Why economists want Bitcoin to burn in a fire

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  • Intel Core i7 can do ~0.015Ghash per second
  • Cyprus has 1.1 million population
  • Why economists want Bitcoin to burn in a fire

    1. 1. Why economists want Bitcoin to burn in a fire
    2. 2. Like vs. don’t like • Person in computer field tend to praise BtC • But person in economics field is criticizing
    3. 3. Why like • Very easy to move money around the world • Cost to reproduce is zero (if electricity is free) • Tons of geek goodness
    4. 4. Why don’t like • • • • Carbon footprint from hell Breaking Gresham’s law Ghastly distribution of wealth Lack of regulation
    5. 5. Carbon footprint from hell • • • • • 19 million Gigahashes per second 970 times greater than the TOP 500 combined 15 Dec – cost $19.6 m a day (131,000 MWhr) 11 Apr – cost $147 k a day (7,000 MWhr) 134 fold in 8 months
    6. 6. • 8.25 Megatonnes of greenhouse gas emission last year • 0.03% of world’s total output • That’s the same amount of Cyprus • Norway 0.17%, Thailand 0.96%
    7. 7. Gresham’s law • Law of economy • Bad money drives out good • we use the most efficient resource where we can
    8. 8. Bitcoin breaking Gresham’s law • Electricity is not free • Use more resources to create less • Botnet will take over all the mining
    9. 9. Ghastly distribution of wealth • • • • Gini Index – measure of income distribution 0 = everyone has equal amount of income 100 = one person have all income 50% of BtC own by 1% users
    10. 10. • • • • • BtC has Gini index of 87.7 Highest - South Africa has 65.0 Thailand has 53.6 Norway has 25.0 Lowest – Sweden has 23.0
    11. 11. Lack of regulation • • • • Permit black market to emerge really quick Crowd-funding murder Drugs Child pornography
    12. 12. The current banking industry and late-period capitalism may suck, but replacing it with Bitcoin would be like swapping out hangnail for gangrene. Charles Stross
    13. 13. Curiosity?
    14. 14. References • http://www.antipope.org/charlie/blog-static/2013/12/why-i-wantbitcoin-to-die-in-a.html • http://pando.com/2013/12/16/bitcoin-has-a-dark-side-its-carbonfootprint/ • http://iang.org/papers/BitcoinBreachesGreshamsLaw.pdf • http://www.forbes.com/sites/andygreenberg/2013/11/18/meetthe-assassination-market-creator-whos-crowdfunding-murder-withbitcoins/ • https://bitcointalk.org/index.php?topic=51011.0 • http://www.bloomberg.com/news/2013-04-12/virtual-bitcoinmining-is-a-real-world-environmental-disaster.html

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