost prohibitive to attack).
@LuigiDev @mhoye @shanen @Cosmic_Ray That was an exaggeration.
Recent studies have found that, while Bitcoin has massive environmental implications, the traditional banking sector and gold mining give the digital currency a good run. In fact, the former is said to consume at least double the energy annually
@troed @mhoye @shanen @Cosmic_Ray that's like saying that Europe as a continent consumes more energy than the city of New York. Of course it does, it's bigger! The banking sector processes thousands of millions more of transactions that BTC could ever dream of, so if we check absolutes of course fiat consumes more
But if we're fair, we have to check the cost **per transaction**. In which BTC gets obliterated https://www.statista.com/statistics/881541/bitcoin-energy-consumption-transaction-comparison-visa/
@LuigiDev @mhoye @shanen @Cosmic_Ray Those statistics are weird. The Bitcoin energy usage is what secures the base layer - like transporting physical bars of gold around the globe. For millions of transactions per second you use Bitcoin Lightning, a second layer that uses the base layer for security that can scale indefinitely.
So no, the comparison is apt. A Bitcoin financial system uses no more energy than the technology it replaces.
@troed @mhoye @shanen @Cosmic_Ray
1. BTC lightning requires at least 2 ledger operations (open and close, maybe increase credit) for each pair. Given the current ops per second speed of the Bitcoin Blockchain it would take literally decades just to open one channel per person, when ideally you should open several channels per person (one per pair of people)
2. Money is not based on gold anymore. That's why it's called "fiat"
(+)
@troed @mhoye @shanen @Cosmic_Ray
3. Why do you say they're weird? Apart from transporting the gold which doesn't happen any more
Do you know the theorical basis around proof of work? We don't even need statistics. Proof of work needs to
1. Get a transaction
2. Allocate several miners to it
3. Each miner has to play a computationally costly game of guessing a random number. This consume tons of energy
+
@troed @mhoye @shanen @Cosmic_Ray this is not a costly operation because the ciphering algorithm is hard or something. This is costly because you literally need to guess a random number across millions of numbers.
In fact this is not a mistake. The fact that it's so costly is the only reason it's safe. The system is made based that a miner is not going to waste so much energy to trick anybody because another miner will correct it +
@troed @mhoye @shanen @Cosmic_Ray and the bad actor miner would have lost a lot of money on wasted energy. Wasting energy is not a bug, it's a feature. If energy wouldn't be wasted all miners could just try without any penalization.
4. Once the magic number is computed the transaction is added to the public replicated across thousands of nodes ledger.
On the fiat system you have to
(+)
@troed @mhoye @shanen @Cosmic_Ray 1. Register a transition with your credit card
2. If it's credit card the vendor checks if you have credit, if it's a debit card the vendor asks the bank if you have money
3. If everything is fine the transaction is registered in 3 places (cars vendor, buyer bank and seller bank)
So yeah. No magic numbers, no replication no nothing.
The fiat system is miles ahead bitcoin in value.
+
@troed @mhoye @shanen @Cosmic_Ray both from a theorical perspective and from actual data the system is more inefficient. And I'm not talking about less efficient like a 1970 card vs a nowadays car. I'm talking differences like a bicicle vs all Apollo missions.
In a world with infinite energy and no climate change you know what. I'd be fine with people playing with their stupid toys.
In our world? It should be banned from law
@LuigiDev @mhoye @shanen @Cosmic_Ray Your argument boils down to: "If no one needs a global uncensorable decentralized payments system then it would be a waste to run one".
I agree.
I just don't agree that there's no such need.
@troed @mhoye @shanen @Cosmic_Ray my argument is that even if we needed it (which we don't). Throwing the planet into flames does not justify it.
Also even without accounting the flames. The transactions per second BTC can pull of is terribly bad. As I said it would be decades to make ledger transactions for each person. So as a system is terrible.
@LuigiDev @mhoye @shanen @Cosmic_Ray But your claim that Lightning cannot work because of low base layer TPS isn't technologically true. Why keep repeating it?
Regarding "into flames" I think it's worth remembering that market pressure forces Bitcoin miners to use the lowest cost energy available. Mostly surplus hydro power - and nothing will beat solar moving forwards.
@LuigiDev @mhoye @shanen @Cosmic_Ray They magically appear since the fiat on-ramp creates them for you - and can create many with a single base layer transaction.
If your source doesn't know this I understand how come it's that off.
VISA transactions are rather costly and the time they take to clear can be upwards of six months. Until then they can be reversed.
mhoye
shanen
Cosmic Ray
Troed Sångberg
Luis/Luigi ☭